Eight former African Heads of State and Government, including Nigeria’s Olusegun Obasanjo and Yemi Osinbajo, have signed the Cape Town Declaration, calling for the critical need for debt relief for highly indebted nations and advocating for lower borrowing costs for all developing countries.
The Declaration was signed on Thursday, February 27, 2025, at the launch of the African Leaders Debt Relief Initiative (ALDRI), which reflects the leaders’ commitment to rallying for a comprehensive debt relief strategy for countries in dire financial situations.
The launch of the initiative took place on the sidelines of the first G20 Finance Ministers’ meeting in Cape Town, where the South African G20 Presidency has made debt sustainability a central focus. The Declaration also aligns with the African Union’s Agenda 2063, underscoring the continent’s long-term development aspirations.
The African Leaders Initiative on Debt Relief is led by a distinguished group of former African leaders, including:
- Olusegun Obasanjo, Former President of the Federal Republic of Nigeria (Chair)
- Joyce Banda, Former President of the Republic of Malawi
- Jakaya Mrisho Kikwete, Former President of the United Republic of Tanzania
- Dr. Ameenah Gurib-Fakim, Former President of the Republic of Mauritius
- Macky Sall, Former President of the Republic of Senegal
- Nana Addo Dankwa Akufo-Addo, Former President of the Republic of Ghana
- Hailemariam Desalegn, Former Prime Minister of the Republic of Ethiopia
- Yemi Osinbajo, Former Vice President of the Federal Republic of Nigeria
The signatories called for intensified international cooperation to address the debt crisis and emphasized the urgent need to reform the global financial architecture to better support developing countries.
“Africa is facing unsustainable debt burdens. It is crucial that we come together to find a solution to this crisis. Africa’s future is intertwined with the world’s future, and we must work to resolve the debt crisis in order to drive sustainable economic development across the continent. South Africa’s commitment to prioritizing debt relief and collaborate with nations to address the root causes of high-cost debt is a welcome one,” said Olusegun Obasanjo, former President of the Federal Republic of Nigeria.
The Debt Crisis and the Need for Action
In 2023, low- and middle-income countries collectively spent $1.4 trillion servicing foreign debt, with interest payments reaching a staggering $406 billion. Africa, in particular, is facing disproportionately high borrowing rates, making it harder to invest in the continent’s growth and development.
As the G20 Summit in 2025 draws nearer, the Cape Town Declaration offers a timely opportunity to focus attention on Africa’s debt crisis and the broader challenges faced by developing nations, including health, education, food and energy insecurity and the environment.
The African Leaders Debt Relief Initiative continues to advocate for policies that promote economic resilience and sustainable growth across the African continent. The signatories are committed to working collaboratively with international stakeholders to implement these crucial reforms, ultimately driving forward Africa’s development agenda.
“African countries are burdened with disproportionately high borrowing rates and debt costs, often requiring repayment within a short timeframe. A comprehensive solution to the debt crisis must be a priority for all. The resolution of this global issue benefits everyone, everywhere,” said Macky Sall, former President of the Republic of Senegal.
“Countries on the frontlines of the development crisis are the same ones grappling with record levels of debt. By 2030, these nations will need to invest up to $6.4 trillion annually to achieve sustainable development. However, this goal remains unaffordable given their overwhelming debt servicing obligations,” said Joyce Banda, former President of the Republic of Malawi.
“The debt crisis has been worsened by rising interest rates and a stronger dollar, making it increasingly difficult for African countries to manage dollar-denominated debt. A global solution to this crisis is not only vital for our economies but will also benefit everyone around the world,” said Jakaya Mrisho Kikwete, former President of the United Republic of Tanzania.
“Ghana’s situation underscores the need for debt relief that is both fair and needs-based. Countries in debt distress must receive the necessary support to invest in sustainable solutions for their people,” said Nana Addo Dankwa Akufo-Addo, former President of the Republic of Ghana.
“The Global South has suffered under crippling debt for far too long. This moment, and the years ahead, must mark a turning point. We must unite to find a global solution to this global crisis. Leadership from the Global South is essential in advocating for a comprehensive debt relief mechanism. Small Island Developing States (SIDS), like Mauritius, are particularly vulnerable to the climate crisis. Many of these nations are drowning in debt as they are forced to address the devastating impacts of climate change and rising sea levels,” said Dr. Ameenah Gurib-Fakim, former President of the Republic of Mauritius.
“Multilateral cooperation between countries, multilateral banks, the private sector, and other stakeholders is essential for reforming the global debt system. Africa must have a voice in shaping these reforms. We fully support the G20 presidency and the African Union’s efforts to find solutions to the debt crisis,” said Hailemariam Desalegn, former Prime Minister of the Republic of Ethiopia.
“More than half of African countries now allocate more funds to interest payments than to healthcare, leaving them with little fiscal capacity to invest in sustainable development. Immediate action is critical, and a breakthrough must be reached as the G20 meets this year. South Africa’s presidency of the G20 offers a vital opportunity to forge a strong, unified stance on debt relief,” said Yemi Osinbajo, former Vice President of the Federal Republic of Nigeria.