Eight former African Heads of State and Government signed the Cape Town Declaration on February 26, 2025. They called for major debt relief for highly indebted countries and urged for lower borrowing costs for all developing nations. The declaration was signed during the launch of the African Leaders Debt Relief Initiative (ALDRI) on the sidelines of the first G20 Finance Ministers’ meeting in Cape Town, under South Africa’s G20 Presidency.
The African Leaders Debt Relief Initiative aims to push for a comprehensive debt relief strategy for countries in financial distress. The initiative is led by a group of respected former African leaders, including Olusegun Obasanjo of Nigeria, Joyce Banda of Malawi, Jakaya Mrisho Kikwete of Tanzania, Dr. Ameenah Gurib-Fakim of Mauritius, Macky Sall of Senegal, Nana Addo Dankwa Akufo-Addo of Ghana, Hailemariam Desalegn of Ethiopia, and Yemi Osinbajo of Nigeria.
During the signing, the leaders stressed the need for international cooperation to solve the debt crisis. They also emphasized the importance of reforming the global financial system to better support developing countries. Olusegun Obasanjo highlighted that Africa’s debt burden is unsustainable and called for collective action to resolve the crisis.
In 2023, low- and middle-income countries spent $1.4 trillion on foreign debt payments, with $406 billion in interest alone. Africa faces high borrowing rates, making it difficult to fund growth and development. The Cape Town Declaration aims to bring global attention to Africa’s debt crisis as the 2025 G20 Summit approaches. It also addresses challenges faced by developing nations, such as health, education, food and energy insecurity, and environmental issues.
The initiative seeks to promote economic resilience and sustainable growth across Africa. The leaders are committed to working with international stakeholders to implement necessary reforms and advance Africa’s development goals.
Macky Sall stressed the urgency of debt relief, stating that African countries face high borrowing costs and short repayment periods. Joyce Banda highlighted the financial struggles of developing nations, emphasizing the need for investment in sustainable development. Jakaya Mrisho Kikwete pointed to global economic trends, such as rising interest rates, which worsen the debt crisis. Nana Addo Dankwa Akufo-Addo called for fair and needs-based debt relief, while Dr. Ameenah Gurib-Fakim urged a global solution for the Global South’s debt challenges.
Hailemariam Desalegn emphasized the importance of multilateral cooperation to reform the global debt system. Yemi Osinbajo called for immediate action, noting that many African countries spend more on interest payments than on healthcare, limiting their ability to invest in sustainable development.
The Cape Town Declaration sets the stage for urgent action on Africa’s debt crisis before key international financial discussions. It reinforces the need for global cooperation to achieve sustainable economic growth across the continent.