Eight former African Heads of State and Government have launched the African Leaders Debt Relief Initiative (ALDRI) and signed the Cape Town Declaration, calling for urgent debt relief and a fundamental restructuring of the global financial system.
The initiative, unveiled during the G20 Finance Ministers’ meeting in Cape Town, highlights the devastating impact of unsustainable debt on African economies and the need for a fairer financial structure for developing nations.
Led by former Nigerian President Olusegun Obasanjo, ALDRI includes former Presidents Joyce Banda (Malawi), Jakaya Mrisho Kikwete (Tanzania), Ameenah Gurib-Fakim (Mauritius), Macky Sall (Senegal), Nana Addo Dankwa Akufo-Addo (Ghana), former Prime Minister Hailemariam Desalegn (Ethiopia), and former Vice President Yemi Osinbajo (Nigeria).
Their message is clear: Africa’s future is being stifled by an overwhelming debt burden that must be addressed.
“Africa is facing unsustainable debt burdens. It is crucial that we come together to find a solution to this crisis," Obasanjo said.
"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."
Obasanjo said 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.
The Cape Town Declaration aligns with South Africa’s G20 presidency focus on debt sustainability and supports the African Union’s Agenda 2063, which outlines long-term development goals.
The declaration comes at a time when many developing nations are struggling under soaring debt repayment costs.
In 2023, low- and middle-income countries spent $1.4 trillion servicing foreign debt, with interest payments reaching $406 billion.
African nations, in particular, face disproportionately high borrowing rates, limiting their ability to invest in critical sectors such as infrastructure, healthcare, and education.
“Countries on the frontlines of the development crisis are the same ones grappling with record levels of debt," Banda said.
"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 Banda.
Hailemariam Desalegn stressed the importance of global cooperation in tackling the issue.
“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.”
The declaration calls for more than just debt relief—it advocates for a restructuring of the global financial system to lower borrowing costs for developing countries.
The leaders argue that the current system perpetuates cycles of debt and underdevelopment, preventing sustainable economic growth.
As the 2025 G20 Summit approaches, the Cape Town Declaration sets the stage for a renewed global focus on Africa’s debt crisis.
The initiative also ties into broader challenges such as health, education, food security, energy access, and environmental sustainability, which are all affected by high debt burdens.
ALDRI aims to work with international stakeholders to push for policy changes that promote economic resilience and sustainable development across Africa.
The Cape Town Declaration represents a unified call for justice and economic fairness, positioning Africa as a key voice in the push for global financial reform.
Its success will depend on international support and tangible policy shifts, but its launch has already placed debt relief at the forefront of global economic discussions, offering a ray of hope for millions across the continent.