Seven former African leaders have signed the Cape Town Declaration, calling for urgent debt relief and fairer borrowing terms for countries from the continent.
The Cape Town Declaration marks the official launch of the African Leaders Debt Relief Initiative, aimed at advocating for comprehensive solutions to alleviate Africa’s mounting debt burden.
The initiative will be unveiled on Thursday during a press conference held on the sidelines of the G20 Finance Ministers meeting in Cape Town.
Under South Africa’s G20 presidency, discussions surrounding debt sustainability and relief are set to take centre stage within the global economic agenda.
The signatories to the Cape Town Declaration include prominent African figures committed to reshaping the global financial system.
The initiative is chaired by former Nigerian president Olusegun Obasanjo. Other members are former presidents Macky Sall (Senegal), Joyce Banda (Malawi), Jakaya Kikwete (Tanzania) and Ameenah Gurib-Fakim (Mauritius).
The group also includes former Ethiopian prime minister Hailemariam Desalegn and ex-Nigerian vice president Yemi Osinbajo.
Africa has been grappling with escalating debt levels exacerbated by various factors, including reliance on external financing and recent economic shocks from climate change and the COVID-19 pandemic.
Many countries face unsustainable debt-to-gross domestic product ratios that hinder their ability to invest in critical sectors such as health care, education and infrastructure.
The initiative seeks not only to advocate for immediate debt relief but also aims to establish more equitable lending practices that can foster long-term economic stability across African nations.
It aligns with the African Union’s Agenda 2063, which outlines a long-term vision for sustainable development across the continent.
JN/APA