Africa’s call for economic justice and financial fairness is gaining momentum with the launch of the African Leaders Debt Relief Initiative (ALDRI) and the signing of the Cape Town Declaration. Spearheaded by eight former African Heads of State and Government, this initiative underscores the urgent need for debt relief and a restructured global financial system that prioritizes the needs of developing nations.
The initiative was unveiled during the G20 Finance Ministers’ meeting in Cape Town, a critical platform for addressing global economic challenges. Former Nigerian President Olusegun Obasanjo leads the group, alongside Joyce Banda (Malawi), Jakaya Mrisho Kikwete (Tanzania), Ameenah Gurib-Fakim (Mauritius), Macky Sall (Senegal), Nana Addo Dankwa Akufo-Addo (Ghana), Hailemariam Desalegn (Ethiopia), and Yemi Osinbajo (Nigeria). These prominent leaders are championing Africa’s voice in the push for a fairer global financial structure.
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Africa’s economic growth is under pressure from mounting debt burdens. According to the World Bank, low- and middle-income countries spent $1.4 trillion servicing foreign debt in 2023, with $406 billion going toward interest payments. African nations bear a disproportionate share of this burden, facing higher borrowing rates that limit investments in essential sectors such as infrastructure, healthcare, education, and climate resilience.
“Africa is facing unsustainable debt burdens. It is crucial that we come together to find a solution to this crisis,” said Obasanjo during the meeting. “Africa’s future is intertwined with the world’s future, and we must resolve the debt crisis to drive sustainable economic development across the continent.”
The Cape Town Declaration aligns with South Africa’s G20 presidency focus on debt sustainability and supports the African Union’s Agenda 2063, which envisions a prosperous and sustainable future for the continent.
Beyond immediate debt relief, the declaration advocates for a restructuring of the global financial system to lower borrowing costs for developing nations. The current system, the leaders argue, perpetuates cycles of debt and underdevelopment, making it difficult for countries to invest in long-term sustainability goals.
“By 2030, developing 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.
The leaders are calling for greater multilateral cooperation among governments, financial institutions, and the private sector to reform the global debt system.
“Global cooperation is essential for reforming the debt system. Africa must have a voice in shaping these reforms,” said Desalegn.
The Cape Town Declaration recognizes the deep connection between debt sustainability and broader development goals. High debt burdens undermine efforts to tackle health, education, food security, energy access, and climate resilience – critical areas for Africa’s sustainable development.
ALDRI’s vision is to work with international stakeholders to push for policies that promote economic resilience and sustainable growth. The declaration’s release ahead of the 2025 G20 Summit positions Africa at the heart of global discussions on debt relief and economic reform.
With international support and tangible policy shifts, the Cape Town Declaration offers a beacon of hope for millions across the continent – a step toward unlocking Africa’s full potential and building a future of shared prosperity and sustainability.
