Obasanjo, Ex-African Leaders Demand Urgent Debt Relief for Struggling Nations

Obasanjo, Ex-African Leaders Demand Urgent Debt Relief for Struggling Nations

Eight former African Heads of State and Government have signed the Cape Town Declaration, calling for debt relief for highly indebted countries and pushing for lower borrowing costs for all developing nations. The declaration was launched as part of the African Leaders Debt Relief Initiative (ALDRI), a movement aimed at securing a comprehensive debt relief strategy for financially distressed nations. The initiative was unveiled on the sidelines of the G20 Finance Ministers’ meeting in Cape Town, where South Africa, as G20 President, made debt sustainability a top priority.

The initiative aligns with the African Union’s Agenda 2063, emphasizing Africa’s long-term development goals. Among the key figures leading the initiative are Olusegun Obasanjo (Nigeria, Chair), Joyce Banda (Malawi), Jakaya Mrisho Kikwete (Tanzania) and Dr. Ameenah Gurib-Fakim (Mauritius). The signatories stressed the urgent need for global financial reform, calling for enhanced international cooperation to address Africa’s growing debt crisis.

Former Nigerian President Olusegun Obasanjo emphasized the pressing nature of the issue, stating: “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.”

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Former Malawian President Joyce Banda highlighted the financial strain on developing nations, saying: “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.”

Similarly, leaders noted that African nations often face disproportionately high borrowing rates and short repayment periods, making economic progress difficult. The African Leaders Debt Relief Initiative aims to work with global financial institutions and governments to implement much-needed reforms, ensuring economic resilience and sustainable development across the continent.