Eight former African Heads of State and Government have signed the Cape Town Declaration, calling for urgent debt relief and lower borrowing costs for developing nations. The declaration was launched alongside the first G20 Finance Ministers' meeting in Cape Town, under South Africa’s G20 Presidency, which has prioritized debt sustainability. The initiative aligns with the African Union’s Agenda 2063, emphasizing long-term economic stability.

The African Leaders Debt Relief Initiative (ALDRI) is spearheaded by former Nigerian President Olusegun Obasanjo, alongside Joyce Banda of Malawi, Jakaya Kikwete of Tanzania, Ameenah Gurib-Fakim of Mauritius, Macky Sall of Senegal, Nana Akufo-Addo of Ghana, Hailemariam Desalegn of Ethiopia, and former Nigerian Vice President Yemi Osinbajo. These leaders stress the need for global financial reforms to help highly indebted nations overcome economic distress.

Obasanjo emphasized Africa’s urgent need for debt solutions, highlighting that the continent’s future is linked to the global economy. Macky Sall noted that African nations face disproportionately high borrowing rates and short repayment windows, which hinder economic growth. Joyce Banda pointed out that developing nations must invest up to $6.4 trillion annually by 2030 to meet sustainable development goals—an impossible feat under crushing debt obligations.

Jakaya Kikwete attributed worsening debt conditions to rising interest rates and a stronger U.S. dollar, making it increasingly difficult for African countries to manage dollar-denominated debt. Nana Akufo-Addo called for a fair and needs-based debt relief framework, citing Ghana as an example of a country struggling under severe financial distress. Ameenah Gurib-Fakim urged immediate global action, stressing that small island nations like Mauritius are doubly burdened by debt and the climate crisis.

Hailemariam Desalegn called for multilateral cooperation to reform the global debt system, underscoring Africa’s role in shaping financial policies. Yemi Osinbajo warned that more than half of African nations now spend more on interest payments than on healthcare, limiting resources for sustainable development.

The Cape Town Declaration presents critical opportunity to address Africa’s debt crisis within a broader global financial reform agenda. The signatories of the initiative are advocating for stronger international collaboration to establish a more sustainable and equitable financial system.