AFRICA - Eight former African presidents launch initiative to tackle debt crisis that is strangling economies of poorer countries

Cape Town (Agenzia Fides) – “The debt crisis has been aggravated by rising interest rates and the strength of the dollar, making it increasingly difficult for African countries to manage dollar-denominated debt. A global solution to this crisis is not only vital for our economies, but will benefit the entire world,” said former President of Tanzania, Jakaya Mrisho Kikwete, presenting the “African Leaders Debt Relief Initiative” (ALDRI), promoted by eight former African Heads of State. The ALDRI initiative was launched in Cape Town on the sidelines of the G20 Finance Ministers Summit, during which the South African presidency of the forum - which brings together the world's 20 most industrialized countries - has placed debt sustainability at the centre of the debate.
The signatories have underlined the urgent need to reform the global financial architecture to provide greater support to developing countries.
“Africa is facing unsustainable debt burdens. It is essential that we come together to find a solution to this crisis. Africa's future is intertwined with the future of the world and we must work to resolve the debt crisis, thereby boosting sustainable economic development across the continent. South Africa's commitment to prioritize debt relief and to work with nations to address the root causes of high-cost debt is a positive step,” said Olusegun Obasanjo, former president of Nigeria.
Macky Sall, former President of Senegal, has underlined the urgency of debt relief: “African countries bear disproportionately high interest rate burdens and debt costs, which often require repayment within a very short time frame. A comprehensive solution to the debt crisis must be a priority for all, as solving this problem benefits everyone, everywhere.” Joyce Banda, former President of Malawi, has highlighted the financial challenges facing developing nations: “The countries on the front line of the development crisis are the same ones struggling with record levels of debt.
By 2030, these nations will need to invest up to $6.4 trillion a year to achieve sustainable development. However, this goal remains unsustainable, given their massive debt service obligations.” Yemi Osinbajo, former Vice President of Nigeria, stressed the need for urgent action: “More than half of African countries now spend more on interest payments than on health care, leaving them with very little financial room to invest in sustainable development. It is crucial to act immediately and achieve a breakthrough at the next G20 meeting. The South African presidency of the G20 represents a vital opportunity to forge a strong and united position in favour of debt relief”. (L.M.) (Agenzia Fides, 28/2/2025)

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