February 25, 2025
In a significant move to address the economic challenges facing Africa, eight former African Heads of State and Government, including Nigeria’s Olusegun Obasanjo and Yemi Osinbajo, have signed the Cape Town Declaration.
This landmark initiative calls for urgent debt relief for highly indebted African nations and advocates for lower borrowing costs for developing countries.
The declaration was launched during the G20 Finance Ministers’ meeting in Cape Town, aligning with South Africa’s G20 presidency and the African Union’s Agenda 2063.
The leaders emphasize the need for global cooperation to address Africa’s unsustainable debt burdens, which hinder investment in critical sectors like healthcare, education, and infrastructure.
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They argue that reducing debt servicing costs would allow African countries to allocate more resources towards sustainable development goals and economic growth.
Key points of the Cape Town Declaration:
• Debt Relief: The declaration urges international creditors, including multilateral institutions and private lenders, to provide comprehensive debt relief to eligible African countries. This would involve restructuring or canceling debts to make them more manageable.
• Lower Borrowing Costs: It advocates for mechanisms to reduce borrowing costs for developing countries, such as through more favorable interest rates or longer repayment terms. This would help African nations access capital at more affordable rates.
• Global Cooperation: The declaration emphasizes the importance of international cooperation to address the root causes of Africa’s debt crisis. It calls for a coordinated approach among governments, international organizations, and private sector entities to ensure sustainable debt management practices.
• Investment in Development: By reducing debt burdens, African countries would be able to invest more in critical sectors such as healthcare, education, and infrastructure. This would support long-term economic growth and poverty reduction.
• Alignment with Global Agendas: The initiative aligns with the African Union’s Agenda 2063 and the United Nations’ Sustainable Development Goals (SDGs). It underscores the need for debt sustainability to achieve these global development objectives.
Impact and future directions:
The Cape Town Declaration marks a significant step towards addressing Africa’s debt challenges.
It is expected to influence policy discussions at upcoming international forums, including the G20 and the African Union summits.
The initiative also highlights the role of former leaders in shaping global policy and advocating for African interests on the international stage.
As the declaration gains momentum, it is likely to spark further dialogue on debt restructuring, sustainable financing, and economic development in Africa.
The involvement of influential figures like Obasanjo and Osinbajo adds weight to the initiative, potentially leading to more concrete actions from international creditors and governments in the coming months.
