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Nigerian former president Olusegun Obasanjo and other former African government leaders have come together to sign the Cape Town Declaration, a call for urgent debt relief and fairer borrowing terms for African nations.

The declaration marks the launch of the African Leaders Debt Relief Initiative, a unified effort to push for a comprehensive debt solution for the continent.

The Cape Town Declaration will be unveiled on the sidelines of the G20 Finance Ministers meeting in Cape Town, where South Africa’s G20 presidency has placed debt sustainability and debt relief at the heart of the global economic agenda.

African Development Bank estimates Africa’s external debt reached $1.15 trillion in 2023. This represents 41% of the continent’s GDP. It is estimated that African countries paid $163 billion in debt service in 2024.

According to African Export-Import Bank, the effective interest rates for borrowing in Africa have experienced a notable increase, peaking at 8.2% in 2024. This is a significant rise from the stable range of 5.4% to 6.3% observed from 2008 to 2019.

The agenda for debt relief and fairer borrowing terms aligns with the African Union Agenda 2063, reinforcing Africa’s long-term vision for sustainable development, a statement by the group said.

“This landmark initiative is being spearheaded by a group of African leaders committed to contributing to re-shaping the global financial system,” according to the statement.

Apart from Obasanjo, who chairs the initiative, other African leaders who have signed the declaration include Macky Sall, former President of the Republic of Senegal; Joyce Banda, former President of the Republic of Malawi; and Jakaya Mrisho Kikwete, former President of the United Republic of Tanzania. The others are Ameenah Gurib-Fakim, former President of the Republic of Mauritius; Hailemariam Desalegn, former Prime Minister of the Republic of Ethiopia; and Yemi Osinbajo, former Vice President of the Federal Republic of Nigeria.

The initiative will be launched during a press conference on Thursday, 27 February 2025, in Cape Town. South Africa.