President Cyril Ramaphosa has called for a fresh approach to tackle Africa’s persistent debt crisis, warning that half of African nations pay more to service their debt than they do on healthcare, education, and other key development priorities.
Addressing the opening of the G20 Finance Ministers and Central Bank Governors’ meeting in Cape Town on Wednesday, Ramaphosa urged global leaders to move swiftly in confronting various global challenges, including inequality, climate change, and the continent’s high debt burden.
“African nations continue to face disproportionate costs to service their debt, despite many advanced economies carrying higher burdens,” Ramaphosa noted. He pointed out that this reality hinders progress on development goals, setting some countries back in efforts to improve public welfare.
Ramaphosa highlighted an initiative spearheaded by former African heads of state aimed at resolving Africa’s debt and solvency crises. The plan calls for clear, actionable solutions to mobilize low-cost financing for development, providing a potential path to accelerated growth.
As the G20 meeting draws to a close, Nigeria’s former president, Olusegun Obasanjo, is set to unveil details of this debt relief initiative in Cape Town on Thursday. The proposal could mark a turning point in ending the decades-old cycle of escalating debt across the continent.
