Former president Joyce Banda, alongside six other former African leaders, is today expected to sign the Cape Town Declaration, a call for urgent debt relief and fairer borrowing terms for African nations.
The declaration comes at a time when Malawi’s public debt is estimated at K15.1 trillion, with interest repayment on debt taking up the lion’s share of the national budget.
The declaration will mark the launch of the African Leaders Debt Relief Initiative, a unified effort to push for a comprehensive debt solution.
In an interview Wednesday, Banda’s executive assistant Arnold Mnelemba said the initiative brings together the leaders to leverage their collective voice and influence to facilitate a breakthrough on this agenda.
“You will agree with me that Africa is at the epicentre of the global debt crisis and Malawi is no exception.
“Her Excellency Dr Joyce Banda agreed to the call from H.E. Olusegun Obasanjo, the interim chairperson of the grouping, and other members to join the bandwagon of these leaders advocating for a noble cause,” Mnelemba said.
He added that if the initiative is successful in its calls, Malawi will benefit greatly because money saved from servicing the debt will go towards important areas such as purchasing drugs for hospitals.
A statement from the African Leaders Debt Initiative says other former leaders involved in the initiative are former president of Nigeria, Obasanjo, former president of Senegal Macky Sall and former president of Tanzania Jakaya Kikwete.
Others include former president of Mauritius Ameenah Gurib-Fakim, former Prime Minister of Ethiopia Hailemariam Desalegn and former vice president of Nigeria Yemi Osinbajo.
On Tuesday, the former leaders engaged South Africa’s President Cyril Ramaphosa.
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.
It also aligns with the African Union Agenda 2063, reinforcing Africa’s long-term vision for sustainable development.
During the 2023 United Nations General Assembly, President Lazarus Chakwera pleaded for debt cancellation from the international community.
Chakwera said Least Developed Countries needed a decision and action on debt, arguing that Malawi is distressed because its debt is unsustainable.
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