Fresh approach needed to tackle Africa’s debt crisis, says Ramaphosa

JOHANNESBURG - President Cyril Ramaphosa said that a fresh approach was needed to tackle the age-old debt crisis in Africa.

Ramaphosa made the comments during the opening of the G20 Finance Ministers and Central Bank Governors' meeting in Cape Town on Wednesday.

ALSO READ:

- Ramaphosa calls out leaders on slow pace of addressing global challenges

- Ramaphosa: 'The erosion of multilateralism presents a threat to global growth & stability'

- Ramaphosa calls on global leaders to improve responses to natural disasters

He used the occasion to rally global leaders to move with speed in addressing a range of challenges, including inequality, climate change, economic growth, and Africa’s high debt burden.

Slapped with a high-risk premium, African nations are left to pay more than most developed economies, even with higher debt, to service theirs.

At least half of African countries spend more on servicing their debt than on health, education, and other key domestic projects.

This has set some countries behind on their development goals.

Ramaphosa said that an initiative by former African heads of state could help get the continent back on track.

"This initiative focuses on the challenges that many African countries are facing in servicing their national debt.

"They would like to see greater urgency in addressing the debt and solvency challenges many countries face and determine clear solutions to mobilise low-cost financing for development."

As the G20 meeting wraps up, Nigeria’s former president, Olusegun Obasanjo, is set to unveil the initiative in Cape Town on Thursday.