The Institute for Economic Justice (IEJ) is proud to be one of 165 civil society and debt justice organisations urging President Ramaphosa to prioritise debt justice for Africa and the Global South during South Africa’s G20 Presidency.
The Urgency of Debt Reform
Developing countries face unsustainable debt burdens that divert resources from vital development needs. African nations alone pay US$74.5 billion annually in excess interest due to the “African premium,” undermining progress on health, education, and climate action. Current debt restructuring mechanisms, including the G20 Common Framework, remain too slow and insufficient.
Key Demands
The open letter calls for:
- UN-led sovereign debt reform anchored in human rights and equity.
- Radical reforms to debt restructuring, including deeper, faster relief and legal enforcement mechanisms.
- Establishment of an African Credit Rating Agency and a global, transparent debt registry.
- Creation of a Borrowers Club to strengthen negotiating power among debtor nations.
- Binding principles for responsible lending and borrowing aligned with developmental goals.
- Sale of IMF gold reserves to fund debt relief initiatives.
- Cancellation of unsustainable and illegitimate debts from all creditors.
A Chance for Leadership
This initiative aligns with South Africa’s foreign policy objectives and the African Union’s G20 priorities. The letter highlights the urgent opportunity for South Africa to catalyse systemic reforms that benefit Africa and the Global South, ensuring sustainable development, climate action, and human rights protection.
The IEJ, together with its 164 co-signatories, calls for meaningful progress before the G20 Presidency concludes, emphasising that people’s futures depend on decisive and equitable action on debt.