Religious leaders call for debt waivers to promote economic development in Africa

Interfaith African leaders have called for debt waivers and processes to support regional economic development.

The call was made by several dignitaries from the continent at a meeting held in Kigali, Rwanda ahead of the Jubilee 2025 year, which faith communities always celebrate globally.

Representing the Catholic Church, Anglican Church, Lutheran, among other Christian denominations, Muslims, as well as National Councils of Churches, interreligious councils across 13 countries in Africa, and regional religious organizations, the dignitaries released a statement to G20, G7, United Nations, IMF and World Bank decision-makers

They said African countries face agonising choices between spending and investing in their people and paying their creditors.

“This year alone, Africa will spend $90 billion servicing public debt. Yet, the average African country’s combined spending on health, education and social protection is two-thirds of their debt payments," one of the delegates said.

They spoke during the African Faith leaders' meeting in Kigali, Rwanda on Saturday.

The religious leaders recalled the work of faith communities 25 years ago during the Jubilee 2000 year which led to the largest ever collective debt relief initiative.

The Heavily Indebted Poor Countries/Multilateral Debt Relief Initiative (HIPC/MDRI) mobilized more than $130 billion in debt relief in 38 countries.

“The former Tanzanian President Julius Nyerere was among the first African political leaders who raised their voices to question the need to put debt above the lives of our children,” Christian Council of Churches in Tanzania secretary-general Rev  Canon Makunzo Moses Matonya said.

They said debt forgiveness is key to the region’s economic renewal.

“Unfortunately, we have seen debt rise to levels where we have to face that question again,” Matonya said.

Since 2010, African countries’ interest payments more than doubled, as a percentage of their revenue.

At the same time, their combined spending on health, education, social protection and climate amount to two-thirds of debt payments.

Nigeria’s Catholic Diocese of Sokoto Bishop Matthew Hassan Kukah said debt relief freed the fiscal space for important poverty reduction investments early in the millennium.

“An important focus for us, as then, is that we have good governance safeguards to protect public

participation and accountability in the use of those funds,” Kukah said.

Faith leaders in Africa have become increasingly vocal as the continent faces the effects of multiple crises.

“We have allowed a divorce between traditional economic approaches and spiritual values,” Supreme Council of Kenya Muslims Sheikh Ibrahim Lethome said.

Lethome said as faith leaders, they have a role in guiding their communities to make those connections.

They called for responsible lending and borrowing principles, debt contract clauses that share climate and other risks, as well as additional sources of finance that do not create debt to prevent new high indebtedness cycles.

“While we have moved forward critical debt relief and aid, we still need improvements in debt relief and aid processes,” said Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network, and a co-organiser of the convening of African leaders.

“If we had the debt policies and institutions religious leaders called for 25 years ago, we would have tools to help address the climate and poverty crises,” LeCompte said.