Ramaphosa calls for urgent global action on Africa's debt crisis
President Cyril Ramaphosa has called for urgent and collective global action to address the growing debt burden that is crippling many developing countries, especially in Africa.
In his weekly letter to the nation, Ramaphosa highlighted the need for sustainable and affordable financing to achieve the United Nations Sustainable Development Goals (SDGs) by 2030.
Following the 4th Financing for Development Conference held in Sevilla, Spain, Ramaphosa said the world is facing "more daunting challenges than at any other time," including the climate crisis, poverty, and economic instability.
He also highlighted the immense funding gap facing the world: 'It is estimated that the world needs an extra $4 trillion a year to meet the UN Sustainable Development Goals by 2030, a gap which can only be closed through more affordable, long-term sustainable financing.'
He drew attention to the growing challenge posed by debt repayments, noting that: 'Around 3.4 billion people now live in countries that are spending more on interest payments to creditors than on health and education.'
Quoting the Jubilee Commission appointed by the late Pope Francis, Ramaphosa said:
'While few countries have defaulted on their debt, they are defaulting on their people, their environment, and their future.'
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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading North West University Business School economist, Prof Raymond Parsons, noted the heavy economic headwind these tariffs create. 'While not unexpected, it creates a challenging economic headwind for SA. 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The consultation process is expected to be lengthy and Ramaphosa's decision regarding Mchunu's future may not be made soon, a source said. While these consultations are ongoing, Ramaphosa also needs to prepare for the State funeral of former deputy president David Mabuza, which will take place on Saturday. Police Minister Senzo Mchunu is at the center of serious allegations involving the collapse of KZN's elite political killings task team. Image: File Meanwhile, tensions are high in KwaZulu-Natal, where Mkhwanazi's allegations have sparked fears of retaliation and unrest. Warnings have been issued that escalating tensions could lead to violence akin to the July 2021 riots. Those events resulted in over 350 fatalities and an estimated R50 billion in damages to the local economy. In the wake of Mkhwanazi's press conference, social media campaigns and reposts under the hastags #HandsOffMkhwanazi; #WeStandWithMkhwanazi and JulyRiots2.0 have raised concerns that digital agitation may lead to social unrest. KZN Premier Thami Ntuli has publicly expressed support for Mkhwanazi, urging Ramaphosa to act without delay. Ntuli's spokesperson, Bongani Gina, stated, "The premier does not believe the matter will escalate into violence, but contingency plans are in place to avoid a repeat of the July 2021 unrest." National Police Commissioner Fannie Masemola, addressed the issue during a private firearm destruction operation in Vanderbijlpark, south of Johannesburg, on Wednesday, saying the damning allegations made by Mkhwanazi have eroded public trust. "Let me unequivocally say the current state of affairs is unprecedented and it is concerning - it requires uncompromised intervention to restore public trust and stability in the organisation." Masemola said he cannot say much about the veracity of the allegations until he has briefed Ramaphosa. Political analyst Professor Nstikelelo Breakfast believes Ramaphosa should put Mchunu on special leave to show that he is taking the matter seriously. "If I were President Cyril Ramaphosa, I would put Mchunu on special leave. He would not be firing him or anything like that, but he would be seen as doing something about the matter," said Breakfast. 'I can't confirm at the moment the validity of Mkhwanazi's accusation against Mchunu…..What I can confirm is that it is the fault of the South African Police…this is a big thing and the president must be seen to be doing something." Breakfast did not rule out Mchunu using the Phala Phala report 'that is under lock and key', against Ramaphosa if he acts against him. 'But I doubt the two subjects Mkhwanazi and Mchunu have enough power to start violence like the July unrest…They don't carry that much power, like Zuma does,' Breakfast said. Another political analyst, Sandile Swana, said Ramaphosa has a long process to go through before making a decision. Political parties are calling for action against the SAPS top brass following KZN provincial police commissioner Lieutenant General Nhlanhla Mkhwanazi's explosive allegations. Image: X "The president has to be briefed by his staff on a number of key areas," said Swana. He suggested that the allegations by Mkhwanazi fall under the Special Investigating Unit's mandate, advocating for a direct SIU investigation over a judicial inquiry. Swana also said there was potential for mismanagement within the police and called for the Public Service Commission, Auditor General or Treasury to investigate tender irregularities and internal controls.
