On 9 September 1999, an Extraordinary OAU Summit was held in Libya. The Sirte Declaration was adopted by the Heads of State and Government at the conclusion of the Summit. As part of the Declaration, President T Mbeki and President A Bouteflika of Algeria were mandated to engage Africa's creditors on the total cancellation of Africa's external debt. President Mbeki has successfully utilised various opportunities since then, during bilateral visits and at regional and multilateral meetings, to present an economic and social development agenda for Africa. This global initiative endeavours to change the place of Africa in the global economy.
Debt is one of the major issues emphasised in the process of discussing what needs to be done.
Debt is not seen in isolation, but as a vital part in an overall, enhanced and coordinated package of measures, aimed at developing a new world agenda to integrate the developing world into the global economy. The slow pace of debt relief remains a critical obstacle in this process. Pursuant to the Sirte and South Summit mandates, President Mbeki, along with Presidents Bouteflika and Obasanjo, went to the G8 Summit in Japan during July 2000 to engage the G8 leaders on the issues of concern for the South, particularly the debt issue. The matter was also raised during the 2000 UN Millennium Summit. Debt cancellation, coupled with the efficient utilisation of scarce financial resources and macro-economic stabilisation policies, is a fundamental condition for growth, development and the eradication of poverty.