The conversion of debt, rather than restructuring or forgiveness, was the key focus at the summit between the African Union (AU) and the European Union (EU) in Luanda, Angola, explained Paulo Rangel in a final statement. He described this approach as a promising option that earned high praise.
Many countries are open to this debt conversion strategy, recognizing it as a viable alternative where outright forgiveness or restructuring is not feasible. Rangel explained that while economic circumstances can vary, making restructuring necessary in some cases, the debt conversion offers added value and eases creditor pressures.
Rangel highlighted the increasing use of debt conversion as an economic development tool, having grown from small but significant beginnings to a more widespread application. This strategy, he emphasized, relieves debt pressure while creating economic value.
The minister cited ongoing programs involving Portugal and two Lusophone countries. Cabo Verde has seen great success with renewable energy projects, turning debt into a tool for environmental modernization and energy autonomy. São Tomé and Príncipe now employ the same strategy, broadening its application to economic transformation beyond environmental transitions.
Rangel affirmed that “many countries are willing to convert debt into investment,” explaining that “the debt, essentially, is forgiven through sectoral investments, offering mutual benefits and opportunities for African economies, including job creation and preservation of companies.”
Today marks the conclusion of the AU-EU Summit, which commenced on Monday, focusing on “promoting peace and prosperity through effective multilateralism.”
This high-level meeting was co-chaired by Angola’s President, João Lourenço, and the European Council President, António Costa. The EU was also represented by European Commission President Ursula von der Leyen, while the AU was represented by African Union Commission President Mahmoud Ali Youssou.
Eighty delegations attended the summit.
The European Union comprises 27 countries, including Portugal, with representation from its Prime Minister and Minister of State and Foreign Affairs.
The African Union consists of 55 nations, including Angola, Cabo Verde, Guinea-Bissau, Mozambique, and São Tomé and Príncipe. Among the AU attendees were 29 heads of state or government or their representatives, including Mozambique’s President Daniel Chapo and Cabo Verde’s Prime Minister Ulisses Correia e Silva, along with Angola’s head of state.
