President Cyril Ramaphosa said that economic cooperation is the main focal point of the G20 Finance Ministers and Central Bank Governors Meeting.
Ramaphosa welcomed guests to the meeting that is being held in Cape Town this week.
He said that this meeting is the first of its kind in South Africa and will focus on the thematic areas of the global economy, debt, infrastructure, joint finance and health task force, international taxation, finance sector issues, and sustainable finance.
“This meeting of G20 Finance Ministers and Central Bank Governors, like those that have come before, carries a weighty responsibility. It needs to forge consensus on the actions we must take collectively to build a global economy that is more resilient, more sustainable and more equal,” he said.
The president said that one of the greatest impediments to growth, development and stability is the persistence of inequality within and between countries.
“As the G20 we need deliberate and coordinated efforts to focus on inclusive growth based on responsive trade and investment to grow the incomes of poor nations and the poorest in society. We need to ensure equal access to opportunities, especially for women and young people.”
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This G20 finance meeting will highlight four main priorities, according to Ramaphosa.
There are:
- Action to assist in natural disasters and disaster prevention
- Debt sustainability for developing countries
- Mobilising finance for a just energy transition
- Harnessing critical minerals for inclusive growth of developing countries
Debt Treatment
The president maintained that debt management in particular is a major priority for South Africa.
He said that middle-income countries have seen their levels of sovereign debt and the cost of servicing that debt rise substantially.
“The combined external debt stock of low-income countries more than doubled in the decade to 2022. Debt service costs are increasingly crowding out spending on education, healthcare and other social services, as well as infrastructure needed for economic development,” he explained.
Ramaphosa noted that the work of the International Financial Architecture Working Group and other working groups will be particularly important in improving the Common Framework for Debt Treatment, accelerating the reform of multilateral development banks, and strengthening capital flows to emerging markets.
“Our G20 Presidency will be addressing the high cost of capital faced by developing economies as one of the main barriers to sustainable growth.”
The president said that he met with seven former African Heads of State and Government, yesterday, and noted that these leaders have started the African Leaders Debt Relief Initiative.
This initiative focuses on the challenges that many African countries are facing in servicing their national debt.
“They would like to see greater urgency in addressing the debt and solvency challenges many countries face and determine clear solutions to mobilise low-cost financing for development. I welcome and support their endeavours.”
Lastly, Ramaphosa said that the G20 must show leadership in addressing the imbalances that persist in the global economy and filling the significant gap in funding required to achieve the Sustainable Development Goals.
“The upcoming Financing for Development Conference in Spain this June will be an important opportunity to advance this agenda.”
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