South Africa, which assumed the G20 presidency from Brazil on December 1, is focusing heavily on reducing the debt burden of developing nations, particularly in Africa. As part of its leadership, South Africa aims to push for better credit terms for the continent.
International Relations and Cooperation Minister Ronald Lamola, addressing the ongoing Sherpas’ two-day meeting in Johannesburg, emphasized the disproportionate cost of capital faced by African nations compared to developed countries. He called for revolutionary solutions to lower interest rates on loans, arguing that Africa should not face higher rates than industrialized nations for similar loans.
“Africa, like many developing countries, continues to struggle with the aftermath of the COVID-19 pandemic. The challenge of poverty and weak economic growth persists, especially in Africa,” Lamola said. “We need to ensure that our nations are not penalized with higher interest rates as they work to recover and grow.”
The focus on reducing the cost of capital for Africa is expected to remain a central topic during South Africa’s G20 presidency. At the Sherpas’ meeting, one participant noted that securing low-interest loans for African countries to develop rare earth metal and energy transition technology projects is a primary objective for the upcoming year.
With South Africa’s leadership, the G20 is expected to take significant steps in addressing the financial challenges faced by developing nations and fostering sustainable growth across the African continent.
