Egypt urges debt-for-climate swaps to accelerate sustainable development in Africa - Foreign Affairs

Al-Ahram Weekly

22-02-2025

Egypt's Deputy Foreign Minister Abu Bakr Hefny Mahmoud highlighted the necessity of debt-for-climate swaps in driving sustainable development across Africa at the Group of Twenty (G20) foreign ministers meeting in Johannesburg, South Africa.
According to an Egyptian foreign ministry statement, Mahmoud affirmed Egypt's commitment to working alongside South Africa to advance their G20 presidency priorities in this area.
The G20 is an annual meeting of twenty economic world powers, representing 85% of global GDP, 75% of trade, and around 80% of the population. The forum was conceived in the wake of the Asian Financial Crisis of 1997–98 and has held annual meetings since 1999.
The statement noted that Mahmoud stressed the importance of enhancing financial access for developing nations, specifically through measures such as 'debt-for-climate swaps, utilizing modern technologies like artificial intelligence, and strengthening water and food security. "
During the two-day meeting on Thursday and Friday, Mahmoud acknowledged the prevailing global challenges - particularly the rise in unilateral and protectionist policies - and called for enhanced international solidarity and cooperation.
He urged the G20 to address the imbalances in the global financial system, focusing on expanding access to affordable financing, and cautioned against forcing developing nations to choose between climate action and sustainable development.
Furthermore, Mahmoud advocated for ensuring that international financial institutions and multilateral development banks operate fairly and offer solutions tailored to the needs of developing countries.
He underscored the necessity of managing debt burdens to maintain macroeconomic stability in low and middle-income nations and prevent a new global debt crisis.
Egypt has repeatedly called for setting up a mechanism to ease the debt burden on African nations, given the economic impacts of successive crises on the continent.
Africa is home to nearly one-sixth of the world's population, numbering almost 1.4 billion people. The continent has witnessed its external debt rise to over $650 billion, with debt servicing costs approaching nearly $90 billion in 2024.
Egypt is participating in G20 meetings as a guest country upon invitation from South Africa, the current G20 president, to join the global event's meetings.
South Africa's presidency will end in November 2025.
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