Kganyago asserts Africa's G20 agenda despite tariffs, Bessent absence
US Treasury secretary Scott Bessent skipped the meetings in Durban, marking his second consecutive absence from G20 finance meetings and raising questions about its ability to tackle pressing global challenges.
President Cyril Ramaphosa has sought to leverage Africa's first G20 presidency to promote the African agenda, which also included topics such as the high cost of capital.
'The African issues have been elevated, all of us are talking about those,' Kganyago told Reuters as discussions were ongoing between deputies and other officials, before the two-day meeting gets officially under way on Thursday.
Kganyago emphasised the push for a co-ordinated African payments system to facilitate trade across the continent, a move that could face scrutiny from US President Donald Trump.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
39 minutes ago
- The Citizen
G20 finance downside risks dominate global economic outlook
The global economic outlook is not as rosy as it seemed to be just a few months ago due to geopolitical issues and US tariffs. The downside risks still dominate the global economic outlook, with policy priorities for the G20 finance ministers and central bank governors will focus on building resilience and boosting medium-term growth. Gita Gopinath, the first deputy managing director of the IMF, states in her closing remarks after the third meeting of G20 finance ministers and central bank governors that high levels of policy uncertainty remained a key theme in these discussions. 'But so too did the shared objective to navigate through this uncertainty and seek ways, domestically and collectively, to spur growth.' She says in April the IMF's World Economic Outlook forecast projected global growth of 2.8% in 2025 and 3.0% in 2026, well below the historical average of 3.7%. 'This included significant downgrades to major economies such as the US and China, owing to greater policy uncertainty, trade tensions and softer demand momentum. 'Global headline inflation was projected to decline, but at a slower pace, reaching 4.3% in 2025 and 3.6% in 2026.' ALSO READ: SA to prioritise food security, economic growth in G20 presidency, says Ramaphosa IMF has strong evidence of front-loading ahead of US tariff increases Gopinath pointed out that since April, economic indicators reflect a complex backdrop shaped by trade tensions. 'We saw strong evidence of front-loading ahead of tariff increases and some trade diversion. 'We also saw an improvement in global financial conditions as select trade deals lowered average tariffs. On inflation, cooling demand and falling energy prices point to a continued decline, albeit with variation across countries. 'While we will update our global forecast at the end of July, downside risks continue to dominate the outlook and uncertainty remains high.' Against this backdrop, she says, policymakers should focus on resolving trade tensions and implementing macroeconomic policies to address underlying domestic imbalances. 'This includes restoring fiscal space and ensuring debt is on a sustainable path. 'To maintain price and financial stability, monetary policy must be carefully calibrated to country-specific circumstances and use clear and consistent communications. Central bank independence must be protected. 'Structural reforms remain essential to lift medium-term growth and offset demographic shifts, by boosting productivity, supporting job creation and leveraging new technologies.' ALSO READ: 'Not very pleasing' – Ramaphosa's tough talk to Gauteng ahead of G20 Summit Important to strengthen public finances for global economic outlook Gobinath also emphasised the importance of strengthening public finances. 'The IMF welcomes the renewed focus on domestic revenue mobilisation, which is indispensable for strengthening public finances and helping countries, especially here in Africa, to achieve development goals. 'Our analysis suggests that low-income countries could raise an additional 7% of gross domestic product (GDP) if they achieved their estimated tax potential.' She said the IMF is playing its part by supporting countries in reforming domestic tax policies and broadening tax bases, strengthening administration to improve tax collection and their efficiency and improving tax legal certainty to attract foreign and domestic investment. 'We also support a stronger focus on public spending efficiency, which is vital for investing in sustainable development within tight fiscal constraints. The IMF is helping through governance diagnostics, macro-fiscal framework design, and improvements to public investment management and the management of state-owned enterprises.' She pointed out that although financial conditions have eased since April, trade and geopolitical uncertainty are still elevated and financial stability risks remain in focus. 'Vigilant surveillance and robust supervision remain paramount and recent progress in financial sector oversight must continue, particularly for NBFIs, which now account for more than 50% of the financial sector. 'Improving cross-border payments systems, including through new financial technologies, can help boost growth and strengthen macro-financial stability.' ALSO READ: Deputy Minister warns low-income countries will be hit hardest by geopolitical tensions Godongwana also worried about global economic outlook South Africa's Minister of Finance, Enoch Godongwana, stated that the meeting took place during a period of fragile global economic growth. 'While inflation is gradually moderating and financial conditions have started to stabilise in some regions, uncertainty continues to weigh heavily on global growth prospects. 'Rising trade barriers, persistent global imbalances and new geopolitical risks are significant concerns. Many developing countries, especially in Africa, remain burdened by high and rising debt vulnerabilities, constrained fiscal space and a high cost of capital that limits their ability to invest in their people and their futures.' He warned that technological shifts and climate-related shocks and extreme weather events pushes the achievement of the Sustainable Development Goals (SDGs) by 2030 further out of reach. 'Developing countries face a staggering financing gap of $4 trillion every year. The message from the Fourth Financing for Development (FfD4) Conference in Spain was unequivocal: we must act decisively, choose cooperation over fragmentation, unity over division and action over inertia – before the window to deliver on our shared commitments closes. 'In the face of these complex challenges, the G20 must remain a source of strategic global leadership, cooperation and action.' READ NEXT: Here is how SMEs can take advantage of the G20 and B20 summits
eNCA
4 hours ago
- eNCA
Charting African intellectuals between 1836 and 1914
JOHANNESBURG - Harvard is about to get a lesson in African political thinking and structures. Sanele Ntshingana is heading to Harvard University to participate in the Du Bois Research Institute Fellowship. He's been recognised for his groundbreaking research into African political thinking between 1836 and 1914.
Eyewitness News
19 hours ago
- Eyewitness News
G20: Masondo reiterates importance of cooperation in firing up global economies
JOHANNESBURG - The G20 finance track said member states needed to double down on efforts for growth-oriented macroeconomic policies as global economies adjust to emerging threats. The calls come as the global economy is facing heightened uncertainty and complex challenges, including ongoing wars and conflicts, geopolitical and trade tensions and sovereign debt levels. ALSO READ: G20 finmin meeting ends with first communique agreement under SA's presidency Finance ministers and central bank governors wrapped up their third meeting in KwaZulu-Natal on Friday under South Africa's G20 presidency. Speaking at a media briefing at the close of business, Deputy Finance Minister David Masondo reiterated the importance of cooperation in firing up the global economies. "A renewed pledge was made to strengthen multilateral cooperation to address existing and emerging risks to the global economy."
