Issues on the agenda at the G20 finance meeting in South Africa
Here are the key issues to be discussed:
Nearly two dozen countries in Africa are already in or at high risk of debt distress, the International Monetary Fund said. Debt-servicing costs crowd out spending on services like infrastructure development, health and education.
Launched in late 2020, the G20 Common Framework is a platform aimed at speeding up and simplifying the process of getting overstretched countries back on their feet. But progress has been slow.
Making the platform more efficient is one target for South Africa. Ramaphosa launched an Africa Expert Panel in March whose role is to galvanise efforts, chief among them debt relief.
Panel chair Trevor Manuel told Reuters it had already begun to make detailed recommendations on improving the framework.
"One of the reforms is that the opportunities in the Common Framework should be available to all middle-income countries as well," said Manuel.
With aid and development-finance cuts and a pivot by wealthy countries to defence spending, traditional funding sources for developing nations have become scarcer. South Africa is looking to shore up favourable finance for poorer nations.
It wants to strengthen and improve the role of multilateral development banks in financing for development. Washington, meanwhile, could potentially withdraw from more global institutions - including these banks.
Some analysts believe Washington's withdrawal from multilateralism could leave a space for China to occupy, but it is unclear if Beijing aims to do that.
Lending to Africa from China has slowed to a trickle leaving an $80 billion financing gap. Meanwhile, U.S. and European grants - accounting for 25% of the region's external financing - face cuts as Washington suspends foreign aid and European capitals redirect funds toward defence.
President Donald Trump's administration has withdrawn from the Just Energy Transition Partnership (JETP) - a key focus for South Africa that is designed to help developing countries transition away from coal to cleaner energy.
Launched in 2021, JETPs aim to funnel money from governments, multilateral lenders and the private sector to renewable energy projects in a way that benefits local communities.
On Monday, the G20's financial stability watchdog said it had developed a new plan to tackle climate risks but it had paused further policy work in light of the U.S. retreat from climate action.
Mobilising funding for climate disasters affecting the Global South was a key agenda item for South Africa's presidency.
Trump's tariff threats have disrupted the global economy and the response will dominate the agenda even as U.S. Treasury Secretary Scott Bessent skips the gathering.
U.S. plans for tariffs on Canada, Europe and Mexico as well as threats to impose further levies on BRICS member countries including China, India, Russia, Brazil and G20 host South Africa, further heighten tensions between the world's largest economy and other G20 nations.
Director General of Treasury Duncan Pieterse said in a statement on Monday that he hoped to issue the first Communique under the South African G20 presidency at the end of the meetings. The G20 was last able to take a mutually agreed stance to issue a Communique in July of 2024.
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