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TimesLIVE
20 minutes ago
- Business
- TimesLIVE
G20 finance deputies aim for consensus and strong economic statement at Durban meeting
G20 finance deputies are hopeful of reaching a consensus on the remaining sticking points and issuing a strong statement on the global economy as they work on finalising the first communique under South Africa's presidency. The G20 finance and central bank deputies have convened for a two-day gathering at the Capital Zimbali in Durban, which is set to kick-start the rest of the G20 finance track meetings throughout the week. Among the issues the deputies will be engaging on over the two days will be that of finding a collective agreement on the direction of the finance track which they will provide to the finance ministers and central bank governors. Finding that agreement has proved elusive to the deputies in previous meetings, mainly due to their different perspectives on the global economy. 'It's these little ways in which countries have different views about narrating the problem to the global public that often is a source of tension but we are hopeful that we can get a communique now, we aim to work on it,' said SA Reserve Bank deputy governor Rashad Cassim, who co-chairs the meeting with National Treasury director-general Duncan Pieterse Cassim stated that they have managed to make progress in areas while it has proved more difficult to make progress in others. 'The best case scenario would be a communique but if we don't have it we will have a solid shared-summary that will articulate the problems.' He said different views around narrating issues that affect the global economy, like the ongoing conflict in Europe and Asia and climate change priorities, are the main contentious issues left to iron out in this process, though he emphasised that the finance track tries to focus on the 'big financial issues'. 'There are generally few issues about how you articulate the global economy. Countries may have differences on whether the conflicts in the Middle East, Russia and Ukraine have an impact on the economy. There will be different perspectives on how you think about that so getting consensus on how you articulate that kind of narrative is one area,' he said. 'Other areas that are highly contested (are) around the extent to which we're to deal with climate change; how much emphasis we put on climate transitions versus how much emphasis we put on climate adaptation.' Pieterse said recent discussions on virtual platforms about drafting the communique have been generally positive in the past week. 'We really want to thank the G20 members for very constructive inputs and engagements thus far, which started last week virtually, and we believe that those engagements have set a very strong foundation for our discussions over the next two days. We are very pleased with the collaborative spirit shown during the virtual discussions, and we believe that we are able to achieve agreement in most of the areas, which will enable us to provide the finance ministers and central bank governors with an opportunity to achieve the first communique under South Africa's presidency.' Pieterse noted that the meeting came at a time when the global economy was navigating uncertainty, marked by resilience in some areas but also significant challenges in others, including uneven growth trajectories, elevated debt levels and inflationary pressures, and implications of tightening financial conditions. 'At the same time, various long-term transitions including digitalisation, climate finance and demographic shifts are reshaping the foundations of our economies.' Cassim shared similar sentiments, adding that these situations underscore the importance of G20 meetings. 'G20 works best when there is an economic crisis: it worked particularly well during the great financial crisis and during Covid-19 where countries collectively could agree on regulations and transfer of resources to developing countries.' Carrim also weighed in on the potential impact of the tariff uncertainty and the global trade disruptions as a result of the tariffs imposed by the US. 'What the uncertainty does has two-sided problems. It means at a time when we need growth to be stimulated, tariff uncertainty has an effect in that it creates supply chain issues and uncertainty for inflation, though at this stage it's the tariff imposer that has to deal with the inflation more than the countries that are victims of those impositions.' Despite those challenges, Carrim added that US delegates are present and have been actively participating in the communique process. 'Remember countries have different views and you have to find common ground. We had a troika with them. They present their views, as do others, and the discussions have been very constructive.' Along with the first session of drafting a communique, Monday's meeting saw an update from the Council of Europe Development Bank (CEB) on the multilateral development bank's monitoring and reporting framework and a pandemic response financing simulation exercise facilitated by the World Bank. From Tuesday, the International Monetary Fund and the World Bank give updates on the global sovereign debt round-table. The next session will see former finance minister and current chairperson of the Africa Expert Panel Trevor Manuel give updates on the work of the panel. 'We will be getting an update from minister Manuel on this so that we can ensure that we align African priorities with the global economic reform efforts that we are discussing in the G20,' said Pieterse.
Coin Geek
2 hours ago
- Business
- Coin Geek
South Africa intensifies digitalization ahead of G20 Summit
Getting your Trinity Audio player ready... In November, South Africa will host the world's most powerful leaders at the G20 Leaders' Summit in Johannesburg, marking the first time the meeting has been held in Africa. As the summit approaches, the South African government is intensifying its push for an inclusive digital economy amid calls from African leaders to champion the continent's cause. In its most recent initiative, South Africa launched the G20 Tourism Hackathon, tasking local innovators with solving prevailing tourism challenges using technology. The three-day event focused on climate-resilient tourism and using the latest tech to empower small and medium enterprises (SMEs) within the sector. Tourism is one of South Africa's biggest industries, accounting for 9% of its $418 billion gross domestic product (GDP) last year and employing over 11% of the workforce. The country ranked fourth behind Tunisia, Egypt, and Morocco, with nine million visitors, who brought in over $7 billion. The hackathon winners will present their ideas at the G20 Tourism Ministers' Meeting in September. Beyond the hackathon, the government launched the G20 Tourism Community Outreach in the Northern Cape, its largest province by land area. The initiative forms part of the country's commitment to the four G20 tourism pillars: improved connectivity, financial access, building resilience, and SME innovation. It provides a platform for local businesses to interact with G20 experts, policymakers, and delegates. The G20 has promoted tourism as one of the key pillars of change, from promoting cultural exchange to employing millions of people. Tourism is also billed as one of the best ways to address environmental challenges as it creates economic incentives to protect nature and directly supports conservation through the revenue it generates. Beyond tourism, African leaders have called South Africa to utilize its G20 presidency to push for the continent's digital transformation. Some, like the African Director at the Gates Foundation, Paulin Basinga, say this presidency needs to result in significant gains in advancing Africa's digital public infrastructure. Rennie Naidoo, a professor at the University of the Witwatersrand, says South Africa's leadership 'is a rare opportunity for Africa and other emerging economies to shape the next chapter of the digital age on their own terms.' Emerging economies have long been spectators in the tech world, with all the solutions being developed by, and disproportionately favoring, the developed economies. Even with artificial intelligence (AI), the United Nations says over 120 countries have been left out of the conversation. The agency says that only a few countries will benefit from the $4.8 trillion AI economy, and that the tech could further widen disparities for the Global South. Morocco partners UNDP to accelerate digital transformation In North Africa, Morocco has signed an agreement with the United Nations Development Programme (UNDP) to advance inclusive digital transformation in the country and in other Arab States. Under the agreement, the two will promote the responsible use of AI, advance digital public services, and develop regulatory frameworks that foster digital transformation in the country. The two partners view digital transformation as a 'powerful enabler of sustainable development and regional integration,' commented Marina Walter, the UNDP's deputy director for Arab States. 'Morocco is demonstrating great leadership not only in advancing its national digital agenda but also towards helping to shape a collaborative, future-oriented digital ecosystem across the Arab States and African regions—one that is inclusive, resilient, and capable of delivering real impact,' she added. According to the UN, Internet penetration in Africa has increased from 25% in 2019 to 38% in 2024. In Arab States, it has jumped from 29% in 2012 to 70%. However, despite the increased penetration, its impact is uneven, with most countries facing systemic challenges that limit the benefits for the people. This includes poor and fragmented infrastructure; in AI, for instance, only 5% of the continent's talent has access to the computational power it needs to build applications effectively. Additionally, 80% of the continent's data is stored offshore. The new agreement was signed on the sidelines of the inaugural National Forum on Artificial Intelligence, which brought together Moroccan government officials, innovators, and global experts to discuss the future of AI. Watch: Boosting financial inclusion in Africa with BSV blockchain title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Zawya
3 hours ago
- Business
- Zawya
South Africa roots for relaxed global bank rules to allow African lenders fund mega projects
South Africa now says it will use its position as the President of the G20 to push for the relaxation of stringent capital requirements for banks globally, in a bid to allow African banks much more wiggle room to lend to the continent's infrastructure needs. The Group of Twenty (G20) is an international forum comprising both developing and developed countries that seeks to find solutions to global economic and financial issues. South Africa assumed the presidency of the G20 on December 1, 2024, taking the mantle from Brazil, and will be hold it until November 30, 2025 under the theme 'Solidarity, Equality and Sustainability'. Sim Tshabalala, the co-chair of the Business 20's Finance and Infrastructure Taskforce, which is placed under the G20 umbrella, and chief executive of South Africa's largest lender, Standard Bank, says there is a pressing need for Africa's banks to step in and plug the continent's $85 billion infrastructural gap. Mr Tshabalala says there is a need to relax the stringent capital requirements attached to the globally recognised Basel III standards.'South Africa has the privilege to be the President of the G20 and under the G20 you have the B20 which exists to support the outcomes that will be in the communique that will be issued by the G20. Africa needs $170 billion a year for infrastructure, but can only raise $85 billion, where is the remaining $85 billion going to come from? It will come from making it easier for the private sector to lend,' he said at the second edition of the Africa Unlocked Summit in Cape Town, South Africa.'One of the recommendations we are making is that the Basel III rules need to change so that the risk weighted assets that one holds result in you holding less capital. If you are holding less capital, you will be able to do more projects.'Basel III regulations are an internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the fragility experienced in the global banking system during the 2007-09 global financial crisis. Under the rules, banks determine how much capital they need to retain by assigning a risk weighting to every asset they hold. Risk-weighted assets essentially refer to a bank's assets adjusted to reflect their level of risk. Basel III requirements are seen as challenging the ability of African banks to lend towards infrastructure due to the increase in the minimum amount of capital that banks are required to hold based on their assets and loans. Despite the call for Basel III reform, South Africa says it will not be a blank cheque for governments to use the banking sector capital to underwrite their infrastructure needs.'The other recommendation is in reducing the cost of capital and governments need to be more transparent and improve their fiscal and monetary management as well as their investor relations,' Mr Tshabalala said.' © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
Bloomberg
4 hours ago
- Business
- Bloomberg
South Africa Aims to Forge G-20 Accord Despite US Enmity
South Africa expressed confidence that it can get finance ministers and central bank governors from the Group of 20 nations to agree on a communique for the first time since it assumed the leadership of the bloc, despite differences between the US and its other members. Discussions in the lead-up to a meeting at a resort near the eastern port city of Durban this week laid a strong foundation for consensus to be reached, Duncan Pieterse, the director-general of South Africa's National Treasury, said in an opening address to officials on Monday.
Bloomberg
6 hours ago
- Business
- Bloomberg
South Africa Aims to Forge G-20 Accord Despite Ongoing US Enmity
South Africa expressed confidence that it can get finance ministers and central bank governors from the Group of 20 nations to agree on a communique for the first time since it assumed the leadership of the bloc, despite differences between the US and its other members. Discussions in the lead-up to a meeting at a resort near the eastern port city of Durban this week laid a strong foundation for consensus to be reached, Duncan Pieterse, the director-general of South Africa's National Treasury, said in an opening address to officials on Monday.
