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First Post
16-07-2025
- Business
- First Post
Trade, tariff, debt and more: G20 finance ministers have a tough task to deal with at Durban meet
In the G20 finance ministers' meeting in South Africa starting tomorrow, debt stress, development finance, and trade are set to dominate the agenda. The meeting comes at a time when US President Donald Trump's tariffs have upset the world order and rattled countries the world over. read more South African President Cyril Ramaphosa (C) delivers his opening remarks during the G20 Finance and Central Bank Deputies and Ministerial Meeting at the Cape Town International Convention Centre (CTICC) in Cape Town on February 26, 2025. (Photo: Rodger Bosch/AFP) Group of 20 finance officials meet in South Africa from Thursday amid trade tensions, a global economic slowdown and Washington's threat to withdraw from multilateral organisations. President Cyril Ramaphosa has sought to leverage Africa's first G20 presidency to promote an African agenda, with topics including the high cost of capital and climate change. Here are the key issues to be discussed: Debt stress 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. STORY CONTINUES BELOW THIS AD 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. Financing for development 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, US and European grants —accounting for 25 per cent of the region's external financing— face cuts as Washington suspends foreign aid and European capitals redirect funds toward defence. Just energy transition 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. STORY CONTINUES BELOW THIS AD Mobilising funding for climate disasters affecting the Global South was a key agenda item for South Africa's presidency. Trade Trump's tariff threats have disrupted the global economy and the response will dominate the agenda even as US Treasury Secretary Scott Bessent skips the gathering. US 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. Communique 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. (This is an agency copy. Except for the headline, the copy has not been headed by Firstpost staff.)
India Gazette
21-04-2025
- Business
- India Gazette
"PM Modi's leadership is making a difference for India"
San Francisco (California) [US], April 21 (ANI): Union Finance Minister Nirmala Sitharaman on Saturday praised Prime Minister Narendra Modi's leadership during an interaction with the Indian diaspora in San Francisco, saying that the 'visionary leadership' of the Prime Minister and the stability provided by the continuing government are 'making a difference for India.' She emphasised that the Prime Minister has been focused on good governance, technological advancement, entrepreneurship, and renewable energy, delivering results well within the time frame. 'The visionary leadership of Hon'ble Prime Minister Narendra Modi and the continuing government, which gives a sense of support and stability, are making a difference for India. The Prime Minister has been relentlessly pursuing good governance, for opening every opportunity for India, be it new technology, skilling, entrepreneurship, commitments for renewable energy and fulfilling them well within time,' Sitharaman said while addressing members of the Indian community in San Francisco. Her remarks came as part of her official five-day visit to the United States, which began on April 20. She was received upon arrival at the San Francisco International Airport by India's Ambassador to the US, Vinay Mohan Kwatra, and Consul General Srikar Reddy Koppula, along with Finance Secretary Ajay Seth. The visit will include engagements in both San Francisco and Washington, DC. During her two-day San Francisco stop, Sitharaman is set to deliver a keynote address at the Hoover Institution at Stanford University on 'Laying the foundations of Viksit Bharat 2047,' followed by a fireside chat. She will also hold roundtable discussions with major fund management firms and meet with top executives from leading IT companies headquartered in the region. From April 22 to 25, Sitharaman will participate in the Spring Meetings of the International Monetary Fund and World Bank in Washington, DC. She is scheduled to attend the G20 Finance Ministers and Central Bank Governors' Meeting, the Development Committee Plenary, the IMF/World Bank Group's International Monetary and Financial Committee (IMFC) Plenary, and the Global Sovereign Debt Roundtable. On the sidelines, she will also hold bilateral meetings with counterparts from countries including the United States, the United Kingdom, France, Germany, Saudi Arabia, and others, as well as top officials from international financial institutions. Following her engagements in the US, Sitharaman will travel to Peru for her maiden visit from April 26 to 30. (ANI)
