Africa needs an action-oriented agenda to lower borrowing costs over the next 12 to 36 months with a focus on improved data systems, strengthened internal capacity and global finance reform, a recent G20 business summit heard.
High debt service overtook financial flows to developing countries in 2022, meaning that debt service costs exceeded official development assistance, negatively affecting governments budgets to build infrastructure.
Business leaders are recommending that the G20 prioritise imbalance in risk assessment ahead of an annual heads of state summit to be hosted by South Africa in November.
Corresponding working groups have made similar recommendations during South Africas G20 presidency, with Think Tank 20 focusing on reform of the International Monetary Fund and World Bank , while Labour 20 advocated the need for digital sovereignty Youth 20 called for enhanced multilateralism and G20 finance ministers called for revised IMF voting rights .
Standard Bank chief executive Sim Tshabalala, who chairs the G20 finance and infrastructure track, said a focus on the cost of capital has the potential to make a lasting and transformative impact on the economies and people of Africa.