As delegates gather in Johannesburg later this month for the G20 Summit, the pressing question for Africa is whether its leaders will seize the moment to embed African priorities into global decision-making. The African Union AU joined the G20 as the 21st member at the 2023 summit in India and was officially represented at the 2024 summit in Brazil. With this year's summit taking place on African soil for the first time, expectations are building that Africa finally has a chance to negotiate for a fairer deal on critical issues like debt relief, climate finance and inclusive growth.
South Africa's G20 presidency is advancing an ambitious agenda aimed at tackling some of the continent's most entrenched economic challenges. Key elements of its agenda include strengthening disaster resilience through faster response and reconstruction, advancing debt sustainability for low-income countries, lowering borrowing costs for African sovereigns, and unlocking climate finance for a just energy transition. South Africa is also championing the strategic use of Africa's vast critical minerals reserves-including lithium, cobalt, and rare earths-as catalysts for industrialisation and job creation. The aim is to accelerate the continent's transition from raw material exporter to value-added producer.
On issues such as global financial reform, there is broad support for the measures proposed by South Africa from countries in the "global south". A case in point is the proposed "Cost of Capital Commission", a flagship proposal that has been warmly received by many developing nations reeling under the weight of costly debt. If formally established, the commission will produce a comprehensive expert review of the factors driving up the cost of capital for developing economies. It will also recommend reforms that could expand fiscal space and improve debt sustainability. Some ideas that are already gaining ground include proposed amendments to credit rating methodologies, prudential regulations, and the data sets used by credit analysts.