Source: Government of South Africa
By Sandile Nene
Prior to 1994, South Africa was a country whose brand image was defined through the entrenched apartheid system. Its architecture was that of being racist, oppressive and fascist in character.
After the first democratically elected government came into power in 1994, it prioritised to change the country’s image as well as to reposition the country’s focus on domestic and global priorities to create a better Africa and a better world. To this end, the country has consistently worked with many partners to foster peace and stability while attracting much needed stability for socio-economic prosperity.
Internally, South Africa has created ‘a rainbow nation’ whose prospect is to foster a cohesive nation; a country that thrives on its diversity as well as being proponents of a need for an inclusive economy that thrives through its people irrespective of race or gender through hosting various international events of the highest calibre.
Today, South Africa’s journey from apartheid to democracy places it in a unique position on the global stage as a trusted bridge between the Global South and the developed North. Our experience on the home front in fostering solidarity, promoting equitable development, and facilitating inclusive dialogue underpins our efforts to reshape the global financial architecture to better serve all nations.
Through our G20 Presidency, South Africa is working to build common ground and make global finance more responsive to the needs of developing economies, particularly those in the African and Caribbean continents. Our engagements have already made significant strides in redefining key aspects of international finance.
At the recent G20 Finance Ministers and Central Bank Governors (FMCBG) meeting held in Durban, we focused global attention on the pressing global finance areas of debt sustainability, inclusive finance, and climate resilience.
One of the central focuses of South Africa’s G20 Agenda is addressing the pressing issue of debt sustainability for low-income countries, especially the 53 countries in the continent. Many African nations are burdened by unsustainable debt levels, often spending more on repayments than on essential services like healthcare and education.
This challenge is made worse by the continued disproportionately high borrowing costs African countries face compared to wealthier nations. These conditions severely restrict their ability to invest in development and achieve the United Nations (UN) Sustainable Development Goals (SDGs).
South Africa has helped drive renewed commitment to tackling debt challenges by promoting greater transparency, data sharing, and collaboration among creditors. We are exploring practical ways to reduce high borrowing costs and to strengthen capital flows into emerging and developing markets.
We are also calling for urgent reforms to the international financial system to provide faster, fairer, just and more effective debt relief. We recognise the limitations of existing mechanisms such as the G20 Common Framework for Debt Treatments, introduced in 2020 to help low-income countries during the COVID-19 crisis.
The framework has been slow to deliver results, excludes many middle-income countries in serious debt distress, and often imposes strict conditions on poor nations that undermine national development priorities.
South Africa is also leading efforts to strengthen financial inclusion. Our G20 Presidency is pushing for a shift from simply giving people access to financial services to ensuring meaningful use and empowerment, especially for small businesses.
Based on our domestic experiences, we believe that real inclusion means empowering individuals and businesses to actively participate in and shape the financial ecosystem. We are also advancing innovation, particularly in digital payments, cross-border transactions, and financial technology, which is key to unlocking growth across the continent.
Alongside this, South Africa is calling for stronger social protection systems, especially in Sub-Saharan Africa where millions still lack basic safety nets. We see investment in health, education, and income support not only as a humanitarian obligation, but as a smart economic strategy that can boost growth and reduce inequality.
Climate change remains one of the most urgent global challenges, particularly for Africa, which is already experiencing severe impacts like floods, droughts, and extreme weather events. At the Durban FMCBG, real progress was made on sustainable finance, including integrating climate adaptation into financial systems, scaling up climate funding, and piloting a Common Carbon Credit Data Model to bring more transparency to carbon markets.
South Africa has prioritised funding for a just transition to green economies, including support for platforms such as the Just Energy Transition Partnership (JETP). This approach is helping our country shift away from coal dependence with strong international financial support.
A major theme of our G20 leadership has been advocating for a stronger voice for developing countries in multilateral development and financial institutions. We are of the firm view that global finance cannot be truly inclusive without fair representation and decision-making power for the Global South.
At the Durban meeting, participants welcomed the analytical work led by South Africa and international partners. Looking ahead, there is strong support for exploring a medium-term G20 framework to support African growth, better align finance and health priorities, and improve pandemic preparedness, prevention, and response.
As the G20 Finance Ministers and Central Bank Governors next reconvene in Washington this October on the sidelines of the World Bank and IMF Annual Meetings, the Durban gathering stands as a blueprint for global economic cooperation.
South Africa has shown that a more just and equitable global financial system is possible. It requires solidarity, fairness, and a shared commitment to leaving no one behind.
*Sandile Nene is the Acting Deputy Director-General for Content Processing and Dissemination in the Government Communication and Information System (GCIS).
