A Cost of Capital Commission which will investigate issues that impair the ability of low- and middle-income countries to access affordable capital is set to be launched under South Africa’s G20 Presidency, said International Relations and Cooperation Minister Ronald Lamola.
“I wish to take this opportunity to announce that under South Africa's G20 Presidency, an ambitious Cost of Capital Commission will be established to investigate the issues that impair the ability of low- and middle-income countries to access sufficient, affordable, and predictable flows of capital to finance their environmentally responsible and socially inclusive development plans,” Lamola said.
The Minister was delivering a virtual address at the Jubilee and Caritas Internationalis Leaders’ Press Conference held at the at Salone San Pio X in Vatican City, on Monday.
The Minister said the Commission will deliver a comprehensive expert review on the issues impacting the cost of capital for developing economies, which could help address future debt sustainability issues and the related fiscal space challenges.
Having taken over the Presidency of the G20 on 1 December, South Africa’s theme for the Presidency is: “Solidarity, Equality, Sustainability.”
In his address, Lamola said South Africa has identified inequality as the most significant threat to our collective future.
“This inequality is most prevalent in the Global South and is manifested through critical challenges such as a lack of predictable and sustainable financing, a dire shortage of capacity building for climate action, and crippling debt that forces many countries to abandon their developmental programs just to service exorbitant debts.
“The situation is so severe that it feels as if entire nations are being suffocated under the weight of these overwhelming burdens.”
The press conference launched the campaigns on debt relief in 160 countries for Jubilee 2025.
The 23 December St. Peter’s Press Conference explains the themes of debt cancellation lifted for special Jubilee Years among faith communities.
The high-level press panel took place ahead of Pope Francis beginning Jubilee 2025 by opening the Holy Jubilee Doors and Calling for global debt relief. The Jubilee will officially end with the closing of the Holy Door in St. Peter’s Basilica, on 6 January 2026.
Lamola added that South Africa acknowledges and appreciates the work of the Catholic Church, under the leadership of His Holiness, Pope Francis, to urge the world to do more to free developing countries from the debt trap, which is causing untold “misery and despair” and depriving the citizens of these countries of their human dignity, stifling their ability to reach their full potential.
“We welcome the launch of debt relief initiatives in 160 countries for Jubilee 2025, which will undoubtedly significantly help alleviate the economic and social distress in these countries,” said the Minister.
Lamola said tackling inequalities to enable developing countries to lift themselves out of the quicksand of debt also requires accelerating reform of the international financial architecture.
“We will use our G20 Presidency to contribute to reinvigorating and strengthening multilateralism and creating consensus around issues that affect our collective future. To effectively respond to global realities, multilateral mechanisms and institutions must be strengthened and reformatted.”
The Minister added that there was hope for the future.
“Indeed, we call on faith leaders from across the globe to continue to guide us with their wisdom, compassion, and deep spirituality to restore hope and trust to the most vulnerable,” he said. -SAnews.gov.za
