President Cyril Ramaphosa has emphasised the importance of the Group of 20 (G20) members working together to overcome unprecedented challenges, including slow and uneven growth, rising debt burdens, persistent poverty and inequality, and the existential threat of climate change.
“We are not moving quickly enough or boldly enough to address these global challenges. We must collectively target a step-change in our efforts to improve the lives of all of our people and protect future generation,” the President said on Wednesday.
Addressing the opening of the first meeting of the Group of 20 (G20) Finance Ministers and Central Bank Governors in Cape Town, the President said at this time of global uncertainty and escalating tension, it is now more important than ever that the members of the G20 work together.
“The erosion of multilateralism presents a threat to global growth and stability. We know from the experience of past decades that a fair, transparent and inclusive rules-based international order is an essential requirement for economic stability and for sustained growth.
“At this time of heightened geopolitical contestation, a rules-based order is particularly important as a mechanism for managing disputes and resolving conflict. It is vital to ensuring that the rights and interests of the vulnerable are not trampled beneath the ambitions of the powerful,” he explained.
The first citizen said one of the greatest impediments to growth, development and stability is the persistence of inequality within and between countries.
“The pursuit of the United Nations Sustainable Development Goal on reducing inequality is as much of an economic imperative as a social imperative. As the G20 we need deliberate and coordinated efforts to focus on inclusive growth based on responsive trade and investment to grow the incomes of poor nations and the poorest in society.
“We need to ensure equal access to opportunities, especially for women and young people. For nations to flourish, equality and prosperity must be available to everyone – regardless of gender, race, religious beliefs or economic status.
“The pursuit of equality is an imperative for wealthy and poor countries alike. That is why South Africa has placed solidarity, equality and sustainability at the centre of its G20 Presidency,” the President said.
Priorities
In line with the original mandate of the G20 to promote strong, sustainable, balanced and inclusive growth, South Africa has identified four priorities for its G20 Presidency.
The first priority is to take action to strengthen disaster resilience and response.
“The increasing rate of climate-induced natural disasters is disproportionately affecting countries that can least afford the costs of recovery and rebuilding.
“When repeated disasters lead to widespread damage of infrastructure, economic activity is disrupted and livelihoods are destroyed,” the President said.
He said innovative financing and insurance mechanisms must be put in place by the global community – including international financial institutions, development banks and the private sector – to scale up funding for disaster prevention and post-disaster reconstruction.
“Our second priority is to ensure debt sustainability for developing economies. In recent years, low- and middle-income countries have seen their levels of sovereign debt and the cost of servicing that debt rise substantially.
“The combined external debt stock of low-income countries more than doubled in the decade to 2022. Debt service costs are increasingly crowding out spending on education, healthcare and other social services, as well as infrastructure needed for economic development,” the President said.
He stressed that the work of the International Financial Architecture Working Group and other working groups will be particularly important in improving the Common Framework for Debt Treatment, accelerating the reform of multilateral development banks, and strengthening capital flows to emerging markets.
“Our G20 Presidency will be addressing the high cost of capital faced by developing economies as one of the main barriers to sustainable growth. The G20 must show leadership in addressing the imbalances that persist in the global economy and filling the significant gap in funding required to achieve the Sustainable Development Goals.
“The third priority of South Africa’s G20 Presidency is to mobilise finance for a just energy transition. Significantly more funding is required to limit global temperature rise in line with the goals of the Paris Agreement, and to do so in a manner that is equitable and just.”
South Africa has pioneered the use of country platforms to coordinate funding through the Just Energy Transition Partnership.
“We continue to advocate for greater concessional and grant funding to support the energy transition in developing economies. G20 member countries should lead the way in demonstrating ambition on climate action in the lead-up to COP30 in Brazil later this year.
“The need to rapidly scale up adaptation funding is particularly important, as those countries which have contributed the least to climate change are now most vulnerable to its effects. We must also scale up the use of innovative financing instruments, improve coordination among funders, and unlock the potential of carbon markets to create new and diverse sources of funding,” the President said.
South Africa’s fourth priority for the G20 Presidency is to harness critical minerals for inclusive growth and sustainable development.
“We need a G20 framework on green industrialisation and investment that promotes value addition to critical minerals close to the source of extraction. We need to promote the development of low-carbon manufacturing value chains which can support decarbonisation while promoting growth.
“As minerals extraction accelerates to match the needs of the energy transition, the countries and local communities endowed with these resources must be the ones to benefit the most,” said President Ramaphosa. - SAnews.gov.za
