By Saul Molobi
In his address on 26 February 2025 in Cape Town, President Cyril Ramaphosa has urged the G20 Finance Ministers and Central Bank Governors to take decisive and coordinated action to address global economic challenges, including inequality, climate change, and debt sustainability. Speaking at the Cape Town International Convention Centre, he emphasised the need for a resilient, sustainable, and inclusive global economy.
“This meeting today of the G20 Finance Ministers and Central Bank Governors will provide further substance and strategic direction in advancing this collective responsibility,” Ramaphosa stated. He highlighted the G20’s historical role in shaping global economic responses, from the 2008 financial crisis to the COVID-19 pandemic, and its continued stewardship in maintaining financial stability.
A Call for Greater Multilateral Cooperation
Against the backdrop of geopolitical tensions and economic uncertainty, Ramaphosa reaffirmed the importance of multilateralism in preserving global stability. “The erosion of multilateralism presents a threat to global growth and stability,” he warned. “A fair, transparent and inclusive rules-based international order is an essential requirement for economic stability and for sustained growth.”
Ramaphosa stressed that cooperation among G20 nations is critical in addressing pressing issues such as rising debt burdens, slow economic growth, and climate change. “We are not moving quickly enough or boldly enough to address these global challenges,” he cautioned, calling for urgent action to improve livelihoods and safeguard future generations.
South Africa’s Four G20 Priorities
As South Africa leads the G20 Presidency in 2025, Ramaphosa outlined four key priorities aimed at fostering sustainable and inclusive global growth:
1. Strengthening Disaster Resilience and Response
With climate-induced disasters disproportionately impacting vulnerable nations, Ramaphosa called for innovative financing and insurance mechanisms to support disaster prevention and recovery. “Repeated disasters lead to widespread damage of infrastructure, economic activity is disrupted, and livelihoods are destroyed,” he noted, urging international financial institutions, development banks, and the private sector to step up funding efforts.
2. Ensuring Debt Sustainability for Developing Economies
Highlighting the rising debt burdens on low- and middle-income countries, Ramaphosa warned that debt service costs are squeezing vital social services and infrastructure investments. “The combined external debt stock of low-income countries more than doubled in the decade to 2022,” he revealed.
He welcomed the African Leaders Debt Relief Initiative, spearheaded by seven former African Heads of State, and emphasised the need for urgent reform of the multilateral debt framework. “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.”
3. Mobilising Finance for a Just Energy Transition
With the world facing a critical moment in the fight against climate change, Ramaphosa called for an equitable and just energy transition. “Significantly more funding is required to limit global temperature rise in line with the goals of the Paris Agreement,” he asserted.
He pointed to South Africa’s Just Energy Transition Partnership as a model for coordinating funding and stressed the need for greater concessional and grant funding for developing economies. “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.”
4. Harnessing Critical Minerals for Inclusive Growth
Ramaphosa underscored the strategic importance of Africa’s mineral wealth in the global green transition, calling for value-added processing and sustainable industrialization. “We need a G20 framework on green industrialization and investment that promotes value addition to critical minerals close to the source of extraction,” he stated.
He emphasised that mineral-producing nations must benefit the most from the global shift toward renewable energy technologies. “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.”
A Historic Moment for Africa
Hosting the G20 for the first time on African soil, South Africa’s leadership highlights the continent’s rising prominence in global economic and political affairs. “Africa is home to some of the world’s fastest-growing economies. It has a young and rapidly expanding population that is embracing technology and innovation,” Ramaphosa noted.
However, he also acknowledged the continent’s challenges, including climate vulnerabilities, poverty, and high debt levels. He called on the international community to recognize Africa’s potential and invest in its sustainable development. “The Summit’s location underscores the need for African voices to be heard on critical global issues like sustainable growth, the digital economy, and green industrialization.”
Raising Global Ambition
Ramaphosa concluded with a rallying call for action, urging G20 leaders to embrace ambitious and impactful measures. “As we work collectively to build on the progress made in previous years, we must continue to advance our shared goals,” he said. “Let us raise our ambition. Let us lift our gaze to deliver on the promise of growth and prosperity for all countries and for all people across the world.”
With pressing economic and environmental challenges at the forefront, the outcomes of this G20 Finance Ministers and Central Bank Governors Meeting will be closely watched as world leaders navigate the path toward a more equitable and sustainable global economy.