South Africa urges G20 to act on trade
South Africa has called on G20 nations to demonstrate global leadership and cooperation in addressing pressing challenges, including rising trade barriers, as finance ministers and central bankers convened in Durban. The G20, originally formed to foster collaboration during the 2008 financial crisis, has faced increasing difficulties due to geopolitical tensions, particularly following Russia's invasion of Ukraine and subsequent Western sanctions.
Under the theme "Solidarity, Equality, Sustainability," South Africa's presidency aims to highlight African priorities, focusing on issues such as high capital costs and climate change funding. Finance Minister Enoch Godongwana emphasized the need for strategic leadership and collective action to navigate complex global challenges. However, doubts remain about the G20's ability to reach consensus, given its non-binding agreements and the absence of key figures, including U.S. Treasury Secretary Scott Bessent, who missed his second G20 event this year.
The meeting's agenda included discussions on African debt, development finance, climate transition, and global economic stability, but was overshadowed by concerns over escalating trade tensions, particularly potential U.S. tariffs targeting Europe and BRICS nations. These tariffs, which could reach up to 200% on certain imports, have raised alarms about the risk of further fragmentation in global trade.
Additionally, South Africa advocated for enhanced support for its Just Energy Transition initiatives, but internal divisions within the G20, particularly regarding U.S. policy, have stalled progress on new climate strategies. Canada highlighted the necessity of boosting investor confidence in Africa's burgeoning economy, while South Africa pushed for improvements to the G20's Common Framework for debt relief and increased access to development finance.
