Ramaphosa says G20 cooperation crucial for economic stability amid rising geopolitical tensions

South Africa President Cyril Ramaphosa says the G20 must work together to address global uncertainty and tensions, which threaten economic growth and stability.

Ramaphosa spoke on Wednesday at the G20 meeting of finance ministers and central bank governors in Cape Town, South Africa.

South Africa took over the G20 leadership at the Rio de Janeiro summit in November 2024.

Speaking on global uncertainty and escalating tensions at the meeting, Ramaphosa said 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,” he said.

“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 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.”

‘SOUTH AFRICA’S G20 PRIORITIES FOCUS ON RESILIENCE, DEBT SUSTAINABILITY’

Ramaphosa said South Africa’s G20 presidency will prioritise disaster resilience, debt sustainability and climate action.

“Our first priority is to take action to strengthen disaster resilience and response,” he said.

“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.

“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.”

The South African president said debt sustainability for developing economies is also a key priority.

“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,” he said.

He pledged that the G20 would work to improve the common framework for debt treatment, accelerate reforms in multilateral development banks and strengthen capital flows to emerging markets.

Ramaphosa said South Africa would also push for financing a just energy transition.

“G20 member countries should lead the way in demonstrating ambition on climate action in the lead-up to COP30 in Brazil later this year,” he said.

“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.”

He also called for a G20 framework on green industrialisation, stating that mineral-rich countries should benefit from value addition to their resources.

Meanwhile, several key G20 finance ministers, including those from the US, China, Japan, India, and Canada, were reportedly absent from the meeting.

Scott Bessent, US treasury secretary, announced his absence on X a few days earlier, citing “obligations in Washington DC”.

Marco Rubio, US secretary of state, also skipped the G20 meeting of his counterparts in Johannesburg.

Jörg Kukies, German finance minister, downplayed concerns over the absences, saying, “It is not unusual for individual ministers to be absent”.