Members of the G20 have pledged to deal with the mounting debt pressures in low and middle-income economies amid the worldwide monetary turbulence.
That is based on Deputy Finance Minister Dr David Masondo who addressed a media briefing on Friday following the third G20 Finance Ministers and Central Financial institution Governors (FMCBG) Assembly held in Kwa-Zulu Natal this week.
Creating and rising economies – notably these in Africa – are grappling with excessive and rising debt vulnerabilities, shrinking fiscal flexibility and excessive borrowing prices.
“(Members)…reaffirmed their dedication to additional strengthen the implementation of the G20 Widespread Framework. To present impact to this, the G20 FMCBG endorsed the G20 Notice on Classes Realized from the Preliminary Widespread Framework Circumstances and the G20 Notice on Steps of a Debt Restructuring below the Widespread Framework.
“These paperwork have been revealed on the G20 web site. As well as, truth sheets on the Widespread Framework nation instances for Chad, Zambia and Ghana have additionally been revealed on the G20 and Paris Membership web sites to enhance data sharing,” he mentioned.
WATCH | Closing media briefing
In additional discussions, the members additionally acknowledged the G20 Notice on Particular drawing rights (SDRs) which, the Deputy Minister mentioned, “highlights the achievement of exceeding $100 billion in voluntary channelling of SDRs or equal contributions for international locations in want.”
The pledges to this at the moment stand at some $113.8 billion coming from 35 international locations.
“Members additionally underscored the necessity for enhancing the illustration and voice of creating international locations in decision-making in MDBs (Multilateral Improvement Banks)and different worldwide financial and monetary establishments.
“Members recognised the relative resilience of capital flows in Rising Market and Creating Economies (EMDEs) regardless of heightened international coverage uncertainty – underscored by sturdy macroeconomic fundamentals and sound coverage frameworks.
“Additionally they highlighted the rising affect of non-bank monetary establishments (NBFIs) and pressured the significance of gaining a deeper understanding of their affect on these flows. Members additional emphasised the importance of structural reforms in fostering long-term sustainable capital flows to EMDEs,” mentioned the Deputy Minister.
Vitality transitions
Relating to vitality transitions, Masondo mentioned throughout the assembly, Ministers and central financial institution Governors thought-about key suggestions for “enhancing collaboration amongst Vertical Local weather and Setting Funds, Multilateral Improvement Banks, Nationwide Improvement Banks and the non-public sector”.
“Members reaffirmed the urgency of scaling up financing for adaptation and simply transitions and mirrored on key suggestions rising from a complete evaluation undertaken by a number of information companions. These included steering on integrating adaptation into voluntary transition planning, addressing insurance coverage safety gaps, scaling financing mechanisms, and strengthening enabling setting.
“(They) additionally acquired an replace on the work of the Local weather Knowledge Steering Committee, which has developed a set of ideas for the event of a Widespread Carbon Credit score Knowledge Mannequin geared toward selling interoperability and enhancing transparency of carbon markets.
“They famous that the draft knowledge mannequin is at the moment present process a public session with each the non-public and public sectors,” the Deputy Minister mentioned.
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The total communique of the third FMCGB assembly is on the market at https://www.treasury.gov.za/comm_media/press/2025/3rdpercent20G20percent20FMCBGpercent20Communique.pdf and on the g20.org web site.
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