South Africa’s government has had a tough few weeks on the world stage as it gears up for the G20 summit taking place here in Johannesburg this weekend — the first on the African continent. The dramatic withdrawal of the US and the no-show from China’s Xi Jinping has taken some of the shine off what was expected to be a triumphant week of global leadership for President Cyril Ramaphosa, and Africa in general.
But it has not all been for nothing. South Africa’s G20 leadership has raised the profile of key challenges facing the continent: In particular, rethinking how to ensure debt sustainability for low-income countries, and how to mobilize finance for a just energy transition. It’s clear Africa’s future is being squeezed by a mix of debt, climate pressure, and shrinking development finance options. Last year, 17 African nations watched money flow out faster than it came in, paying foreign creditors more than they received in new financing — a net drain on development.
Most Africans now live in countries that spend more on interest payments than on their health or education budgets, even as climate shocks are hitting harder and more often, battering crops, deepening hunger, and eroding human wellbeing.“South Africa has been very effective in raising awareness of the African debt crisis and its dire impact on African countries,” writes Danny Bradlow, a professor at University of Pretoria, and a senior G20 advisor to South Africa.