South Africa Pushes for G-20 Debt Review

South Africa is urging the G20 to reassess its debt restructuring framework for poor nations, emphasizing that it fails to adequately address the severe debt burdens faced by these countries. Finance Minister Enoch Godongwana highlighted the need for a more effective review of the Common Framework, as current debt servicing costs outstrip essential spending on health in over 40% of African nations. The external debt of Africa has surpassed $650 billion, with debt servicing costs projected at nearly $90 billion in 2024. During the G20's initial meetings under South Africa's presidency, there was broad consensus on prioritizing debt sustainability for low-income countries and establishing a cost of capital commission. Additionally, officials underscored the importance of large-scale investments to meet Sustainable Development Goals and enhance disaster resilience in light of climate change. The discussions also aimed to bolster cooperation among member nations to tackle these pressing socio-economic challenges.