The G20 bloc must remain a source of leadership and action in development, as the world economy and countries continue to face a multitude of challenges.
This is the word from Finance Minister Enoch Godongwana, who delivered the opening remarks at the 3rd G20 Finance Ministers and Central Bank Governors Meeting in KwaZulu-Natal on Thursday.
“We meet at a time of a fragile global economic growth. While inflation is gradually moderating and financial conditions have started to stabilise in some regions, uncertainty continues to weigh heavily on global growth prospects.
“Rising trade barriers, persistent global imbalances and new geopolitical risks are… concerns,” he said.
Furthermore, many developing countries – particularly those in Africa – remain “burdened by high and rising debt vulnerabilities, constrained fiscal space and high cost of capital”, which limits their ability to invest in their economies.
“Technological shifts, especially in artificial intelligence and digital finance, offer tremendous potential but also demand robust governance and coordinated action to harness to the opportunities, mitigate risks such as job displacement, and bridge digital divides towards inclusive growth.
“At the same time, climate-related shocks and extreme weather events are increasing in frequency and severity worldwide, impacting lives, livelihoods and economic stability. The cumulative impact of these cascading challenges is pushing the achievement of the Sustainable Development Goals (SDGs) 2030 further out of reach,” Godongwana said.
The Minister noted that developing countries, particularly those in Africa, face a “staggering” yearly financing gap of some $4 trillion for sustainable development.
“The message from the 4th Financing for Development Conference in Spain was unequivocal: We must act decisively, choose cooperation over fragmentation, unity over division and action over inaction before the window to deliver on our shared commitment closes.
“In the face of these complex challenges, the G20 must remain a source of strategic global leadership, cooperation and action. We must extend our efforts if we are to reach our true potential as a collective, to enable us to deal decisively with economic, environmental, developmental and social challenges that plague… low-income countries in other regions and small developing States.
“We have a critical role to play in revitalising and strengthening multilateralism by fostering inclusive dialogue, reinforcing rules-based cooperation and driving collective action in global challenges that no country can solve alone,” Godongwana said.
He called on the delegates to approach discussions at the meeting to with “open minds, collective purpose and a determination to deliver progress”.
“The need for bold, cooperative leadership has never been greater,” Godongwana said. – SAnews.gov.za
