By Lehlohonolo Lehana.
Finance Minister, Enock Godongwana hosted the media briefing on the outcomes of the G20 Finance Ministers. and Central Banks Governors Meeting.
The two-day meeting in Cape Town ended without a communique, with current G20 leader South Africa saying there was not sufficient consensus to issue one.
In his opening remarks at the event, President Cyril Ramaphosa referred to the fractured geopolitical climate and stressed the importance of international cooperation.
“At this time of global uncertainty and escalating tension, it is now more important than ever that the members of the G20 should work together, “Ramaphosa said. “The erosion of multilateralism presents a threat to global growth and stability.”
He said the G20 finance ministers meeting had to address major issues like climate change financing, ensuring debt sustainability for developing countries, and Africa’s need to process its own critical minerals for inclusive growth.
But it appeared the world’s largest economies were not able to find common ground on a number of issues. Godongwana noted this wasn’t the first time.
“The issue of the communique and the absence of it is not something new,” Godongwana said. “To my knowledge, I mean, since the Russia-Ukraine war, it has been difficult to find a joint communique. Now, new differences have emerged on a number of other topics.”
Climate adaptation funding was one of the areas where there was a “difference of opinion,” he said.
The finance ministers meeting was beset with similar problems faced by last week’s G20 foreign ministers meeting in Johannesburg, which laid bare the discord in current geopolitics.
U.S. Treasury Secretary Scott Bessent skipped the event amid a spat with host country South Africa, and after the U.S. criticized the themes around climate change and “solidarity, equality and sustainability.”
The finance chiefs of other large economies, including Japan, India and China also sat it out. However, all of them, including the U.S., sent representation at various levels.
Reserve Bank governor Lesetja Kganyago, who co-hosted the finance track meetings with Godongwana, said a lot had changed and pointed to heightened uncertainty in the global economy.
Godongwana said “most” of the G20 members this week endorsed the work programme for the finance track for this year, which provided the basis for the presidency to work in partnership with international organisations to implement this.
The Cape Town meeting was the first of four finance track meetings which SA will host as this year’s G20 president. The finance track, which brings together central bank governors and finance ministers, is the original form in which the G20 convened 26 years ago to try to restore stability and growth in the wake of the 1998 Asian crisis.
SA has made it a priority to ensure Africa’s voice is heard in the G20 and to shape the group’s agenda to take account of the continent’s challenges. Nigeria and Egypt have now been accepted as permanent invitees to the G20, Godongwana said on Thursday, and SA also invited the five regional economic communities to participate this year.
The G20’s efforts to get a bigger voice for Africa in the major Washington-based international financial institutions go back to 2006, when Australia was president.
The international financial architecture is the subject of one of the finance track working groups, and the G20 is working to achieve bigger, better and more effective multilateral development banks.