The G20 has outlined a priorities frame for global financial architecture reform that pairs Africa’s push for greater inclusion with a parallel need to strengthen financial systems within the continent, citing persistent challenges around debt sustainability, access to credit, high borrowing costs and inadequate financial infrastructure. The discussion points to imbalances in Africa’s engagement with international capital markets and highlights recent debt distress cases, including Zambia and Ghana. It notes Ghana’s suspension of payments on most of its USD 30 billion external debt in December 2022 and a May 2024 memorandum of understanding with bilateral creditors to restructure USD 5.4 billion, which enabled an International Monetary Fund disbursement of USD 360 million under a USD 3 billion three-year programme. Proposed priorities include stronger national debt management and restructuring frameworks, a more active role for the African Union and African Development Bank in debt negotiations, greater transparency to support investor confidence, exploration of debt-for-climate swaps, and development of pan-African financial infrastructure through digital finance and regulatory harmonisation to support intra-African trade and investment.
G20 2025-01-22
G20 links Africa’s expanded role in the forum to priorities for strengthening African financial systems and debt management
The G20 prioritizes reforming the global financial architecture, emphasizing Africa's inclusion and stronger financial systems. Key issues include debt sustainability, credit access, and financial infrastructure, with Zambia and Ghana's debt distress highlighted. Proposed measures involve improved debt management, enhanced roles for the African Union and African Development Bank, increased transparency, debt-for-climate swaps, and developing pan-African financial infrastructure.