South Africa’s G20 presidency has faced diplomatic setbacks — including the US withdrawal and China’s leader skipping the summit — but it has succeeded in bringing African debt and green finance to the centre of the global conversation. Analysts note that 17 African countries had net capital outflows last year, and many now spend more on interest than on health or education as climate shocks worsen. Advocates say cheaper, longer-term financing and IMF reform are possible at the G20 level, but US political resistance could limit outcomes.
Despite Diplomatic Setbacks, South Africa’s G20 Presidency Puts African Debt and Green Finance in the Spotlight
South Africa’s G20 presidency has faced diplomatic setbacks — including the US withdrawal and China’s leader skipping the summit — but it has succeeded in bringing African debt and green finance to the centre of the global conversation. Analysts note that 17 African countries had net capital outflows last year, and many now spend more on interest than on health or education as climate shocks worsen. Advocates say cheaper, longer-term financing and IMF reform are possible at the G20 level, but US political resistance could limit outcomes.
12:09 AM, 11/19/2025Economy
South Africa’s G20 push survives high-profile absences
South Africa’s government has weathered a difficult fortnight as it finalises preparations for the G20 summit in Johannesburg — the first G20 meeting to be held on African soil. The late withdrawal of the United States and the absence of China’s President Xi Jinping dimmed expectations that the summit would be a triumphant moment of global leadership for President Cyril Ramaphosa and for the continent.
Achievements despite setbacks
Even so, the presidency has registered important wins: it has elevated Africa’s most pressing economic and climate challenges onto the global agenda. In particular, South Africa has focused attention on the need to redesign approaches to debt sustainability for low-income countries and to mobilise finance for a just energy transition.
The continent faces a narrowing policy space driven by high debt burdens, increasing climate shocks and shrinking development finance. Last year, 17 African countries experienced net capital outflows — paying foreign creditors more in debt service than they received in new financing — a direct drain on development.
Many African governments now allocate more to interest payments than to health or education, even as climate-related extreme weather damages harvests, exacerbates food insecurity and erodes livelihoods.
"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 the University of Pretoria and a senior G20 adviser to South Africa.
Hannah Ryder of Development Reimagined concurs that South Africa has successfully spotlighted debt priorities, but she warns the US withdrawal could still blunt the summit’s outcomes. "Making African debt really cheap and long term — which is what African governments want, not even cancellation — is entirely plausible from a G20 perspective," she said. "Reforming the IMF is also feasible in principle, but political will is lacking: the US can block changes, and when Washington signals resistance, other members often follow suit."
What’s at stake at the summit
In the days before the summit, South Africa is pushing concrete proposals on debt sustainability frameworks, scaled-up green finance mechanisms and improved regional disaster response. These priorities aim to secure long-term financing that supports low-income countries’ ability to invest in health, education and climate resilience without being overwhelmed by short-term debt service obligations.
Whether the G20 can convert raised awareness into binding commitments will depend on negotiations among major powers and on bridging political differences that the recent diplomatic absences have made more visible. Still, the presidency’s success in reframing the conversation marks a notable diplomatic achievement for South Africa and for advocates of equitable climate and development finance.