Deputy Minister Alvin Botes: G20–Africa High-Level Dialogue on Debt Sustainability, Cost of Capital, and Financing Reforms

Programme Facilitator,
HE Mrs Francisca Tatchouop Belobe, Commissioner for the Economic Development, Trade, Tourism, Industry and Minerals Department of the African Union Commission,
HE Ambassador Claver Gatete, Executive Secretary, United Nations Economic Commission for Africa (UNECA),
Distinguished Panellists,
Your Excellencies, Permanent Representatives to the African Union and Ambassadors based in Ethiopia,
Ambassadors representing G20 countries and guest countries of our G20 Presidency,
Distinguished representatives of International Organisations, civil society and academia,
Distinguished guests,
Ladies and Gentlemen,

It is a privilege to address you today at this pivotal G20-Africa High-Level Dialogue on Debt Sustainability, Cost of Capital, and Financing Reforms.

Allow me from the onset to express our sincere appreciation to the African Union for co-hosting this important gathering here in Addis Ababa—the home of our glorious continental organisation the African Union. Our hosting of this event today fulfils the promise made by our political leadership at the AU Summit here in Addis Ababa in February this year, that South Africa will host one of its G20 Presidency at the home of the African Union.

Following the African Union’s inclusion in the G20 in 2023 at the New Delhi Summit, we are now working hand-in-hand with the African Union to amplify Africa’s voice in global economic governance, whilst ensuring that the development priorities of the African Continent and the Global South find expression firmly onto the agenda of the G20.

The South African G20 Presidency has reached its final stages. Both the Sherpa and Finance Track Working Groups have concluded their technical deliberations and Ministerial Meetings. To date, 130 of the 133 official G20 meetings have taken place. The 4th Sherpa Meeting, Social Summit and Leader’s Summit will conclude South Africa’s calendar of meetings and Presidency in Johannesburg in two weeks’ time.

Our G20 Presidency commenced with negotiations of the G20 Leaders’ Declaration. We hope that the Leaders’ Declaration will be finalised during the 4th Sherpa Meeting which will precede the Summit starting from 16 November 2025. This draft Leaders’ Declaration focuses on the global development agenda, South African G20 Presidency four overarching priorities: the three Task Forces, key deliverables from the various Working Groups, as well as issues emanating from the Finance Track meetings.

Distinguished Guests,

When South Africa took over the Presidency of the G20 last year amidst a precarious geopolitical climate, its response was that the world needs more Solidarity, Equality and Sustainability, which is the theme of South Africa’s G20 Presidency. At the core of this theme is the African philosophy of Ubuntu which resonates with the slogan of Agenda 2030 and related SDGs, namely: Leaving No One Behind.

Today’s dialogue is both timely and urgent. It addresses one of our foremost priorities: ensuring debt sustainability for low-income countries.

The policy space available to developing countries is significantly constrained by their debt servicing obligations. For example, the total public debt of African countries in 2022 was US$1.8 trillion, an increase of 183% since 2010, with many countries paying more for debt costs than critical development enablers like social welfare, health care and education.

We are working to ensure that the sovereign credit ratings are fair and transparent and to address high risk premiums for developing economies.

South Africa is also reviewing the Cost of Capital during our G20 Presidency. The overarching goal of this initiative is to investigate the issues that impair the ability of low- and middle-income countries to access sufficient affordable and predictable flows of capital to finance their environmentally responsible and social inclusive development plans.

It is for this reason that our G20 Presidency has convened a G20 Africa Expert Panel that is chaired by the former South African Minister of Finance, Mr Trevor Manuel. The overall objective of the Africa Expert Panel is to offer strategic advice by exploring and defining strategies that advance Africa’s collective developmental interests, focusing on issues like the cost of capital, through increased voice, effective representation, and the achievement of a reformed and all-inclusive global economic policy through the G20.

The Africa Expert Panel will in the coming days release a High-Level Report with its key recommendations.

In addition, at the Fourth Meeting of the G20 Finance Ministers and Central Bank Governors (FMCBG), that took place on 15 and 16 October 2025 on the sidelines of the IMF and World Bank Annual Meetings in Washington, DC, G20 Finance Ministers signed up to the first ever G20 Ministerial Declaration on Debt Sustainability, which signals the intent of the G20 to do more to tackle unsustainable levels of debt alongside the rising cost of capital, particularly for African countries.

We further note the efforts of the African Union in the Lomé Declaration on Debt and the Common African Position on Debt as practical steps to address debt sustainability.

There is a need to explore how best the Lomé Declaration on Debt can fit in the broader discussion within the G20. The Lomé Declaration on Debt can serve as a strategic foundation for Africa’s engagement with the G20 by advocating for reforms to the G20 Common Framework and pushing for a more inclusive, transparent, and development-oriented global debt architecture.

Distinguished Guests,

Shortly after being admitted as the latest member of the G20, the African Union announced its six priorities of the G20, namely:

• Achieving the Agenda 2063 and its Second Decade of Action and the UN SDGs.
• Reform of the international financial architecture.
• International food security and agriculture.
• Just energy transition (electricity, renewable energy and climate action).
• Trade and investment.
• Health and vaccine manufacture.

As we conclude our G20 Presidency in a few weeks’ time, we are happy to report that South Africa has integrated this agenda into its G20 Presidency programme as indicated by the following key legacy outcomes of South Africa’s G20 Presidency:

• The Voluntary Infrastructure Investment Action Plan to Accelerate the Deployment of Clean Cooking Solutions.
• The G20 Critical Minerals Framework developed under the South African Presidency which stands as a voluntary, non-binding, and cooperative blueprint designed to respond to the urgent need for international cooperation to secure responsible, transparent, stable and resilient critical minerals value chains and ensure that critical mineral resources serve as a catalyst for prosperity, value chain security, greater beneficiation and value-addition in developing countries, and sustainable development worldwide.
• The Voluntary and Non-Binding G20 High-Level Principles on Sustainable Industrial Policy for Inclusive Economic Growth, Industrialisation, Jobs and Equality.
• The Ubuntu Approaches on Food Security and Nutrition, and Excessive Food Price Volatility, which the G20 Food Security Task Force produced and which seek to address the negative impacts of excessive food price volatility and persistent food inflation, particularly for low-income households, and set out our shared resolve to shape a future in which all people can access adequate, safe, affordable and nutritious food.
• Launch of the AI for Africa Initiative which was developed as a voluntary platform for multilateral and multistakeholder cooperation between the G20 and the African Union.
• Launch of the second phase (2025-2033) of the broadened Compact with Africa (2.0) supported by the establishment of a World Bank Group multi-donor fund under South Africa’s G20 Presidency, which will step up engagement with the private sector, and integrate youth employment measures into Compact implementation plans.
• The South African Presidency initiative on a G20 Africa Cooperation Agenda on Trade and Investment, which is a voluntary and non-binding initiative to strengthen inclusive growth and development potential of Africa by harnessing support for the implementation of the AfCFTA, mobilise investments into Africa’s productive sector and facilitate investments into key infrastructure projects in support of the African Union Agenda 2063.

As I conclude, let us seize this moment to reaffirm our shared responsibility: to build a fairer, more resilient global financial system—one that serves development, not debt. With our stated priorities and high-level deliverables and most crucially your support, we believe we can deliver a transformative G20 Leaders Declaration.

I thank you for your attention.

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