JOHANNESBURG: The transformation of global financial institutions is essential to address Africa’s mounting debt challenges and the financial injustices they perpetuate, United Nations Secretary-General António Guterres emphasized at a recent international meeting.

According to South African Government News Agency, Guterres called on the G20 to lead efforts in delivering financial justice during the closing session of the Joint Sherpa-Finance and Central Banks Deputies’ Meeting in Johannesburg. He underscored the importance of financing in promoting inclusive economic growth, supporting industrialization, ensuring food security, and addressing inequalities. Guterres criticized global financial systems for burdening countries with high debt service costs while restricting access to low-cost financing needed to combat poverty, inequality, and hunger, and to advance the Sustainable Development Goals (SDGs).

In 2022, public debt in Africa reached a substantial USD 1.8 trillion, the UN reported. Guterres highlig
hted the need for fair representation of developing countries in the governance of financial institutions and the necessity of safeguarding economies from global shocks. He further stressed the urgency of reforming global safety nets, which he argued have been inadequate, as exposed during the COVID-19 pandemic.

Guterres also pointed to the historical injustices rooted in colonialism that continue to hinder Africa’s potential. The continent, he noted, is rich in cultural and natural diversity and possesses a vibrant entrepreneurial spirit, yet remains constrained by financial and environmental injustices. Climate change, which Africa has contributed little to, exacerbates issues such as floods, storms, hunger, and droughts.

In September, global leaders adopted the Pact for the Future, which lays out commitments for ambitious reforms to make international financial structures more representative of the current global economy and focused on the needs of developing countries. This pact addresses various issues
, including sustainable development, climate change, digital cooperation, and global governance reform.

Part of the reform efforts involves increasing the lending capacity of Multilateral Development Banks to better support developing nations and mobilizing international and domestic resources for critical investments. Guterres appointed a group of experts to rally international support for action on debt, with Trevor Manuel among those leading the initiative.

Guterres’s participation marks the beginning of South Africa’s G20 Presidency, which commenced on December 1, 2024. South Africa’s leadership is significant as it represents the first African Presidency following the African Union’s admission as a permanent member. The G20, consisting of major global economies, plays a pivotal role in shaping global economic policies and fostering stability.