G20 member states are aiming to reach a unified stance on global financial reform as finance and central bank deputies gather in Durban for meetings on Monday and Tuesday. The discussions, led by South Africa under its current G20 presidency, focus on reducing the debt burden and improving access to finance for developing nations.
“Our presidency prioritizes strengthening the G20’s role in delivering practical solutions and building a resilient, effective international financial system. We’re also focused on improving debt sustainability, addressing liquidity issues, reforming multilateral development banks, and securing development financing,” said Duncan Pieterse, Director-General of South Africa’s National Treasury.
African nations are pushing hard for change, citing high borrowing costs that hinder investment and restrict vital public spending in sectors like health, education, and infrastructure.
The meetings will also explore the root causes of debt, according to South African Reserve Bank Deputy Governor Rashad Cassim. Many developing countries argue that the current global financial system perpetuates inequality.
“This financial architecture is at the heart of today’s debt crisis, ongoing poverty in developing countries, and many of the economic problems facing the Global South,” said Redge Nkosi, executive director of the Firstsource Money think tank.
Reforms are seen as a key step toward achieving the UN’s Sustainable Development Goals (SDGs). The conversation will continue later this week when G20 finance ministers and central bank governors meet in Durban on Thursday and Friday. However, global political tensions could hinder progress.
U.S. Treasury Secretary Scott Bessent is set to miss the meeting, reflecting strained relations between the United States and BRICS nations.
