As South Africa assumes the G20 Presidency from December 2024 to November 2025, the country is taking a bold step to address one of the most pressing issues facing the African continent: the debt crisis. In a landmark move, South Africa has established an Africa Expert Panel, chaired by former Finance Minister Trevor Manuel, to develop strategies for tackling the unsustainable levels of debt burdening many African nations.
The Scale of Africa’s Debt Crisis
The debt crisis in Africa has reached alarming levels. According to a government statement, African countries are set to pay close to $89 billion in external debt service in 2024 alone. Shockingly, 20 low-income countries are at risk of debt distress, with more than half of Africa’s 1.3 billion people living in nations that spend more on interest payments than on critical social services like health, education, and infrastructure.
“This level of debt is unsustainable and undermines efforts towards sustainable development and poverty alleviation. There is a need for bold and urgent action on a comprehensive plan to deal with high levels of debt in Africa and other developing countries,” the statement emphasized.
The Role of the Africa Expert Panel
The newly formed Africa Expert Panel will play a pivotal role in shaping the G20’s approach to Africa’s debt crisis. Comprising some of the continent’s most respected economists, policymakers, and thought leaders, the panel’s mission is to provide strategic advice and develop actionable recommendations to address the crisis.
The panel’s overall strategy includes:
- Exploring and defining strategies that advance Africa’s collective interests.
- Increasing Africa’s voice and representation in global economic policy discussions.
- Achieving a reformed and inclusive global economic system through the G20.
The panel will produce a High-Level Report outlining its key recommendations, which will be presented to G20 leaders and stakeholders.
Key Members of the Panel
The Africa Expert Panel brings together a diverse group of experts, including:
- Trevor Manuel (Chair): Former South African Finance Minister and a globally respected economic leader.
- Joel Netshitenzhe: Executive Director of the Mapungubwe Institute for Strategic Reflection.
- Anthony Musonda: African Development Bank officer in charge of macro-economic policy, debt sustainability, and forecasting.
- Carlos Lopes: Honorary Professor at the University of Cape Town’s Nelson Mandela School of Public Governance.
- Daouda Sembene: CEO of AfriCatalyst.
- Donald Kaberuka: Chairman and Managing Partner of SouthBridge.
- Hanan Morsy: Chief Economist at the UN Economic Commission for Africa.
- Murray Leibrandt: Chair of Poverty and Inequality Research at the University of Cape Town.
- Ngaire Woods: Dean of the Blavatnik School of Government at the University of Oxford.
This distinguished group represents a wealth of expertise and experience, ensuring that the panel’s recommendations are both practical and impactful.
South Africa’s G20 Presidency: A Platform for Change
South Africa’s assumption of the G20 Presidency marks a historic moment, as it is the first time G20 meetings are being held on African soil. This provides a unique opportunity to focus the G20’s agenda on issues critical to Africa, such as debt sustainability, economic reform, and inclusive growth.
The G20, which comprises 19 of the world’s most systemically important countries, as well as the African Union and European Union, is a powerful platform for driving global economic policy. South Africa’s leadership aims to ensure that Africa’s voice is heard and that the continent’s challenges are addressed at the highest levels of global decision-making.
A Call for Bold Action
The establishment of the Africa Expert Panel underscores the urgency of addressing Africa’s debt crisis. As Trevor Manuel and his team begin their work, the focus will be on crafting a comprehensive plan that not only alleviates the immediate debt burden but also lays the foundation for long-term economic stability and growth.
“The time for action is now,” the government statement declared. “By working together through the G20, we can create a more equitable and sustainable global economic system that benefits all.”
Key Takeaways:
- South Africa’s G20 Presidency has established an Africa Expert Panel to tackle the continent’s debt crisis.
- African countries are set to pay $89 billion in external debt service in 2024, with 20 nations at risk of debt distress.
- The panel, chaired by Trevor Manuel, will produce a High-Level Report with actionable recommendations.
- South Africa’s G20 leadership provides a platform to amplify Africa’s voice and address critical economic challenges.
By leveraging its G20 Presidency, South Africa is taking a proactive role in shaping a brighter future for Africa and ensuring that the continent’s needs are prioritized on the global stage.
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