Africa can still push for debt reforms despite US boycott

Africa still has a chance to press for “ambitious” change in its debt problems under the G20 Common Framework, even though the United States is boycotting the annual summit of global heads of state in Johannesburg this weekend.

- Lenin Ndebele

The G20 Common Framework for Debt Treatments is a mechanism created by the G20 in 2020 to help heavily indebted low-income countries negotiate debt relief in a coordinated and predictable way.

In August a G20 business summit heard that Africa pays some of the highest borrowing costs in the world, and there were calls for a coalition of willing institutions to address the issue. Data shows that African governments pay up to 500% more for capital market loans, with external debt service reaching $89 billion in 2024.

The US's boycott of this year's G20 under South Africa's presidency — which is largely due to policy differences with Pretoria, is a chance for other global powers to step up, international development expert Desire Assogbavi told the Mail & Guardian this week.

“The absence of (America) is regrettable and symbolically important, but it does not stop the G20 from moving forward. It does not close the space for ambitious commitments that reflect African and broader Global South priorities,” Assogbavi said.

“By not showing up, Washington is voluntarily ceding influence to others, including the European Union, China, India, Brazil and the African Union at a moment when the rules and norms are being rewritten.”

US President Donald Trump has warned that he will not endorse resolutions from the G20 summit and urged other members not to do so as well.