Godongwana highlights debt vulnerabilities and global economic concerns at G20 summit

FINANCE Minister Enoch Godongwana said that rising trade barriers, persistent global imbalances and new geopolitical risks were concerns for domestic economy.

- YOGASHEN PILLAY

Delivering his opening remarks at the G20 Finance Ministers and Central Bank Governors meeting, Godongwana said many developing countries, especially in Africa, remain burdened by high and rising debt vulnerabilities.

"They face constrained fiscal space and high cost of capital that limits their ability to invest in their people and their futures," he said.

"Technological shifts, especially in artificial intelligence and digital finance, offer tremendous potential but also demand robust governance and coordinated action to harness the opportunity." Godongwana said that climate-related shocks and extreme weather events were also increasing in frequency and severity worldwide, impacti lives and macroeconomic stability.

"The curative impact of these cascading challenges is pushing the achievement of the Sustainable Development Goals (SDGs) by 2030 further out of reach. Developing countries face a staggering financing gap of $4 trillion (R71 trillion) every year," he said.