Africa faces growing financing pressures as rising debt service costs severely constrain development. By end-2024, public debt had reached USD 1.815 trillion, while annual debt servicing climbed to USD 163 billion, leaving 57% of Africans living in countries where debt payments exceed health or education spending. These escalating obligations not only erode fiscal space but are also directly reinforced by Africa’s persistently high cost of capital a systemic penalty that inflates borrowing costs regardless of fundamentals. It is precisely in response to this dual challenge of unsustainable debt and prohibitively expensive financing that South Africa, under its G20 Presidency and in partnership with the AUC, UN DESA, and UNDP, convened the G20–Africa High-Level Dialogue on Debt Sustainability, Cost of Capital, and Financing Reforms at the AU Headquarters in Addis Ababa.The meeting brought together African Ambassadors, G20 Ambassadors, AU Commissioners, representatives from AU Member States, International Financial Institutions, UN agencies, Regional Development Banks, Credit Rating Agencies, Institutional Investors, Civil Society Organisations, Academia, Think Tanks from Africa and the Global South, as well as journalists and media practitioners.
In his remarks, H.E. Mr. Alvin Botes, South Africa’s Deputy Minister of International Relations and Cooperation, highlighted the progress achieved under South Africa’s G20 Presidency and the importance of addressing the escalating cost of capital for developing economies. He underscored the establishment of the Africa Expert Panel, chaired by former Finance Minister Trevor Manuel, tasked with developing practical recommendations to lower borrowing costs and enhance Africa’s collective influence in global financial governance. He welcomed the G20 Ministerial Declaration on Debt Sustainability, noting its alignment with the Lomé Declaration on Debt and the Common African Position on Debt.
H.E. Mrs. Francisca Tatchouop Belobe, AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, commended the Republic of South Africa for placing Africa’s priorities at the centre of the international agenda during its historic G20 Presidency. She emphasized that Africa remains resilient but constrained by disproportionately high borrowing costs and limited access to concessional finance. She called for urgent and equitable reform of the global financial architecture, fairer access to long-term finance, and stronger African representation in global fora. She reaffirmed the AU’s commitment to financial sovereignty through initiatives such as the African Credit Rating Agency and the African Debt Monitoring Mechanism, emphasizing that Africa seeks fairness, partnership, and shared responsibility.
The Dialogue built on key global and continental milestones, including the Compromiso de Sevilla (FfD4), the Rio BRICS Declaration, and the African Leaders’ Debt Relief Initiative (ALDRI). Aligned with Agenda 2063 and the 2030 Agenda for Sustainable Development, it provided a high-level platform to challenge prevailing narratives and advance practical African-led proposals to reform the global financial architecture.
This momentum carried into the two panel sessions, where experts and policymakers examined Africa’s rising debt vulnerabilities, the limitations of existing restructuring mechanisms, and the structural factors driving the continent’s high cost of capital. Across both sessions, panelists recommended urgent reforms to the G20 Common Framework, the establishment of an African Debtors’ Forum, the operationalization of Africa-led financing mechanisms such as the African Financial Stability Mechanism and African Credit Rating Agency, and the expansion of innovative instruments including debt-for-climate swaps, SDG-linked financing, and credit-enhancement facilities. They further called for stronger domestic fiscal capacity, responsible borrowing, modernized multilateral development banks, deeper domestic capital markets, and a greater African voice in global financial governance.
In their closing remarks, H.E. Amb. Fathallah Sijilmassi, Director-General of the African Union Commission, and H.E. Mr. Alvin Botes, Deputy Minister of the Republic of South Africa, expressed appreciation to all participants for their substantive contributions. They reaffirmed the continent’s collective commitment to advancing sustainable debt solutions, lowering the cost of capital, and promoting long-term, inclusive development in line with #Agenda2063.
The outcomes of the Dialogue will inform the Johannesburg Declaration and contribute to Africa’s continued advocacy within the G20 on debt sustainability, global financial reform, and equitable access to development finance in the lead up to the G20 Leadership Summit. The meeting underscored the unity of purpose between the African Union and the Republic of South Africa and reflected Africa’s shared vision for a fair, just, and more inclusive global financial system.
Note to Editors
Following the African Union’s (AU) inclusion in the G20, the AU Assembly agreed on six key priorities to guide its engagement over the next three years. These are fast-tracking Agenda 2063, advocating for reform of international financial institutions, enhancing agricultural output, achieving a just energy transition, promoting trade and investment for the African Continental Free Trade Area (AfCFTA) rollout, improving Africa’s credit rating and boost investment in vaccine manufacturing and pandemic response.
To ensure effective representation and engagement in the G20 processes, the AU has adopted specific modalities for its participation in G20 Ministerial and Finance Track meetings. These modalities outline a structured approach to advancing Africa’s priorities on the global stage:
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G20 Leaders’ Summits
The current Chairperson of the African Union, assisted by the Chairperson of the African Union Commission, will represent the African Union in the G20 Leaders’ Summits.
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G20 Ministerial Meetings
Meetings of the Ministers of Foreign Affairs: The Chairperson of the African Union Executive Council, assisted by the Chairperson of the Commission, will represent the AU.
Sectoral Ministerial Meetings: The Chairpersons of the AU Specialized Technical Committees (STCs), assisted by the respective Commissioners, will lead AU delegations to G20 sectoral Ministerial meetings.
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G20 Finance Track Meetings
The Chairperson of the STC on Finance, Monetary Affairs, Economic Planning, and Integration, assisted by the Commissioner for Economic Development, Trade, Tourism, Industry, and Minerals, will represent the African Union in the meetings of the G20 Finance Ministers and Central Bank Governors.
The modalities will be reviewed after one year of participation in the G20 to assess their effectiveness and make necessary adjustments.
For further information, please contact:
Faith Adhiambo | Directorate of Information and Communication| African Union Commission |E-mail ochiengj@africanunion.org
Mandy Mauyakufa I African Union Commission I AU G20 Coordination Unit I Mauyakufam@africanunion.org Web: au.int | Addis Ababa, Ethiopia | Follow Us: Facebook | Twitter | Instagram | YouTube
