A version of this article was originally published in the Sunday Times.

The world stands at a critical juncture, as escalating geopolitical tensions and fragmentation, underscored by recent US tariff impositions and some related retaliatory actions, have resulted in an unprecedented level of uncertainty, which cast a shadow over global economic growth and stability.

African economies — many of which are deeply integrated into global trade and financial networks — are particularly vulnerable. The International Monetary Fund (IMF), has previously warned that rising trade restrictions could severely diminish Sub-Saharan Africa’s GDP.

As these global shifts intensify, with trade barriers like the recent tariffs likely to exacerbate economic uncertainty, Africa’s vulnerability to these shifts and external shocks makes it imperative for Africa to seize the moment to help lead the reform agenda. The decline in global cooperation and the rise of protectionist measures only reinforce the need for Africa to advocate for solutions that build a more resilient and equitable global order.

Fortifying sovereign debt systems to improve stability and sustainability

One of the most pressing global challenges is the urgent need for sovereign debt reform. Many developing countries are not insolvent but face liquidity crises that, if unresolved, could result in confluence of financial, social and political challenges that impede economic stability and growth. The problem is not just debt itself, but the failure of the international system to deliver timely and effective restructuring which supports debt sustainability.

A revised debt architecture must balance sustainability with development needs. Private sector engagement must be significantly expanded, requiring innovative mechanisms such as blended finance models, debt-for-climate swaps, and restructuring frameworks that align creditor incentives with long-term growth.

Moreover, the role of creditors and bondholders in debt negotiations must evolve. Their incentives must be realigned to strike a defensible balance between sustainable debt resolution and adequate financial returns. Africa is in a unique position to drive the creation of a fairer, more predictable framework for debt restructuring that ensures countries can invest in essential services and infrastructure without creating a cycle of unsustainable borrowing.

Strengthening the global financial safety net amidst growing pressure    

Africa’s financial resilience depends on stronger, better-coordinated global financial safety nets. The existing mechanisms — including the IMF, multilateral development banks, and Regional Financing Arrangements (RFAs) — are increasingly under strain. The 2008 financial crisis and the COVID-19 pandemic exposed the limitations of these institutional frameworks in responding effectively to emerging market and developing economies (EMDE), while the latest tariff actions once again highlight their fragility.

With increasing financial volatility, amplified by unpredictable trade policies, EMDE require elevated financing to weather economic shocks. However, the current system often disproportionately favors advanced economies, leaving developing nations over-reliant on IMF interventions, which often come with restrictive conditions that limit economic policy flexibility.

South Africa’s G20 presidency presents a pivotal opportunity to advance efforts to drive meaningful reform in the global financial architecture. Building on the groundwork laid by previous presidencies, such as Brazil’s, South Africa is in a unique position to push for stronger financial safety nets, greater debt sustainability, and enhanced climate finance mechanisms. This is not just about advocacy but about ensuring that Africa’s financial resilience is embedded in global decision-making processes, especially whilst protectionist trade measures threaten economic stability.

Mobilizing climate finance for infrastructure and growth

Africa’s path to sustainable economic transformation is inseparable from climate finance and green infrastructure investment. With an abundance of green finance opportunities, Africa is uniquely positioned to capitalize on this momentum. But, as the continent’s share of the global $2.2 trillion green bond market stands at less than 1%, action must replace rhetoric. The continent must move beyond receiving global pledges and secure concrete financial commitments using political processes to ensure that climate finance is not only mobilized at scale and affordable cost, but also effectively deployed. This requires clear key performance indicators to track implementation, as well as the development of African-led climate finance strategies.

Moreover, Africa has significant untapped domestic financial resources with enormous potential for mobilizing private capital toward green infrastructure. By leveraging domestic resources and strengthening regional financial institutions, Africa can create a self-sustaining climate finance ecosystem that does not rely exclusively on external funding.

Reclaiming global equity through African-led resilience and reform

By advocating for debt reform, strengthening financial safety nets, and mobilizing climate finance, Africa can help build a more resilient, inclusive, and sustainable global economy that leaves no one behind. Central to this vision is the spirit of Ubuntu, the profound philosophy that “I am because we are,” underscoring a sense of community and shared responsibility. This principle underlines our interconnectedness and emphasizes that the challenges we face cannot be solved in isolation. As we work together to uplift the most vulnerable, we strengthen not only our communities but the global community as a whole.

The challenges are significant, but the opportunities are even greater. Against the backdrop of escalating protectionism and inward-looking tendencies, Africa has a unique chance to champion a more cooperative approach to global economic governance. With the first G20 at Leaders’ level hosted on African soil, the continent has a new meeting with history to claim its place as central to global financial reform.

South Africa’s 2025 G20 Presidency is far more than a ceremonial moment; it is a rare opportunity to advance the reshaping of global governance, amplify the African voice and position the Global South as a meaningful partner in international decision-making. Chairing this forum is also an opportunity to challenge entrenched economic hierarchies and reimagine global economic governance in a way that prioritizes inclusivity and equity.

A specific focus should be on sovereign debt reform. According to the IMF, over 60% of low-income countries are at high risk of debt distress. Many of these countries are in Africa, burdened by unsustainable debt repayment obligations that stifle growth and investment. South Africa can lead discussions on developing more equitable debt restructuring mechanisms, such as debt-for-climate swaps, which can simultaneously address financial instability and the climate crisis.

A focus on building consensus, through increased coordination and collaboration, and successfully navigating competing interests among G20 members will be invaluable in addressing issues such as trade imbalances, technological inequalities and other lingering areas of contention within the G20.

The bottom line is that this 2025 G20 presidency is not just a chance for South Africa to host a summit; it is an opportunity, and a responsibility, for the country to help reshape global economic governance, address systemic inequalities and create pathways for the inclusive, sustainable development that Africa, and the world, so desperately need right now. 

Read the original piece here (Paywall).