G20 adopts Africa engagement framework to cut capital costs

The G20 Leaders' Summit in South Africa has adopted an Africa Engagement Framework aimed at addressing the continent's economic challenges. Leaders broke tradition by issuing a declaration on the first day, despite US opposition. Norwegian and EU support highlights the summit's focus on African priorities.

The G20 Leaders' Summit, hosted by South Africa since December 2024, concluded its two-day session on Sunday with significant outcomes for Africa. Norwegian Ambassador to South Africa, Gjermund Saether, praised the hosts for adopting the Africa Engagement Framework, which targets key issues including fiscal and macroeconomic challenges, better institutional governance, lower costs of capital, and boosted private sector financing.

Saether noted South Africa's achievements under its presidency, stating that these give Norway added incentive to expand investments in Pretoria and the broader African continent. The summit deviated from norms by approving a declaration on Saturday, the opening day, rather than at the close. This move occurred amid resistance from the United States, where President Donald Trump opted not to attend.

Political analyst Dr Thelela Ngcetane-Vika emphasized the European Union's strong presence as vital, particularly in light of the US absence. She highlighted a joint statement from South African President Cyril Ramaphosa, German Chancellor Friedrich Merz, and French President Emmanuel Macron as enhancing the G20's legitimacy. Regarding China's non-attendance, Ngcetane-Vika pointed out that Beijing dispatched senior delegations and remains a steadfast supporter of South Africa.

The declaration outlines measures to tackle climate disasters and high sovereign debt, among other global concerns. A formal handover to the US presidency appears unlikely at this stage. The event underscores Africa's rising role in international forums, with South Africa steering discussions toward continental development.

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