Amid intensifying fiscal constraints and a growing debt burden, African leaders, institutions, and global partners convened in Addis Ababa to advocate for urgent reform of the global financial system. Hosted under South Africa’s G20 Presidency in collaboration with the African Union Commission, the United Nations Department of Economic and Social Affairs and the United Nations Development Programme, the G20 Africa High Level Dialogue on Debt Sustainability, Cost of Capital and Financing Reforms brought together a broad spectrum of stakeholders from across the African continent and the Global South.
By the end of 2024, Africa’s public debt had surged to USD 1.815 trillion, with annual debt servicing reaching USD 163 billion. More than half of the continent’s population now lives in countries where debt service obligations exceed government spending on health or education. The dialogue addressed not only the scale of these financial pressures but also their structural underpinnings. A key focus was Africa’s persistent exposure to elevated borrowing costs that remain disproportionate to economic fundamentals. This financial penalty has increasingly been acknowledged as systemic and unjustified.
The meeting was convened at the African Union Headquarters and included Ambassadors, AU Commissioners, representatives of African Member States, international financial institutions, United Nations agencies, regional development banks, credit rating agencies, institutional investors, civil society organisations and academic institutions. It sought to explore pragmatic and inclusive avenues through which Africa can assert a stronger voice in reshaping global economic governance while responding to immediate fiscal vulnerabilities.
In his address, South Africa’s Deputy Minister of International Relations and Cooperation, Alvin Botes, highlighted the strategic achievements made under the country’s G20 leadership. He welcomed the G20 Ministerial Declaration on Debt Sustainability and reaffirmed its alignment with key African frameworks including the Lomé Declaration and the Common African Position on Debt. Botes also announced the formation of the Africa Expert Panel, led by former South African Finance Minister Trevor Manuel, which has been mandated to develop actionable recommendations to reduce Africa’s cost of capital and bolster its financial sovereignty.
Francisca Tatchouop Belobe, African Union Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, acknowledged South Africa’s efforts in centring African concerns within international policy debates. She reiterated the continent’s resilience but warned of the constraints imposed by limited access to concessional financing and disproportionately high borrowing premiums. She called for a restructured and inclusive global financial architecture, the strengthening of Africa-led institutions such as the African Credit Rating Agency and the African Debt Monitoring Mechanism, and the equitable participation of African countries in global forums.
The dialogue drew from existing African and global commitments, including the Compromiso de Sevilla on Financing for Development, the Rio BRICS Declaration and the African Leaders’ Debt Relief Initiative. Anchored in both Agenda 2063 and the 2030 Agenda for Sustainable Development, the platform served as a space to challenge long-standing narratives and propose African-driven solutions to global economic imbalances.
Two expert-led panel discussions examined the continent’s evolving debt risks, the shortcomings of current debt restructuring mechanisms, and the root causes of high financing costs. Among the proposals put forward were reforms to the G20 Common Framework, the creation of an African Debtors’ Forum, and the operationalisation of innovative Africa-based financial instruments such as the African Financial Stability Mechanism and the African Credit Rating Agency. Additional proposals included the use of climate-linked debt swaps, Sustainable Development Goal aligned financing tools, and credit-enhancement strategies. Participants also emphasised the importance of strengthening domestic fiscal capacities, improving debt transparency, and supporting the development of local capital markets.
In their closing statements, African Union Commission Director-General Fathallah Sijilmassi and Deputy Minister Botes underscored the shared commitment to realising sustainable debt practices, reducing the cost of capital, and ensuring inclusive long term development across the continent. Both leaders affirmed that the outcomes of the dialogue would contribute to the Johannesburg Declaration and inform Africa’s position leading into the upcoming G20 Leadership Summit.
The dialogue demonstrated the maturity of Africa’s economic diplomacy, moving beyond reactive frameworks towards a proactive vision for financial justice. It illustrated a growing consensus that Africa’s future lies in reshaping financial systems from within, not simply seeking adjustments from without. With the African Union’s recent admission to the G20, the continent now has a formal platform through which it can shape global financial debates. This development is guided by six strategic priorities endorsed by the AU Assembly, which include fast tracking Agenda 2063, reforming global financial institutions, accelerating agricultural productivity, ensuring a just energy transition, advancing the African Continental Free Trade Area, and investing in health sovereignty through enhanced vaccine production capabilities.
To strengthen its G20 engagement, the African Union has adopted structured modalities for representation at key ministerial and finance track meetings. These arrangements ensure that Africa’s priorities are articulated coherently and consistently within multilateral settings. A review of the effectiveness of these modalities is scheduled after one year of implementation.
While the Addis Ababa dialogue was convened under the banner of financial reform, its deeper message was clear. Africa is not seeking charity or exceptionalism, but rather equity, recognition and partnership within a global financial order that is inclusive, representative and just. The continent is no longer content with being shaped by systems it did not design. It is actively contributing to shaping those systems in ways that reflect African realities, knowledge systems and aspirations.
