(3 Minutes Read)
The G20 presidency is coming at a critical juncture when African nations are diving deep into debt. South Africa’s priorities during its G20 presidency rightfully reflect the development concerns of Africa and other developing countries. The top priorities are debt relief, resilience, climate finance, and critical minerals.
The New Year 2025 heralded a fresh beginning and opportunity for Africa starting with South Africa’s yearlong G20 Presidency. The Presidency has finally won Africa its rightful role in the global decision-making process. In November 2025, the G20 Leaders’ Summit will be hosted on African soil for the first time.
The G20 presidency is coming at a critical juncture when African nations are diving deep into debt. The priorities spelt out by South Africa during its G20 presidency rightfully reflect the development concerns of Africa and other developing countries. The top priorities are debt relief, resilience, climate finance, and critical minerals.
Over the past decade, interest payments in developing countries witnessed a sharp rise of 64%. Africa is at the epicenter of the global debt crisis with the steepest rise of 132%. The United Nations Conference on Trade and Development (UNCTAD) has estimated that Africa’s debt burden has grown by 183% since 2010, outpacing its GDP growth by four times. Economists are worried that Africa’s sovereign debt crisis may reverse years of development gains as countries are forced to ignore pressing social and economic needs over debt repayment obligations.
Climate Change is another monumental challenge for Africa. With a minimal share in global carbon emissions, Africa’s share of climate disasters such as floods and droughts is unparalleled.
There is a close nexus between sovereign debt and climate change as is evident in the case of Africa. Climate change inflicts heavy economic losses that hamper the debt-servicing capacity of these vulnerable economies with fragile financial systems.
Concessional finance and grants are critical for Africa to fund environmental initiatives to counter climate change. The cost of adaptation initiatives for developing countries, including Africa is pegged at USD 56 billion annually for the period 2020–2030. The current global financial architecture has failed to offer sufficient support for these efforts.
This calls for comprehensive reforms in global debt governance by including debt treatment initiatives with climate resilience and sustainable development goals. The G20 presidency of South Africa, along with the African Union’s newly established permanent seat, presents a strategic opportunity to present Africa’s perspectives and advocate reforms of global economic governance by including sustainable finance.
However, South Africa’s success depends on formulating a strategic agenda, efficiently and diplomatically navigating the conflicting interests of other G20 members, and the ability to evolve a consensus.
The New Year also unveiled a new political landscape in some countries in Africa. After a bumper year for elections in 2024, the political leadership in some of these countries has changed for the better. Widespread frustration with economic hardship, youth unemployment, high cost of living, and failure of governments, found expression at the ballot box and unseated several corrupt governments.
Botswana saw the end of the 58-year dominance of the ruling party. In a stunning development, the opposition coalition ousted President Masisi’s government ending decades of single-party dominance. The continent also saw the election of a second female President when Netumbo Nandi-Ndaitwah took oath as the President of Namibia. Ghana’s new President, John Mahama, took office in early 2025 marking the return of democracy. Thankfully, there will be fewer elections in 2025. Elections to watch out for in 2025 include Tanzania, Cote d’Ivoire, and Cameroon.
The African Union is also gearing up for a change in leadership, in February 2025. The next chairperson has a key role in shaping the continent’s future. The likely candidates are Kenya’s former Prime Minister, Raila Odinga, Djibouti’s current Foreign Minister, Mahmoud Ali Youssouf, and former Foreign Minister of Madagascar, Richard Randriamandrato.
After years of turmoil, the Horn of Africa region is slated to calm down in 2025, after Ethiopia and Somalia agreed to end their dispute. The treaty brokered by Turkey sought to diffuse the tensions after Somaliland agreed to give port access to landlocked Ethiopia.
The curtains on French dominance in West Africa will also come down in 2025. French troops from Côte d’Ivoire, Senegal, and Chad will be withdrawn this year continuing the exit of French troops from Mali, Burkina Faso, and Niger that started in 2020.
In 2025, the continent is embracing new opportunities. It stands poised for remarkable growth in its global presence, unity, new leadership, and sustainable development.
