By Africa Links 24
Published on 2024-03-04 09:59:12
Last week, the G20 Finance Ministers and Central Banks Governors met in Sao Paulo, Brazil to discuss a wide range of issues. These included reforms of the global financial structure, the state of the global economy, food security, development and equity, trade and investment, climate change, energy transition, and the digital economy, among others. Throughout 2024, the Brazilian G20 Presidency has planned a total of 120 meetings before South Africa takes over the Presidency.
This year marks the first time the African Union is participating as a permanent member of the G20. The recent African Union Summit in Addis Ababa, Ethiopia outlined the process of setting up the support structure around the AU’s participation in the G20. This process will be further discussed among African Union member states. However, it is crucial to take advantage of this opportunity to present AU proposals in the ongoing G20 agenda.
With the AU as a newcomer to the group, there are several key issues that AU representatives can advocate for. One important area is addressing debt distress in many low- and middle-income countries and tackling liquidity challenges. The AU can push other G20 members to double their efforts in implementing the G20 Common Framework for Debt Treatment and strengthen the pre-emptive action capability of the framework.
Additionally, the AU can play a role in advocating for a time-bound review of the Common Framework to ensure transparent negotiations and timely resolutions. They can also explore ways to leverage debt treatment under the G20+ to engage private creditors and international finance institutions effectively.
Moreover, the AU can build on concerns raised at the African Union Summit regarding global financial architecture reforms and incorporate them into the G20 discussions. This may involve securing G20 support to promote inclusive and effective international tax cooperation at the United Nations.
The AU can also advocate for a clear African position on the replenishment of the International Development Association (IDA) and emphasize the importance of concessional funding for development finance. Addressing Africa’s fiscal challenges arising from trade shocks is another crucial area where the AU can make a difference by advocating for fair trade practices within the G20.
As the Brazilian Presidency of the G20 is followed by the first G20 meetings in South Africa in 2025, the AU has the opportunity to influence the G20 agenda with its ideas and ambitions. After successfully securing a seat at the table, it is time for the African continent to actively contribute to shaping the future of global economic governance.
