CAPE TOWN: President Cyril Ramaphosa highlighted significant concerns over the decline of multilateralism during a recent G20 finance meeting in South Africa. His remarks came as the meeting was notably missing the presence of U.S. Treasury Secretary Scott Bessent.
The discussions, attended by finance ministers and central bank governors from major economies, aim to tackle global financial issues just a week after G20 foreign ministers faced a boycott led by U.S. Secretary of State Marco Rubio, who criticized what he called an “anti-American” stance.
Ramaphosa, in his opening speech, stated, “The erosion of multilateralism poses a real threat to global growth and stability.” He emphasized the need for a robust rules-based order to address international disputes and conflicts during these challenging geopolitical times.
The G20, comprising 19 countries plus the European Union and African Union, experiences divides over several crucial topics. These include Russia’s invasion of Ukraine and climate change, with leaders scrambling to adapt to recent U.S. policy shifts since Donald Trump’s return to the presidency.
Ramaphosa stressed, “Multilateral cooperation is essential for overcoming unprecedented challenges,” which include slow economic growth, rising debts, persistent poverty, and the urgent threat of climate change. Italian Finance Minister Giancarlo Giorgetti joined him in this sentiment, warning that geopolitical tensions could particularly harm the economies of poorer nations.
He noted, “Protectionism, trade barriers, and political uncertainty are jeopardizing growth and destabilizing global supply chains, driving up costs and inflation.”
This year, South Africa kindly chairs the G20 with the theme "Solidarity, Equality, Sustainability." As the group’s wealthiest member, the U.S. is primed to assume the presidency next, and recent announcements revealed upcoming tariffs on EU products set at 25%.
Just before the meeting, Bessent decided not to participate, citing his busy schedule. Meanwhile, Rubio had criticized the G20’s theme, claiming it leaned towards anti-Americanism, a sentiment expressed amid Trump’s complaints about ongoing land reforms in South Africa aimed at addressing past inequalities.
Despite some nations opting out, finance ministers from the United Kingdom, Switzerland, and France, along with European Central Bank Chief Christine Lagarde, were present. A significant topic of discussion was defense spending, as EU countries face pressure to reduce their reliance on U.S. security support.
Giorgetti stated, “We need a coherent recovery plan for defense. If each country acts independently, overall costs will unnecessarily soar.” In a related note, British Prime Minister Keir Starmer announced plans to increase defense spending to 2.5% of their GDP by 2027 amid uncertainty regarding Trump’s commitment to European security.
In his address, Ramaphosa underscored South Africa’s focus on enhancing the resilience of poorer nations to natural disasters and assisting developing economies with their debt woes. He remarked that rising debt service obligations are hindering vital investments in education, health care, and infrastructure necessary for growth.
The United Nations Development Programme revealed alarming figures ahead of the G20 meeting, noting that debt service payments in some of the poorest nations have reached distressing levels. Bold action to reform borrowing systems is urgently needed. Interest payments now average over 10% of government revenue in 56 developing nations, nearly twice as many as ten years ago, raising concerns about their long-term financial stability without effective debt relief measures.
