South Africa, holding the G20 presidency, is prioritizing the reduction of developing nations' debt burdens, particularly in Africa. International Relations and Cooperation Minister Ronald Lamola highlighted the significantly higher cost of capital for African countries compared to industrialized nations.
He emphasized the need for revolutionary solutions to lower interest rates on loans, arguing that Africa shouldn't face higher rates than developed countries for comparable loans.
"We all know that many countries, especially the developing world, are still recovering from the economic shock of COVID-19. Poverty and weak economic growth remain a challenge for many countries, especially in Africa and the developing world," the minister said.
This focus was a key topic during the G20 Sherpas' meeting in Johannesburg, which began December 9. A meeting participant told Russian media that securing low-interest loans for African countries to develop rare earth metal and energy transition technology projects is a primary objective.