The President of the BBC Elias Monage and the entire leadership of the BBC,

It is an honour and privilege to address the BBC annual summit under the theme socio economic transformation and inclusive growth in the context of the GNU, G20 Presidency and the changing Geopolitical DYNAMICS.

Minister Tau and I have just landed from Paris where we attended the OECD Ministerial Council.

The theme of your summit comes at an appropriate time given the transformation debate at home and the shifting geopolitical dynamics.

I congratulate you for meeting this annual gathering, being organised is the first step to development.

We defeated apartheid by working together.

I am also here to challenge you to broaden transformation beyond the national sphere and take it to our continent and the world.

We can do with your voices continentally and the globally.

In spite of the negative narratives, there are good things happening in Africa.

In its Economic Outlook Interim Report released in March 2025 titled Steering through Uncertainty, the OECD highlighted that the Global GDP growth is projected to moderate from 3.2% in 2024, to 3.1% in 2025 and 3.0% in 2026, with higher trade barriers in several G20 economies and increased geopolitical and policy uncertainty weighing on investment and household spending.

The report further cautions that significant risks remain. Further fragmentation of the global economy is a key concern. Higher and broader increases in trade barriers would hit growth around the world and add to inflation.

With this background in mind, our Presidency of the G20 takes place amidst a volatile global geopolitical climate which has contributed to fostering a climate of distrust, thus threatening to unravel progress we have worked hard to address pressing global challenges like deepening inequality, unemployment and poverty, amongst others.

Addressing these overlapping challenges requires enhanced international cooperation. In particular, mobilising support and resources to tackle the internal disparities driven by the Un-even distributional effects of trade and globalisation is critical.

The African Development Bank’s flagship 2025 African Economic Outlook report, projects Africa’s economic growth to increase to 3.9 percent in 2025 and 4 percent in 2026, despite mounting geopolitical uncertainties and trade tensions. Despite global headwinds and significant challenges, the report reflects positive projections and continued resilience, notably that:

• 21 African countries will achieve growth exceeding 5 percent in 2025, with four of these countries, potentially reaching the critical 7 percent threshold required for poverty reduction and inclusive growth.
• Africa’s projected growth rates will surpass the global average and outpace most other regions except emerging and developing Asia.
• Africa’s continued resilience is built on effective domestic reforms and improved macroeconomic management.

Very good things are indeed happening in Africa.

It is against this backdrop that our diversification strategy is anchored in the continent.

Importantly, the report highlights the significant domestic resource potential, which if properly harnessed, could add an additional at least $1.43 trillion in domestic resources, including from natural capital, human capital (Africa has a very youthful population), financial capital, and business capital. For your opportunities abound in Africa.

In this regard, urgent action is needed to address massive capital outflows from illicit financial flows, profit shifting by multinational corporates, and corruption. Other downside risks to the outlook include restricted trade, persistent inflation, reduced ODA, conflicts and persistent and perennial debt burden.

According to the AfDB, principal repayments alone on external debt could exceed $61 billion in 2025, representing around 69 percent of total debt service.

A 2024 AFDB report estimates that African countries are currently paying 500 percent more in interest when borrowing on international capital markets compared with rates that could be achieved by borrowing from multilateral development finance institutions such as the World Bank or the African Development Bank.

With a disproportionate share of commercial debt, much of it held in US dollar with the attendant high debt service costs, Africa’s debt burden remains a major policy concern.

Promoting inclusive trade and investment can help bridge both domestic and global divides, supporting the resilience of developing countries in particular. It is vital that the G20, under South Africa’s leadership, prioritises inclusive and sustainable development, structural economic diversification, green industrialisation, and the creation of robust, inclusive supply chains as key themes for its agenda to reinforce governments messaging here at home, continent ally and abroad.

In the context of our country inclusive growth has a broader meaning, it must mean the inclusion of black entrepreneurs in the mainstream of our economy and into the South African business playing a role in the world. This is a constitutional imperative. Further to the above small businesses have a key role to play, exchange program and collaboration becomes key.

Let’s me off-ramp for a moment.

I know black business is not making enough money, but some do make a little that can make a difference.

Continue with building socially responsible enterprises, building our communities, supporting sporting or arts and culture activities in the Townships or the rural areas.

We should be at one with our committees.

Where are the black solidarity movements to stand up and defend the rights of South Africans?  Where are the black organisations when government is taken to Court to challenge some of our transformation laws?

The revolution will not defend itself, as the advanced detachment of our society, you should act as the vanguard of the constitution when is under attack, particularly the transformation laws or anything that threatens our social cohesion such as the apartheid flag still be raised, the Nelson Mandela foundation stood alone on the Courts in this regard.

Going back to the G20.

Distinguished participants,

First, we are taking action to strengthen disaster resilience and response.

Climate-induced natural disasters are affecting countries around the world, with devastating impacts on those countries that cannot afford the costs of recovery and rebuilding.

According to the African Risk Capacity 2024 White Paper on the State of Natural Disasters in Africa, the economic loss from natural disasters generally includes damage to agriculture, property, infrastructure, and job losses due to business disruption, as well as government expenditure response mechanisms and loss of lives.

Insurers have estimated that the total economic loss from weather-related natural disasters in Africa, including direct losses, was $8 billion in 2023. In the wake of disaster, women and children face a higher likelihood of mortality than men.

South Africa is advocating for enhanced global cooperation, particularly through knowledge sharing, technology transfer, and capacity building to support developing and least-developed countries.

We are strengthening ties between African nations and the broader international community, promoting coordinated disaster response and preparedness across the continent.

We are also calling on G20 Leaders to urge the global community, including international financial institutions, development banks and the private sector, to scale up post-disaster reconstruction financing and capacity.

Second, we are taking action to ensure debt sustainability for low-income countries.

South Africa is reviewing the Cost of Capital during our G20 Presidency.

The overarching goal of this initiative is to investigate the issues that impair the ability of low- and middle-income countries to access sufficient affordable and predictable flows of capital to finance their environmentally responsible and social inclusive development plans.

The policy space available to developing countries is significantly constrained by their debt servicing obligations and their climate and development financing needs.

But with you alongside us, we can buck the trend.

For example, the total public debt of African countries in 2022 was US$1.8 trillion, an increase of 183% since 2010, with 23 countries paying more for debt costs than critical development enablers like health care and education.

In 2023 the UNDP calculated that global credit ratings agencies’ subjective assessments cost Africa $75 billion in excessive interest and lost lending volumes, thus compounding the debt crisis.

South Africa is advancing sustainable solutions to tackle high structural deficits and liquidity challenges and extend debt relief to developing economies.

We are also working to ensure that the sovereign credit ratings are fair and transparent and to address high risk premiums for developing economies.

Third, we are mobilising predictable and increased finance for a just energy transition.

This includes strengthening multilateral development banks, enhancing and streamlining support for country platforms such as the Just Energy Transition Partnership and more effectively leveraging private capital.

We call on global financial institutions re-direct of unused Special Drawing Rights, to assist developing countries to realise their developmental goals.

We are also calling on the G20 to support ore African countries in their initiatives aimed at addressing climate change, along the lines South Africa’s Just Energy Transition Partnership.

Fourth, we are harnessing critical minerals for inclusive growth and sustainable development.

The African continent has 30 percent of the world’s mineral reserves, including platinum, gold, diamonds and coal. It has up to 90 percent of the world’s chromium and platinum.  The largest reserves of cobalt, diamonds, platinum and uranium in the world are in Africa.

Natural capital and critical minerals are important for Africa’s socio-economic development.  By advancing policies that promote value addition at source , regional cooperation, and transparent governance, South Africa’s G20 Presidency is championing an inclusive framework that ensures resource-rich nations and communities benefit equitably from their mineral wealth.

This aligns with African Union’s Agenda 2063 and the African Green Minerals Strategy, which position critical minerals as essential to achieving the continent’s development goals and contributing to global resilience and equity. South Africa will take forward the outcomes of the 2024 report of the UN Secretary-General’s Panel on Critical Energy Transition Minerals. This will require real transformation muscle.

Distinguished participants,

Following the African Union’s inclusion in the G20 in 2023, we are now working with the African Union to amplify Africa’s voice in global economic governance, whilst ensuring that the development priorities of the African Continent and the Global South find expression firmly onto the agenda of the G20.

From an African perspective, the G20’s support for emerging and developing economies to achieve sustainable development is vital for global stability and security.

The rise in global commodity prices and the coming into operation of the African Continental Free Trade Area opens numerous opportunities for African economies. South Africa is advocating for regional economic integration and stronger global trade networks.

We hope that our efforts will support inclusive growth and sustainability across the Continent while contributing to global economic stability, positioning Africa as a vital partner in advancing equitable and long-term development.

I thank you for your attention.

ISSUED BY THE DEPARTMENT OF INTERNATIONAL RELATIONS AND COOPERATION

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