Debt Crisis Criticism: South Africa Urged to Make G20 Impact

165 organizations have criticized South Africa for lack of progress on debt sustainability during its G20 presidency. They demand reform and debt relief, urging actions like IMF gold reserve sales for debt relief. High borrowing costs hinder development and climate action, especially in developing nations.

On Monday, a total of 165 organizations criticized South Africa for its stagnant progress on debt sustainability issues during its tenure as the G20 President. The organizations are urging the country to push for necessary reforms before the U.S. takes over on December 1.

In a formal letter addressed to South African President Cyril Ramaphosa, released in coordination with the annual International Monetary Fund and World Bank meetings in Washington, the groups demanded the cancellation of unsustainable and illegitimate debts to free up critical funds for education, health, gender equality, and climate resilience. Significant reforms in debt restructuring and support for an African Credit Rating Agency and a Borrowers Club have been recommended.

The organizations noted that developing countries are burdened with enormous debt, worsened by former U.S. President Donald Trump's tariffs. According to the World Bank, as many as half of approximately 150 developing countries struggle with debt service payments. Despite claims by the groups of some progress under the G20's Common Framework, they argue significant changes are needed to address the global debt crisis effectively.

(With inputs from agencies.)