Africa’s First G20 Summit: High Hopes or High Stakes?

By Aksah Italo
Published on 12/04/25

When the G20 held its first-ever summit on African soil last week, many had high hopes. The summit ended with a bold declaration, promises of debt relief, climate financing, and new global economic cooperation.

Under African leadership, with Cyril Ramaphosa at the helm, the agenda put Africa and the broader Global South at the center, with plans for food security, industrial growth, clean energy, digital access and climate-resilient development.

The summit was proof “that Africa can lead global negotiations, not just take part.”

“Shared goals outweigh our differences,” Ramaphosa declared, calling the joint statement proof that Africa’s voice now carries real weight in global decision-making.

He emphasized that the G20 leaders’ declaration must be seen as more than diplomatic language, but as a commitment to concrete action that improves lives in every part of the world.

But beneath that optimism lied a critical pivot. The absence of the United States, the world’s largest economy and a pivotal creditor was a major geopolitical spin-off. U.S. officials declined to participate, reportedly rejecting parts of the agenda aligned with African and Global South interests.

Ramaphosa struck a measured tone when addressing the U.S. absence. He described it as a last-minute change of position in Washington, noting that there had been a late communication suggesting attendance was still possible, if further discussion on how it would unfold could take place.

During the two-day summit from November 22 to 23, countries quickly agreed to a joint declaration that pledged faster debt-relief mechanisms for poor and vulnerable countries, more support for least-developed countries, Increased climate-finance to help developing nations adapt to climate change and build sustainable growth.

Shortly after, the white house shot down the possibility of its G20 attendance, calling the adopting the deceleration, without the United state’s input “Shameful”.

African leaders called the declaration a “watershed moment,” and many hoped the G20 would finally shift from talk to action.

But the promises come at a time when many African countries are already under huge financial pressure.

More than half of African nations now carry public debt above 60 percent of their economic output. External debt for the continent has jumped from roughly 500 billion dollars in 2020 to about one trillion dollars in 2024.

For many low-income countries, debt payments consume a large share of government revenues, leaving little money for health, education, infrastructure or climate adaptation.

According to a 2025 statement by the International Monetary Fund (IMF) and African finance ministers, while growth might rebound this year, many countries remain extremely vulnerable. High interest rates, expensive borrowing and global economic shocks all threaten stability.

African debt is “stifling public spending and economic growth”, Cyril Ramaphosa, South Africa’s president, had once said.

So, even if debt-relief promises materialize, the structural challenges, high debt, costly borrowing, squeezed budgets remain.

Economic stress is only part of the problem. Climate change is already hitting Africa hard. Reports show that droughts, floods and heatwaves force many countries to spend upto five percent of GDP each year to respond, and sometimes up to nine percent of national budgets go to emergency relief.

At the same time, climate-adaptation and clean-energy investments are expensive. Africa gets only a tiny fraction of global climate finance. Often, countries must borrow more to fund these projects which pushes up debt even further.

This year’s G20 declaration under Ramaphosa’s presidency was deemed significant as it stressed the urgency of the revision of G20 common framework that allows timely and effective resolutions for debt challenges.

Many researchers argue that if done right with debt restructuring, concessional loans, and climate-sensitive financing G20 action could help unlock stable, sustainable growth rather than short-term fixes.

Policy voices now call for reforms, expand debt-treatment frameworks to account for climate risk and long-term development, not just immediate debt servicing, make creditor coordination more transparent and inclusive (bilateral lenders, multilateral institutions, private investors).

The G20 Common Framework for Debt Treatments, the tool meant to help indebted countries , has only reduced about seven percent of external debt in highly indebted low-income countries to date. Many countries avoid using it because it’s slow, unclear, and often fails to deliver timely results.

Even when debt is restructured, it rarely translates into climate-resilient investments or long-term growth plans.

Credit markets don’t treat climate-vulnerable countries any differently. A 2025 academic study found bondholders don’t attach much extra weight to environmental risk meaning climate-sensitive reforms are unlikely to be rewarded unless global financial rules change.

The complexity of creditors ranging from private bondholders to multilateral lenders makes meaningful, unified debt restructuring extremely difficult. Civil society groups argue current G20 efforts are more symbolic than substantive; they call for comprehensive global finance reforms instead of piecemeal fixes.

The 2025 G20 summit has made important promises , debt relief, climate finance, a new place for Africa in global economic governance. But promises don’t pay bills.

Given high debt levels, rising climate costs, and limited fiscal space, many African countries face a difficult road.

Many agree the G20’s commitments to deliver real change, leaders and creditors must go beyond declarations. Researchers suggest the need strong, transparent action; real debt restructuring, access to low-interest concessional finance, and serious climate-investment programs.

Many agree, If they succeed, the summit could mark a turning point. If not the ambitions risk becoming distant rhetoric.