Durban — Finance ministers and central bank governors from the world’s largest economies have gathered in Durban, South Africa, for the G20 Finance Ministers' Meeting. The summit, held under the theme “Solidarity, Equality, Sustainability,” takes place under heightened global economic uncertainty, largely fueled by escalating trade tensions and notable absences from key leaders, including U.S. Treasury Secretary Scott Bessent.
One of the most pressing concerns shadowing the summit is the potential imposition of broad tariffs by the United States. President Donald Trump has signaled a new wave of trade protectionist measures, including 10% tariffs on all imports and higher rates targeting specific sectors such as steel, aluminum, automobiles, and pharmaceuticals. This has sparked significant anxiety among global trade partners, especially among BRICS nations, including host country South Africa.
Bessent's decision to skip the Durban summit, choosing instead to attend the World Expo in Osaka, has raised eyebrows and questions about the United States’ commitment to multilateral dialogue. In his absence, Acting Undersecretary for International Affairs Michael Kaplan is leading the U.S. delegation. The U.S. move mirrors no-shows by other key figures from countries such as India, France, and Russia, leading to growing concerns over the weakening relevance of the G20 as a platform for cohesive international policymaking.
South Africa, hosting the G20 for the first time, is using the opportunity to champion African development issues. Key priorities include addressing the high levels of debt distress across the continent, advocating for increased access to climate finance, and pushing for reforms that would allow multilateral development banks to better support the Global South. Calls are also being made to enhance capital access and lower borrowing costs for African nations.
Among the initiatives being promoted is a continent-wide cross-border payment system to support intra-African trade. However, South African officials emphasized that the system is intended to strengthen internal African markets, not to bypass global financial structures.
The country is also seeking to revive momentum for the G20 Common Framework on debt treatment, urging the group to extend debt relief mechanisms to middle-income countries that have been severely impacted by the COVID-19 pandemic and its economic aftershocks.
Efforts are underway to reach a consensus on a communique, which would mark the first official statement from G20 finance ministers since July 2024. However, with the backdrop of rising geopolitical tensions, protectionist economic policies, and shifting global alliances, reaching such an agreement may prove challenging.
Markets responded cautiously to the summit’s kickoff. The South African rand weakened slightly, falling about 0.4% against the U.S. dollar, while the yield on the country’s benchmark 2035 bond rose modestly, reflecting investor wariness over the uncertain outcome of the talks.
Looking ahead, the Durban summit sets the stage for the G20 Leaders’ Summit scheduled for November 22–23 in Johannesburg, which will be the first of its kind held on the African continent. Whether the finance ministers’ discussions can pave the way for meaningful progress remains uncertain as the G20 grapples with internal divisions and shifting global power dynamics.