Editor's Note

The year 2025 marks a historic turning point in Africa’s role in global economic governance. An African country, South Africa, will preside over the G20, the world’s most influential economic platform. This moment offers the African continent a rare opportunity to assert its interests, amplify the voices of the developing world, and lead global efforts towards a fairer, more equitable, and sustainable future.

Multiple challenges confront the world today: rising geopolitical tensions between countries, a deepening economic and development crisis, a dearth of decent jobs, and the escalating climate emergency. Geopolitical risks, particularly the polarisation and conflicts between major powers, notably the United States (US) and China, continue to generate countless ripple effects across the global economy. Economic uncertainty has intensified amid rising tariffs and an increasingly unpredictable policy environment. The International Monetary Fund (IMF) has downgraded its global growth forecasts to 2.8 percent for 2025 and 3 percent for 2026, from earlier projections of 3.3 percent for both years.1 While much of the developing world, especially Africa, is experiencing a ‘youth bulge’, this demographic advantage might translate into social instability if young people are unable to access gainful employment. According to World Bank estimates, 1.2 billion young people will reach working age in the Global South.2 For these countries, creating high-quality jobs and investing in education and training to prepare citizens for future-ready employment is of paramount importance. At the same time, the intensifying climate crisis is disproportionately affecting the developing world, with severe consequences for vulnerable populations.

While expectations run high, South Africa’s G20 Presidency faces many hurdles. First, there is widespread ambivalence towards global cooperation, wealthy nations are cutting official development assistance and failing to honour their climate commitments. Second, South Africa’s own influence in international affairs has diminished. Its relationship with the US has deteriorated, particularly following its International Court of Justice (ICJ) case against Israel; the US has been absent from key ministerial meetings despite being part of the G20 troika. South Africa’s economic prospects are constrained by sluggish economic growth, high unemployment, widespread poverty, and persistent corruption. In 2024, gross domestic product (GDP) growth stood at just 0.7 percent.3 The country has one of the highest rates of unemployment in the world with an official unemployment rate of 33.2 percent5 and nearly 40 percent5 of the population living below the national lower-bound poverty line.

The eleven essays in this volume explore the South African G20 Presidency’s core ambitions: solidarity, equality, and sustainability. Leading scholars from India and Africa engage with critical development concerns, including reviving growth and employment in the Global South, championing African development, and financing for development and climate adaptation.

In the first essay, Pamla Gopaul examines Africa’s strategic priorities and pathways for realising Agenda 2063 within a global landscape marked by geopolitical tensions, rising tariffs, declining development finance, and the intensifying impacts of climate change. She argues that Africa is no longer a bystander but a pivotal actor in shaping the norms of international cooperation and that South Africa’s G20 Presidency presents a unique opportunity to redefine multilateralism by aligning continental priorities with global public goods. She identifies five pathways to advance Agenda 2063 within the G20 framework: i. reforming the global financial architecture to ensure financial justice to developing countries; ii. promoting fair trade and facilitating technology transfer to support African industrialisation; iii. establishing a dedicated adaptation fund to provide long-term, predictable finance for developing countries and support for green industrialisation iv. advancing digital inclusion; and v. rebalancing institutional representation through reforms of global institutions such as the IMF and the World Bank.

In the second essay, Sabina Dewan underscores the acute shortage of quality jobs and the growing precarity of work across the Global South, driven by intersecting factors such as technological disruptions, energy transitions, trade shocks, and geopolitical tensions. To address this severe job crisis and the resulting socio-economic disparities, she calls on the G20, under South Africa’s presidency, to reaffirm its commitment to “advancing decent work policies that foster a future-ready workforce”. She further outlines policy priorities to revive growth and jobs: i. strengthening of local ecosystems for job creation and income generation; ii. investing in human capital development; iii. building robust data systems to support adaptive regulatory frameworks; iv. prioritising public interest over commercial imperatives; and v. reinforcing labour market institutions.

Soumya Bhowmick takes a deep dive into economic inequality, which remains a defining challenge across the Global South. He underscores the enduring legacy of colonialism and Apartheid, which systematically dispossessed the majority and concentrated wealth in the hands of a few. To reduce economic inequality and expand upward mobility, he offers three key recommendations for South Africa’s G20 Presidency. First, the G20 should institutionalise comprehensive wealth measurement and redistribution by endorsing a framework that integrates natural capital with traditional assets. Second, it should scale up education reforms and promote digital inclusion. Third, the G20 must prioritise tailored South-South cooperation and embed climate policies within broader social and economic strategies.

Even after nearly 60 years of independence, much of sub-Saharan Africa remains dependent on food imports, and the continent continues to be scarred by persistent hunger and undernutrition. Authors Fuchaka Waswa and Evans Kituyi argue for the urgent need to reimagine national food security policies. They contend that food security is compromised when staples and animal products, readily producible locally, are imported instead. The authors build a compelling case for revitalising domestic food production and supply through reforms in land tenure systems and strategic investments in agricultural development.

Jackline Kagume’s essay examines the pervasive challenge of debt, which is intricately linked to Africa’s growth trajectory. In recent years, debt burdens have escalated to unsustainable levels across many African countries. Over-indebtedness poses major challenges to the continent’s development prospects, as many countries have limited fiscal space for health and education investments. Kagume argues that sustainable debt management requires a multi-pronged approach: fiscal consolidation and disciplined public spending; enhanced oversight and debt transparency initiatives; innovative financing mechanisms; and greater citizen engagement and public discourse. The author emphasises that debt sustainability must be placed at the centre of the G20’s agenda under South Africa’s presidency.

In the next piece, Prabhat Upadhyaya laments the rapid marginalisation of climate change on the policymaking agenda due to geopolitical tensions. He calls for urgent efforts to safeguard the climate agenda through three key actions. First, mobilising financial resources to support the implementation of Nationally Determined Contributions (NDC). Second, addressing the leadership vacuum within the United Nations Framework Convention on Climate Change (UNFCCC), created by the withdrawal of the US, by encouraging greater engagement from BRICS countries. Third, promoting international cooperation and navigating a global landscape that is increasingly shaped by narrow self-interest.

The following two essays examine the critical role of nature-based solutions in addressing climate vulnerability across Africa. Gopalika Arora argues that conventional grey infrastructure is insufficient, and that ecosystem-based adaptation must be prioritised as a sustainable alternative. Given its ecological wealth, Africa is well-positioned to shape a green growth agenda through nature-based pathways. However, financial policy, and technical barriers continue to hinder the transition of nature-based solutions from fragmented pilot initiatives to scalable, investment-ready interventions. She recommends innovative financial instruments to attract capital, enhanced institutional coordination, and knowledge-sharing mechanisms. Malik Dasoo underscores ecosystem-based adaptation as the foundation for climate- proofing African cities, particularly due to its lower costs, direct climate impact, and Africa’s natural advantage. He highlights successful examples, such as Cape Town’s urban resilience initiatives, the Sustainable Land Management Project, and the restoration of Lake Tana in Ethiopia.

Sunaina Kumar and Judith Mwaniki underline the role of women-led collectives in advancing the Sustainable Development Goals (SDGs). These collectives enable women to access resources and financial services, generating income, fostering empowerment, and amplifying their voices in decision-making processes. Across India and Africa, women-led collectives are playing a critical role in promoting gender equality, alleviating poverty, and driving economic transformation. The authors advocate for the initiation of India-Africa joint projects through partnerships with civil society organisations and grassroots women’s groups, harnessing South-South and triangular cooperation, and mobilising public and private financial resources to strengthen women-led collectives.

The penultimate essay by Baratang Miya foregrounds the persistent digital divide in the Global South, where exclusion is driven by intersecting barriers such as limited public financing, and a massive digital skills gap. She argues that bridging this divide is a foundational prerequisite for achieving inclusive and equitable development. Among her key recommendations are the adoption of a Global Digital Compact; the introduction of financial instruments such as debt-for-digital swaps; and the establishment of a ‘G20 Resilience Fund’ to support digital infrastructure and capacity-building in underserved regions.

In the final essay, Vera Songwe observes that Africa’s mineral endowment has yet to catalyse the continent’s economic and societal transformation. She argues that the global energy transition presents a strategic opportunity for African nations endowed with critical minerals. However, this potential can only be realised through targeted reforms. First, countries must ensure that mining contracts must be structured to reflect the needs of local populations and ensure a steady stream of revenue. Second, local economies should be strengthened through local content and procurement policies. Third, local or national ownership must be supported by sound fiduciary practices and effective oversight mechanisms. Finally, countries must invest in infrastructure, energy systems, transport networks, and workforce development to enable the smooth and sustainable operation of mining activities.

Read the monograph here.

All views expressed in this publication are solely those of the authors, and do not represent the Observer Research Foundation, either in its entirety or its officials and personnel.

Malancha Chakrabarty is Senior Fellow and Deputy Director (Research), Observer Research Foundation.

• International Affairs
• Africa
• India
• 2025 g20 johannesburg summit
• economic outlook in Africa
• g20 leaders summit 2025
• g20 presidency 2025
• g20 summit 2025
• g20 summit theme 2025
• south africa economy
• south africa g20 presidency
• south africa g20 summit

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