(Reuters) – South Africa expressed disappointment on Thursday, February 28, 2025, after the Group of 20 (G20) talks it hosted on global economic issues failed to reach a consensus. The two-day meeting of finance ministers and central bank governors in Cape Town ended without a joint communique, reflecting deep divisions on key issues such as climate finance.
A “chair’s summary”, issued in place of a formal communique, stated that participants had “reiterated the commitment to resisting protectionism.” It also affirmed support for a “rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable, and transparent multilateral trading system.” However, several of these terms have previously been contested by the Trump administration.
South Africa had hoped to use the G20 platform to push wealthier nations to take stronger action on climate change, increase financial contributions to support developing countries’ green energy transitions, and advocate for financial system reforms that address imbalances favoring investment banks over heavily indebted nations.
However, the discussions were overshadowed by the absence of key finance leaders, including representatives from the United States, China, India, and Japan. The situation was further complicated by cuts to foreign aid by major economies such as the United States and the United Kingdom, amid rising geopolitical tensions.
South African Finance Minister: ‘Not Happy’ with the Outcome
South African Finance Minister Enoch Godongwana expressed frustration over the failure to issue a joint communique.
“I’m not going to (name) … any specific country, but climate issues are becoming a challenge for the first time,” Godongwana told Reuters after releasing the G20 summary.
“I think there is a view that we should prioritize other things over climate financing,” he added.
During an earlier press conference, he acknowledged differences of opinion on climate action but noted that, “there has been general agreement against protectionism and economic fragmentation.”
Concerns Over Global Economic Stability
Following the meeting, Bank of Japan Governor Kazuo Ueda warned that rising geopolitical tensions and supply chain disruptions could threaten the G20’s broader economic goals.
“The broader G20 view was that if downside risks like geopolitical tension and supply chain disruptions materialize, that could hamper the G20 goal of achieving sustainable, balanced global growth,” Ueda told reporters.
The G20, which accounts for 85% of global GDP and 75% of international trade, was originally established in response to the 1999 Asian financial crisis to enhance international economic cooperation.
With a formal consensus proving elusive, the “chair’s summary” has become a common feature of multilateral meetings where agreement cannot be reached.
On the state of the global economy, the summary highlighted that growth patterns varied across countries, and that several risks and trends had been discussed.
“Inflation has receded, supported by well-calibrated monetary policies and the unwinding of supply shocks, although progress has varied across countries,” the summary noted.
Despite the lack of a unified declaration, South Africa’s hosting of the G20 talks underscored ongoing efforts to bridge economic divides and push for more equitable global financial policies.
