Neelam Rahim | neelam@radioislam.co.za
3-minute read | 14 November 2025 | 11:35 CAT

South Africa gears up to host the G20 Summit in Johannesburg next week, spotlighting Africa’s push for debt relief, climate finance, and industrialisation.

South Africa’s economic landscape and global engagement were highlighted this week as the government released its Medium-Term Budget Policy Statement (MTBPS) for 2025 and prepared to host the G20 Summit in Johannesburg. Rashad Amra, in this week’s ASRI Report on Radio Islam International, explained that the MTBPS provides a three-year outlook on government spending, allowing departments to plan for healthcare, education, infrastructure, and social development programs while anticipating revenue shortfalls. “It provides an early warning if there’s going to be a contraction of expenditure or a longer-term path,” Amra said.

The 2025 MTBPS is the second under the Government of National Unity, a coalition that requires negotiation across political lines. “You have several parties making up a Government of National Unity, with different understandings of the economy, with different levels of commitment to social justice and addressing the wrongs of the past. So, you have a lot more contestation internally,” Amra explained.

The South African Reserve Bank also played a decisive role in shaping the budget, advocating for a lower inflation target that impacts growth and revenue. “This particular MTBPS was disproportionately shaped by the Central Bank…which means that Treasury’s attempts to settle and level debt as a share of GDP over the medium term is going to require further expenditure cuts,” Amra noted. The outcome is a constrained budget with no increased allocations for critical areas such as healthcare amid reduced international support for HIV and TB programs and expanded early childhood development initiatives.

On the global stage, South Africa hosts the G20 Summit next week, bringing together leaders from the world’s 20 largest economies, which together represent 80% of the global economy. Amra emphasised the summit’s significance for Africa, noting priorities such as debt justice, industrialisation, climate finance, and reform of multilateral institutions, including the IMF and the World Bank. “Africa is pushing for a fairer global system to see whether there’s any progress on debt relief, on climate finance and industrialisation financing,” he said, noting that $100 billion annually has been pledged to improve climate resilience in the Global South.

While summit declarations are often non-binding, they signal intent and global commitment to key issues. “These declarations may follow up…with more digitization of the economy, it’s becoming more difficult for countries to track trade and ensure accountability,” Amra said. South Africa’s leadership at the summit, alongside its role at the International Court of Justice, positions the country to champion Africa’s economic and social priorities, even if tangible results remain gradual.

As citizens prepare for the G20 in Johannesburg, monitoring outcomes on debt restructuring, climate finance, industrialisation, and fairer global trade will be critical indicators of the summit’s success for South Africa and the continent.

Listen to the full ASRI Report on Sabahul Muslim with Moulana Ibrahim Daya and Rashad Amra.