By: Mathias Hangala
President Netumbo Nandi-Ndaitwah says developing countries need fair and transparent international lending institutions to ensure equitable access to global finance.
She made these remarks on Saturday while addressing delegates at the recently concluded G20 Summit in South Africa.
The G20, an intergovernmental forum comprising 19 sovereign countries, the European Union (EU), and the African Union (AU), convenes annually to discuss issues related to the global economy, financial stability, climate change, and sustainable development.
This year’s Summit was hosted in Johannesburg, South Africa, from the 22nd to the 23rd of November, under the theme ‘Building an Inclusive and Sustainable Global Economy.’ The gathering was also significant in that it marked the first G20 Leaders’ Summit ever held on African soil.
Nandi-Ndaitwah reiterated the need for reform within international financial institutions, saying lending to developing nations is often perceived as high-risk and, as a result, attracts disproportionately high interest rates that push countries deeper into debt.
“Developing countries find themselves in a debt trap due to the high cost of capital imposed on them based on perceived risks that do not reflect realities on the ground,” she remarked.
The President emphasised Namibia’s commitment to meeting its financial obligations, citing the country’s recent timely redemption of its US$750 million Eurobond.
Despite this demonstration of fiscal discipline, she noted that Namibia continues to be classified as a high-risk country by key global decision-makers.
She argued that meaningful reform of global governance structures is essential.
“Placing people at the heart of sustainable development is the most meaningful way forward. Our focus on advancing the transformation of global governance must be underpinned by the understanding that only an inclusive and interactive system can adequately respond to present-day challenges,” she mentioned.
According to this year’s data from the One Data Organisation, Africa’s external debt currently stands at US$685.5 billion.
It also illustrates that around 20 low-income countries are at high risk of debt distress, with experts warning that a wave of African defaults could trigger severe and long-lasting economic and social consequences, including the loss of access to international capital markets.
Commenting on Namibia’s participation in the Summit, Mourinho Nakakuwa noted the absence of several notable world leaders.
“The G20 Summit is taking place without Donald Trump (USA), Vladimir Putin (Russia), Xi Jinping (China), Javier Milei (Argentina), and Claudia Sheinbaum Pardo (Mexico). This is something President Cyril Ramaphosa and South Africa should reflect on,” he said.
The World Economic Forum (WEF) reports that South Africa assumed the G20 Presidency on 1 December 2024 under the theme ‘Solidarity, Equality, Sustainability.’
It further states that the November Summit marked the culmination of nearly a year of international consultations aimed at bridging the divide between the Global North and South.
Reflecting on South Africa’s leadership, Ronald Lamola, Minister of International Relations and Cooperation, highlighted the guiding principles behind the Presidency.
“When South Africa assumed the G20 Chairship last year, the world was navigating a precarious geopolitical climate. Our response was clear and courageous: the world needs more solidarity, equality, and sustainability. These are not just words, they are the pillars of our Presidency, rooted in the African philosophy of Ubuntu: ‘I am because we are,” Lamola stated.
Although US President Donald Trump had earlier indicated that no US representative would attend the Summit, the nation later announced it would send a delegation led by the chargé d’affaires in South Africa for the purpose of assuming the Presidency, a move the South African government reportedly rejected.
