Godongwana warns of looming solvency challenges for some developing nations

JOHANNESBURG - Finance Minister Enoch Godongwana has warned of looming solvency challenges for some developing nations as the G20 bloc scrambles to find solutions to global debt.  

Godongwana made the comments at the start of a meeting of the G20 finance track, where finance officials from member states met in Sandton.  

This week’s meetings set the tone for South Africa’s 2025 G20 presidency, which kicked off earlier in December.  

In addition to a range of other global issues, G20 member states have broadly agreed that finding solutions to the debt crisis also needs to be top of the agenda.  

South Africa has committed to focusing on challenges faced by Africa, including the continent’s external debt, which is more than $600 billion.  

Godongwana said solutions to debt will need to be wide-ranging.  

“We are aware that there are countries whose debt is sustainable, but which are facing acute liquidity challenges, which if not addressed, could result in solvency challenges. These challenges necessitate a comprehensive approach to debt sustainability, which means there is no one-size-fits-all approach.”