President Cyril Ramaphosa has called on global finance institutions to reform their practices to address the growing challenges faced by emerging and low-income economies. Speaking at the World Economic Forum (WEF) in Davos, Switzerland, Ramaphosa emphasised the need for more inclusive financial mechanisms, particularly the redirection of Special Drawing Rights (SDRs) to support development.
READ MORE: President Cyril Ramaphosa’s full speech at WEF
“It is simply, in our view, not fair that over 60% of Special Drawing Rights go to a handful of wealthy countries. These drawing rights should be redirected to enable countries in Africa and other parts of the Global South to realise their developmental aspirations – to enable them to invest in infrastructure, in industrial development, in education and training, and in healthcare.”
Ramaphosa further highlighted the inequalities between nations – pointing to unpredictable financing, high levels of debt and climate vulnerabilities as obstacles to progression in the Global South. He says these challenges, as well as poverty, terrorism and the migration to artificial intelligence, are demanding mutually beneficial collaboration from all nations.
As South Africa prepares to host the G20 Summit in Johannesburg later this year — marking the first time the summit is held in Africa — Ramaphosa outlined the country’s priorities under the themes of solidarity, equality, and sustainable development at the WEF.
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He urged the G20 to focus on inclusive economic growth and support for African industrialisation through investment in green technologies among other things.
“Many agree that Africa is the next frontier of global growth and productivity. The African continent has an unrivalled natural resource endowment, with the youngest population of all continents. We seek investments in the development of skills that will also fuel this infrastructure revolution, particularly for Africa’s youth and the economic empowerment of women of our continent.”
Ramaphosa concluded by highlighting the success of the Government of National Unity (GNU) since its inception. With this in mind, he noted that the G20 in November will put cooperation and collaboration between emerging and leading economies in the spotlight.
“The seeds of human progress were sown in Africa. In Africa, the earliest forms of cooperation were forged and developed. As the leaders of the G20 return to Africa, we make a call that we all harness these essential capabilities that will make us take action to build a better and a fairer world.”
Tonight, as we enjoy the richness of South African culture let us also remember the values that unite us.
Ubuntu calls on us to see each other, to uplift one another and to act with compassion and purpose.
— Cyril Ramaphosa 🇿🇦 (@CyrilRamaphosa) January 21, 2025
