What to expect as African Union makes first appearance as permanent G20 member

In September 2023, the African Union Commission was admitted as a permanent member of the G20. At the 2024 G20 Summit in Rio de Janeiro, Brazil which started on November 18, the AU makes its first appearance as a permanent member.

According to experts, Africa’s agenda for this year’s G20 Summit includes solving the debt crisis, global taxation systems, and climate financing. This year’s G20 Summit also paves the way for 2025 G20 Summit to be held in South Africa, the first ever to be held in Africa.

Since 2020, the unsustainable nature of the debts accrued by different African countries has come to the forefront, becoming a critical agenda item in multilateral and bilateral engagements. Conversations among global financial institutions, regional bodies, and international partners now frequently revolve around debt restructuring, relief measures, and the establishment of frameworks to mitigate future fiscal crises.

Mavis Gyamfi-Owusu, the President and CEO of the Africa Centre of Economic Transformation noted, “Africa’s priorities in the global financial system are clear: increasing concessional finance, solving the debt crisis, making risk and valuation assessments fairer, curbing illicit financial flows, and developing an international tax framework that ensures African countries get their fair share of global taxes.”

Just like Gyamfi-Owusu highlighted, an international tax framework is another priority for African countries in the global financial discourse. In October 2021, 136 countries within the OECD Inclusive Framework on Base Erosion and Profit Shifting reached a political consensus on implementing significant reforms to the international corporate tax system.

Countries like Nigeria and Kenya had expressed opposition to the agreement in the past.

Faten Aggad, the Executive Director of Africa Future Policies Hub also identified debt as a key issue during the G20 Summit.

She noted, “Debt is a key issue for the continent, and South Africa will be expected to open up dialogue around the G20 Common Framework. Similarly, the G20 should reflect on how to cushion debt risk for the future and discuss options to reduce the cost of capital for the climate transition as a way to ensure an equal transition for all.”

It is also expected that African leaders will push back against proposed carbon tax regimes, arguing that such measures could undermine the competitiveness of their exports.

According to reports and analysis, carbon taxes would have adverse effects on the African population. An analysis carried out by the African Policy Research Institute found that the introduction of a carbon levy is projected to decrease the availability of maritime shipping services across African countries by as much as 7percent.