G20 finance leaders are meeting in Durban amid global tensions, trade disputes and African debt concerns. (Image courtesy: X/@g20org)
As finance ministers and central bank governors from the G20 gather in Durban, South Africa, German officials have stressed the need to deepen global ties during what they describe as “turbulent times,” according to a report published by Reuters on Tuesday.
“This meeting, like the previous two, is taking place in quite turbulent times,” a German government source told Reuters, adding, “I don’t need to elaborate: it’s clear to everyone.”
Reports suggest Berlin is especially concerned about US President Donald Trump’s looming US tariff threats. A proposed 30% tariff on European goods could have devastating effects for businesses and services alike. “No one benefits as much from open markets and rules-based trade as Germany and Europe do,” the official said, according to Reuters. “And the G20 is a crucial forum for multilateral cooperation.”
US Treasury Secretary Scott Bessent, the report said, is skipping the meeting, continuing a trend that began with his absence at the Cape Town talks in February. His potential no-show to represent the US has caused unease regarding the G20’s future.
“I think it’s problematic not to have the world’s largest economy represented at the table, at least at a senior political level,” Reuters quoted Josh Lipsky of the Atlantic Council as saying. “It raises questions about the G20’s long-term viability.”
Lipsky noted this might foreshadow an American push for a scaled-down G20 when it assumes the presidency next year.
Trump’s widening tariff policies — 10% base tariffs, with penalties going up to 200% on specific imports — are reportedly adding strain, particularly on BRICS members like South Africa. Eight G20 members are now part of the expanded BRICS, raising the risk of forum fragmentation, the report said.
“Policy uncertainty is the biggest theme at this point in time,” Fundi Tshazibana, Deputy Governor of the South African Reserve Bank, reportedly said.
South Africa, hosting the G20 for the first time as an African nation, hopes to champion issues like climate finance and economic justice, even as reports suggest attention has shifted to Africa’s rising debt — which now reportedly stands at $800 billion, and drying external funding.
“Africa is in a difficult space,” economist Lumkile Mondi said, per Reuters. “Investment is going to dwindle because of high levels of indebtedness and low GDP growth.”
Meanwhile, China’s lending slowdown and cuts in Western aid are only exacerbating the issue. According to the report, Trevor Manuel, ex-South African finance minister, has warned that loan transparency and terms must be rethought.
South Africa, reports suggest, hopes to issue a formal Communique by the end of the meetings, with Treasury Director General Duncan Pieterse saying the team was still finalising priorities.
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