SA Launches Cost of Capital Commission to Tackle Inequality Under G20 Presidency

Minister Lamola explained that the Commission will investigate challenges impairing developing nations’ access to predictable, affordable capital.

South Africa will establish an ambitious Cost of Capital Commission to address barriers preventing low- and middle-income countries from accessing affordable and sustainable financing. This initiative, set to launch during South Africa’s G20 Presidency, was announced by International Relations and Cooperation Minister Ronald Lamola during a virtual address to the Jubilee and Caritas Internationalis Leaders’ Press Conference in Vatican City.

Minister Lamola explained that the Commission will investigate challenges impairing developing nations’ access to predictable, affordable capital. The findings aim to shape solutions that enhance debt sustainability and fiscal stability, enabling these nations to pursue environmentally responsible and socially inclusive development.

The Commission is a key element of South Africa’s G20 theme: “Solidarity, Equality, Sustainability.” Lamola stressed that inequality—particularly in the Global South—poses the greatest threat to global progress.

• “Entire nations are suffocated under the weight of crippling debt, forcing them to abandon developmental programs simply to service exorbitant obligations,” said Lamola.
• The lack of sustainable financing and capacity-building opportunities for climate action further exacerbates inequality, he added.

Global Debt Relief Campaigns in Focus

The announcement coincides with the launch of debt relief campaigns in 160 countries for Jubilee 2025, spearheaded by Pope Francis and faith communities worldwide. The campaigns advocate for alleviating the debt burden on developing nations.

The Jubilee campaign will culminate with the opening of the Holy Jubilee Doors by Pope Francis in January 2025 and end with their closing at St. Peter’s Basilica in January 2026. Lamola applauded the Catholic Church’s leadership in highlighting the devastating impact of debt on human dignity and potential.

South Africa’s G20 Presidency Goals

South Africa assumed the G20 Presidency on December 1, 2024, with a commitment to addressing inequality, reforming international financial systems, and fostering multilateral cooperation.

• Debt Relief Advocacy: The Presidency will work to create consensus around debt cancellation and restructuring mechanisms.
• Global Financial Reform: South Africa will push for accelerated reforms to the international financial architecture, aiming to make systems more equitable for developing nations.
• Multilateralism: Strengthening global cooperation to address shared challenges such as climate action and sustainable development is a top priority.

Call for Global Solidarity

Minister Lamola called on faith leaders worldwide to provide guidance and inspiration for these efforts.

• “We urge faith leaders to continue offering wisdom, compassion, and spirituality to help restore hope and trust for the most vulnerable,” he said.

The establishment of the Cost of Capital Commission is seen as a pivotal step toward alleviating financial barriers, fostering equitable development, and enabling nations in the Global South to thrive. South Africa’s G20 Presidency is expected to emphasize practical solutions for debt relief and sustainable financing, ensuring a brighter, fairer future for all.