Global Economic Challenges and Policy Cooperation
The G20 Finance Ministers and Central Bank Governors met on 17 and 18 July 2025, in Durban, South Africa. The discussions focused on the theme of "Solidarity, Equality and Sustainability" under the South African Presidency. The group emphasized the importance of international policy cooperation to foster global prosperity and tackle shared challenges.
The global economy is currently facing heightened uncertainty and complex challenges such as ongoing conflicts, geopolitical tensions, supply chain disruptions, high debt levels, and extreme weather events. These factors impact economic growth, financial stability, and price stability. To address these issues, the G20 highlighted the need for growth-oriented macroeconomic policies that build fiscal buffers, encourage investments, and implement productivity-enhancing reforms. Structural reforms are essential for generating strong economic growth and creating more jobs.
The group also reaffirmed their commitment to maintaining exchange rate stability and ensuring central banks remain independent to achieve price stability. Strengthening multilateral cooperation was identified as a key priority, with a focus on the World Trade Organization (WTO) and its role in advancing trade issues. The G20 recognized the need for meaningful reform within the WTO to improve its functions and relevance in today’s global economy.
International Financial Architecture
The Multilateral Development Banks (MDBs) are implementing the G20 MDB Roadmap and the Capital Adequacy Framework (CAF) Report. Progress has been made in developing a Monitoring and Reporting Framework, with an inaugural report expected in October. The CAF aims to help MDBs utilize existing resources more efficiently, share risks with the private sector, and increase lending capacity over the next decade.
The G20 supports the 17th replenishment of the African Development Fund and emphasizes the strategic importance of strengthening partnerships with African economies. Efforts to address debt vulnerabilities in low- and middle-income countries were also highlighted. The G20 reaffirmed its commitment to the Common Framework (CF) for debt treatment and welcomed the availability of fact sheets on CF cases to enhance transparency.
Special Drawing Rights (SDRs) have been channeled effectively, with over USD 100 billion in voluntary contributions directed towards vulnerable countries. The G20 urged swift delivery of pending pledges and encouraged further SDR channeling to MDBs while respecting the reserve asset status of resulting claims.
IMF and Global Financial Safety Net
The G20 reaffirmed its commitment to a strong, quota-based, and adequately resourced International Monetary Fund (IMF). Domestic approvals for the quota increase under the 16th General Review of Quotas have advanced, with a goal of finalizing the process without delay. The realignment of quota shares was acknowledged as important to reflect members’ positions in the world economy while protecting the shares of the poorest members.
The creation of a 25th chair at the IMF Executive Board to enhance the voice of Sub-Saharan Africa was welcomed. The G20 also emphasized the need for greater representation of developing countries in decision-making processes within international financial institutions.
Sustainable Finance
The G20 committed to strengthening the global sustainable finance architecture by fostering coordination among stakeholders. This includes enhancing interoperability between MDBs, climate funds, and national development banks to support sustainability goals. Scaling up co-financing and mobilizing private sector resources through innovative instruments is essential for developing countries' risk-sharing in climate investments.
Efforts to integrate adaptation and resilience into transition plans of financial institutions and corporations were noted. The G20 also recognized the potential of high-integrity, voluntary carbon markets and welcomed the Climate Data Steering Committee's work on a Common Carbon Credit Data Model.
Infrastructure and Financial Sector Issues
Increasing quality infrastructure investment was identified as critical for sustainable economic growth. Progress was noted in developing frameworks for effective planning, blended finance de-risking measures, and cross-border infrastructure projects. The G20 endorsed initiatives to leverage project-level data and digitize pipelines.
Financial sector stability and inclusion were also prioritized. The G20 reaffirmed its commitment to implementing Basel III standards and addressing systemic risks from non-bank financial institutions (NBFIs). The FSB’s recommendations on NBFI leverage were endorsed, and the appointment of Andrew Bailey as the new FSB Chair was welcomed.
International Taxation and Financial Inclusion
The G20 will continue engaging constructively on Pillar Two global minimum taxes, aiming for a balanced solution that addresses risks related to fair treatment of tax incentives and base erosion. The G20 looks forward to reports from the OECD, the Global Forum, and the IMF on tax transparency and revenue administration.
The G20 reaffirmed its commitment to financial inclusion, supporting initiatives that enhance access to financial services for individuals and MSMEs. Innovations in technology were recognized as key to improving financial inclusion.
Joint Finance Health Task Force and Global Initiatives
The Joint Finance-Health Task Force (JFHTF) remains focused on pandemic prevention, preparedness, and response (PPR). Efficient health spending and domestic resource mobilization were emphasized, along with better coordination of funding flows. The G20 welcomed the outcomes of the Fourth International Conference on Financing for Development and renewed commitments to support developing countries.
The G20 concluded its first cycle of meetings in Africa, celebrating Nelson Mandela Day. Discussions centered on creating a better world, embodying the spirit of Mandela’s values. The next meeting is scheduled for October 2025 in Washington, D.C.