P20 Summit Hears Calls to Reform Global Lending Institutions for Fairer Access by Global South

The high cost of borrowing and mounting debt continue to hinder progress towards achieving the Sustainable Development Goals (SDGs), the Chairperson of the National Council of Provinces, Ms Refilwe Mtshweni-Tsipane, told delegates during the 11th Parliamentary Speakers’ Summit.

The Summit, which brings together Speakers and legislators from the parliaments of G20 countries, is being held in Kleinmond, Western Cape. Ms Mtshweni-Tsipane addressed a session focused on government debt.

The Chairperson said that although there were irrefutable benefits when debt is channelled towards development, the high debt costs are draining vital public resources. “Since 2020, developing regions have been borrowing at rates that are two to four times higher than those of their developed counterparts. This inequality in the global financial system must be levelled so that developing countries can access funds at reasonable rates to fulfil their development needs,” she said.

She added that developing countries now spend more on debt servicing than on essential public services such as healthcare and education. “Altogether, approximately 3.3 billion people reside in countries where spending on interest payments surpasses that on either education or health.”

The Deputy Speaker of Russia’s Federal Council, Mr Konstantin Kosachev, echoed these sentiments, noting that the Global South spends more on debt interest than on its development priorities. “Most poorer countries are unable to generate economic growth. The uneven lending patterns and nature of investments can largely be traced to the West’s neo-colonial policies,” Mr Kosachev said.

He said that these practices are underpinned by the West’s dominance in global finance, which allows developed nations to service debt at low rates. “At the same time, debt restructuring is an uphill battle for the developing countries.” He said efforts to address the debt crisis must be non-discriminatory and ensure equal access to credit from multilateral financial institutions. The Russian delegate said it was counterproductive when the same West decides on how to restructure the debt. Mr Kosachev said Russia supports the reform of lending institutions and urged the International Monetary Fund and World Bank to adhere to their original mandates.

South Africa currently holds the presidency of the G20, and Parliament is hosting the P20 Speakers’ Summit – a gathering of Speakers and Presiding Officers from parliaments of G20 member countries. The P20 represents the parliamentary arm of the G20 and is designed to enhance legislative cooperation on global development challenges.

Sibongile Maputi
2 October 2025