By Kopano Gumbi

JOHANNESBURG (Reuters) – United Nations Secretary-General Antonio Guterres stated on Wednesday that current debt relief mechanisms are inadequate for addressing global vulnerabilities, urging the Group of Twenty nations to enhance their efforts for financial justice.

During his visit to South Africa, the first African country to lead the G20 this month, Guterres voiced concerns about the G20's "Common Framework". This debt relief system was implemented during the COVID-19 pandemic to support heavily indebted nations, but has faced criticism for slow restructurings in countries like Zambia.

"I acknowledge the G20's efforts with the so-called 'Framework', but let's be clear. We still lack an effective tool to tackle the global debt crisis," Guterres remarked at a G20 event in Johannesburg. He highlighted the necessity for meaningful solutions to enable countries to meet their people's basic needs and foster long-term development.

Moreover, Guterres emphasized the need to reform global governance institutions to better serve African nations and called for a greater role for multilateral development banks and increased concessional funding. He warned that boosting gross domestic product (GDP) shouldn’t be the sole focus. "It's crucial to also address vulnerability," he insisted.

South African Finance Minister Enoch Godongwana expressed at the same event that tackling debt vulnerabilities would be a priority during his country’s G20 presidency. He mentioned that South Africa will propose the establishment of an expert panel dedicated to assessing Africa's financing requirements, emphasizing that "debt sustainability cannot be resolved through the Common Framework alone."