It was a big moment at the Group of 20 (G20) summit in Delhi, India, after the unanimous approval of the African Union (AU) as a permanent member of the now G21 group.
This is a group of sovereign countries, the European Union (EU) and now the African Union (AU) of the world’s largest economies, including those of developing nations.
The finance ministers and central bank governors from 19 sovereign countries include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa (the AU’s only G20 member with a $399-billion GDP), South Korea, Turkey, the UK and the US.
Spain is invited as a permanent guest.
Formed in 1999, the G-20 works to address major issues related to the global economy. It promotes global economic growth, international trade, international financial stability, regulation of financial markets, climate change mitigation and sustainable development.
Together, the economies of the G-20 countries represented more than 80% of the gross world product, 75% of world trade, and 60% of the world population.
The G-20’s ranks include all members of the Group of 7, a forum of the EU and the seven countries with the world’s largest developed economies, namely France, Germany, Italy, Japan, the US, the UK and Canada. The G-7 has been described as more of a political body because all its meetings have included not only finance ministers but chief ministers, including presidents and prime ministers.
Some of the G-20’s operations have drawn controversy. Concerns include transparency and accountability.
Some of the group’s policy prescriptions have also been unpopular, delinquent in combating climate change and failing to address social inequality and global threats to democracy.
Former US president Barack Obama noted the challenge of determining who can join such a powerful group.
Indian Prime Minister Narendra Modi last week welcomed the AU during the first day of the multilateral summit in New Delhi. This is a powerful acknowledgement of Africa’s GDP estimated at roughly 3.1-trillion dollars, its 55 member states with a young population of 1.3-billion , which is set to double by 2050.
The timing could not have been better as Africa continues to seek a more important role on the global stage.
Africa also wants reforms to a global financial system – including the World Bank, which forces African countries to pay more than others to borrow money, and thereby deepening their debt.
Africa is increasingly courting investment and political interest from a new generation of global powers beyond the US and the continent’s former European colonisers. China is Africa’s largest trading partner and one of its largest lenders.
Russia is its leading arms provider. Gulf nations have become some of the continent’s biggest investors. Turkey’s largest overseas military base and embassy are in Somalia.
Africa has never been a poor continent, only poorly managed.
Now, as a high-profile G21 member, Africa’s demands will be harder to ignore.
Previously, the 2019 G-20 Osaka summit focused on the global economy, trade and investment, innovation, the environment, just energy transition, employment, women’s empowerment, development and wellness.
US President Joe Biden and Saudi Arabia’s Mohammed Bin Salman announced an economic corridor connecting Europe with the Middle East and India through a combination of rail and sea routes during a session at the G21 leaders’ summit.
The proposed corridor aims to establish seamless trade routes and ports connecting India, Saudi Arabia, the United Arab Emirates, Jordan, Israel and the EU.
Known as the Partnership for Global Infrastructure Investment, this project has the potential to accelerate trade between India and Europe by up to 40%.
This will help deal with the lack of infrastructure needed for growth in lower and middle-income nations.
Many G21 nations have expressed interest in joining this alliance. The production of biofuels from biomass or organic materials, has the potential to lower greenhouse gas emissions and help the world reach net-zero carbon emissions.
Notably, the US, Brazil, and India – the world’s top producers and users of biofuels – will lead the establishment of the Global Biofuels Alliance and other interested countries.
This collaborative project will strongly emphasise sustainability, market expansion and information exchange to advance the use of biofuels globally.
- Professor Mohale is the chancellor of the University of the Free State, author of the two best-selling books, Lift as you Rise and Behold The Turtle.
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