By WASHINGTON/JOHANNESBURG, Oct 15 (AfrikTimes) – South African Reserve Bank Governor Lesetja Kganyago warned on Wednesday that rising global debt has become a major threat to financial stability.
Speaking on the sidelines of the International Monetary Fund and World Bank annual meetings in Washington, Kganyago said the Financial Stability Board, which reports to the G20, had elevated debt to a top-tier global concern.
According to IMF projections, global public debt is expected to surpass 100% of global output by 2029, with the organization cautioning that under an “adverse but plausible” scenario, debt could reach 123% of GDP by the end of the current decade – levels not seen since the aftermath of World War Two.
“The issue of debt is not an emerging market problem,” Kganyago said. While African nations face liquidity and fiscal challenges related to debt, “the debt is now a global issue, and it is a problem in the developed economies as well,” he added.
Debt sustainability is expected to dominate discussions at the G20 meeting of finance ministers and central bankers, which concludes on Thursday. The group is expected to issue a joint declaration addressing global debt as South Africa prepares to hand over its presidency to the United States.
South Africa’s Reserve Bank Governor Lesetja Kganyago addresses the media during a press conference concluding the G20 finance meeting in Durban, South Africa, July 18, 2025.
Kganyago said South Africa had focused on maintaining continuity during its presidency, highlighting progress in elevating cross-border payments within the G20 framework.
However, civil society groups have criticized Pretoria for slow progress on debt relief. In a letter signed by 165 organizations, including Eurodad and the Malala Fund, campaigners urged G20 leaders to advance deeper debt restructuring reforms and provide greater relief for developing nations.
IMF fiscal chief Vitor Gaspar warned separately of a potential fiscal-financial doom loop triggered by prolonged borrowing and high interest rates, urging governments to rebuild financial buffers.
Kganyago said discussions were ongoing regarding how the incoming U.S. presidency would continue the African agenda on debt and financing costs.
“Tomorrow, at the end of the meeting, we will know exactly what they are taking off, because in their accepting the chair, then they will state what they are carrying from the previous presidency, and what are they bringing in their presidency,” he said.
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Highlighting achievements under South Africa’s leadership, Kganyago pointed to the elevation of cross-border payments within the G20 framework.
“It had proved to be a very good proposition, because that is something that everybody had signed off on, including the U.S., which is a very important participant in that cross-border payment committee,” he said.
