Finance Minister Enoch Godongwana
Finance Minister Enoch Gondongwana has reiterated the South African national government’s stance on the persistent conflict in Ukraine, stating that diplomacy and dialogue are key to restoring peace in the region, as per the United Nations Charter.
He cited the economic impact the war was having on South Africa and other African economies, particularly through financial markets and inflationary pressures, as well as sharp fuel and food price increases, at a time when these economies are still recovering from Covid-19 impacts.
The Minister, in addressing a delegation to the 2022 Spring Meetings of theInternational Monetary Fund (IMF) and World Bank Group (WBG) from April 18 to 23, also took it upon himself to stress South Africa’s commitment to addressing climate change based on sustainable development.
South Africa’s Nationally Determined Contribution and emissions targets will require investment of about $4-billion a year by 2030 to meet climate change mitigation needs.
Particularly, Godongwana highlighted how international concessional finance would be key to supporting South Africa’s green energy transition.
He mentioned that the Presidential Climate Finance Task Team would advise the country on the execution of a “Just Energy Transition” plan, to ensure the livelihoods of communities affected by the transition are secured.
Gondongwana further underlined his concern about the slow progress under the Group of Twenty Common Framework for Debt Treatments, which is meant to assist countries responding to economic fragility, conflict and violence.
He was concerned that the Common Framework was not assisting those in need.
The Minister also engaged the leadership of the WBG about mobilising support for specific sectors that are critical to reviving the South African economy.
He affirmed South Africa’s commitment to deepening relations with multilateral development banks.
Godongwana also used the occasion to hold bilateral meetings with US Treasury Secretary Janet Yellen, IMF MD Kristalina Georgieva and WBG president David Malpass, during which he reaffirmed some of South Africa’s policy positions.