SA Pushes for Fair Capital Access at OECD Ministerial Council in Paris

South Africa is taking a firm stand on international financing disparities that continue to hinder African development, as Ministers Ronald Lamola and Parks Tau lead the nation’s delegation to the 2025 Organisation for Economic Co-operation and Development (OECD) Ministerial Council Meeting in Paris.

Minister of International Relations and Cooperation, Ronald Lamola, and Minister of Trade, Industry, and Competition, Parks Tau, arrived in the French capital on Monday ahead of the two-day meeting that runs from Tuesday to Wednesday. The annual OECD gathering brings together global leaders to discuss economic policy and cooperation, with this year’s event chaired by Costa Rica and supported by Australia, Canada, and Lithuania as Vice-Chairs.

The theme for the 2025 meeting—“Achieving Resilient, Inclusive, and Sustainable Prosperity”—focuses on enhancing cooperation in trade, investment, innovation, and development finance. Ministers from OECD countries and strategic partners are engaging in high-level dialogues on the most pressing global economic challenges and opportunities.

Africa’s Development Financing Crisis in Focus

For South Africa, the spotlight is on the unjust financial conditions African nations face on the global stage. Minister Lamola emphasized that African countries are subjected to exorbitant borrowing costs, often paying interest rates that are up to 500% higher than those of developed nations when accessing international capital markets.

This alarming figure was spotlighted in the 2024 African Development Bank (AfDB) Economic Outlook Report, which underscores how global bond markets impose punishing premiums on African economies, even as many of them demonstrate fiscal discipline and growth potential.

“Ministers Lamola and Tau will use this platform to call for urgent OECD-G20 cooperation to address the egregious capital access premiums that African nations endure,” the Department of International Relations and Cooperation (DIRCO) said in a statement.

Calling for Reforms Under the G20 Presidency

South Africa, which currently holds the presidency of the Group of 20 (G20), has made financing for climate-resilient and sustainable infrastructure a priority. The country has proposed a series of reforms aimed at democratizing access to development finance, particularly for emerging economies burdened by colonial legacies and current economic inequalities.

“As G20 Chair, South Africa believes multilateral cooperation is not optional—it is essential. Unilateral financial practices that distort markets and restrict development finance pose a real threat to global progress,” DIRCO added.

The Ministers are expected to present a compelling case that unless borrowing costs are drastically reduced, Africa’s long-term development, particularly its urban infrastructure and renewable energy transitions, will remain stifled.

Multilateralism and the Need for a Just Economic Order

Minister Lamola stressed that South Africa’s participation in the OECD meeting is part of a broader commitment to dismantling systemic financial barriers that impede the continent’s progress.

“Africa’s prosperity cannot be deferred any longer,” said Lamola. “South Africa is in Paris to argue for a fair, transparent, and rules-based global financial system that serves all, not just the privileged few.”

He warned that persistent inequality in global finance not only undermines development but threatens to erode faith in multilateral institutions.

Strategic Economic Goals and Inclusive Growth

Minister Parks Tau highlighted that South Africa’s engagement with the OECD is guided by four strategic objectives: attracting higher levels of investment, ensuring inclusive and broad-based economic growth, reducing unemployment, and addressing poverty and inequality.

“Our message to the OECD and its partners is clear: inclusive growth is the foundation for stable societies. And to achieve that, investment must be fair, financing must be accessible, and cooperation must be genuine,” said Tau.

The Minister also emphasized that African countries should not be penalized for challenges outside their control, such as climate change impacts or global interest rate fluctuations, which further inflate their borrowing costs.

The OECD as a Global Policy Platform

With over 100 partner countries, the OECD functions as a knowledge hub for data-driven policy, offering research, best practices, and policy recommendations across sectors. Although South Africa is not an OECD member, its active participation in forums like the Ministerial Council highlights its role as a key voice for the Global South.

The Council serves as a platform for OECD and partner countries to collaborate on shared goals including climate action, digital innovation, sustainable infrastructure, and governance reform.

Looking Ahead: From Advocacy to Action

The South African delegation is expected to push for concrete outcomes from the meeting, including a review of international credit rating mechanisms, a reassessment of risk premiums on African debt, and more inclusive decision-making structures in multilateral financial institutions.

The country’s participation signals a broader shift toward a global economic order that prioritizes equity, sustainability, and inclusion—principles that are at the core of its G20 presidency.

“South Africa’s presence in Paris is not just symbolic—it is a strategic intervention aimed at building a global economy where African voices are heard and their needs addressed,” said Minister Lamola.

As the OECD meeting continues, all eyes are on whether the world’s leading economies will respond with the urgency and fairness required to reshape global finance for the betterment of all nations.