---
title: "Expert panel proposes sweeping measures for G20 to refinance low-income nations’ debt"
description: "The proposals include funding the initiative through the use of special drawing rights at the IMF or the sale of the IMF’s gold, which is currently at a record high of over $4,000 an ounce."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "DEVELOPMENT STIMULUS"
author: "Ed Stoddard"
author_url: "https://www.dailymaverick.co.za/author/ed-stoddard/"
canonical_url: "https://www.dailymaverick.co.za/article/2025-11-18-expert-panel-proposes-sweeping-measures-for-g20-to-refinance-low-income-nations-debt/"
published: "2025-11-18T21:15:04"
updated: "2025-11-18T21:15:05"
lang: "en-ZA"
word_count: 459
---

# Expert panel proposes sweeping measures for G20 to refinance low-income nations’ debt

> The proposals include funding the initiative through the use of special drawing rights at the IMF or the sale of the IMF’s gold, which is currently at a record high of over $4,000 an ounce.

By Ed Stoddard · Published 18 November 2025, 23:15 SAST · Updated 18 November 2025, 23:15 SAST

## Key points
- As Africa grapples with a debt crisis that’s more suffocating than a boa constrictor in a hug contest, experts are urging the G20 and IMF to swap debt rescheduling for refinancing, and maybe even cash in on some shiny IMF gold to help lighten the financial load before the continent’s development dreams go up in smoke.
- A panel of experts urges G20 and IMF to implement sweeping debt refinancing measures for Africa ahead of the Johannesburg summit.
- The report emphasises the need for a borrowers' club to amplify the voices of indebted nations in debt negotiations.
- Proposals include leveraging IMF special drawing rights and selling IMF gold to alleviate unsustainable debt burdens.
- With public debt in developing countries surpassing $31-trillion, urgent action is needed to prevent a debt crisis that threatens essential services.

## Content

Against the backdrop of mounting concerns about the rising levels of African debt, a panel of experts on Tuesday presented a report calling for the G20 countries and the International Monetary Fund (IMF) to adopt sweeping measures to refinance debt.

Debt sustainability is one of the key areas that South Africa has prioritised in its G20 presidency, and the report, composed by experts including former finance minister Trevor Manuel, has teeth.

“This proposal would focus on refinancing rather than rescheduling debt obligations,” said the report, released ahead of the G20 Leaders’ Summit in Johannesburg this weekend.

“Sovereign debt has once again emerged as a critical obstacle to development in Africa. Where debt is clearly unsustainable, it must not be allowed to linger and poison the prospects for development.”

The proposals include funding the initiative through the use of special drawing rights at the IMF or the sale of the IMF’s gold, which is currently in record territory, at more than $4,000 an ounce.

Indebted countries should also form a borrowers’ club to present a united front and make their voices heard.

“Its primary mandate would be to strengthen debtors’ voices in negotiations on reforms to the international financial and debt architecture,” said the report.

### What this means

Many African countries are burdened with crippling levels of debt that threaten their capacity for economic development and the provision of public services. Addressing this is key to unlocking capital for much-needed investment in productive infrastructure. This initiative moves beyond debt forgiveness, and measures like tapping IMF gold are a masterstroke.

The report also took aim at ratings agencies that assess sovereign credit risk.

“The G20 can help ensure that rating agencies’ methods are sound, their sources are fully disclosed, and their actions are subject to regulatory oversight,” said the report.

It also called for a sharper assessment to separate liquidity and solvency issues.

The time for action has clearly come as Africa is once again sitting on a ticking debt bomb.

“Debt servicing costs have reached unprecedented levels, crowding out vital spending on health, education, climate adaptation, and other development priorities. According to UNCTAD \[UN Trade and Development\] and the World Bank, public debt in developing countries surpassed $31-trillion in 2024, with debt service costs rising by over 10% in a single year,” said the report.

“Globally, more than 3.4 billion people live in countries which spend more on servicing debt than on education or healthcare.”

According to the World Bank’s latest biannual Africa’s Pulse report, “the risk of sovereign debt distress in Sub-Saharan Africa remains elevated.

“The number of countries in debt distress or at high risk of debt distress has [nearly tripled](https://openknowledge.worldbank.org/server/api/core/bitstreams/8322b452-2d9c-4708-9fa7-425245c58a7d/content\))— from eight in 2014 to 23 in 2025 — representing 49 percent of the region.”**DM**