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G20 Finance Track meetings in Johannesburg reignite hope for economic progress

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G20 Finance Track meetings in Johannesburg reignite hope for economic progress

2025-01-22 20:36 Last Updated At:21:07

The G20 Finance Track meetings for 2025 began in Johannesburg in January following South Africa's assumption of the G20 presidency, reigniting people's hope for change and economic progress in the underdeveloped townships of the host city.

The Finance Track will host a series of meetings in the lead up to the G20 Summit in November and is co-chaired by the National Treasury and the South African Reserve Bank. It plays a crucial role in identifying and addressing challenges such as economic headwinds, inflation and fiscal risks. The track will also delve into the strengthening of African and Global South economies, which were weighed down by deepening poverty, climate change and other risks.

The Finance Track meetings carry the baton from Brazil - the focus on reducing poverty and inequality, sustainability and the reform of multilateral institutions.

"Trade and investment is critical. We believe finance and infrastructure is critical because of the significant infrastructural needs on the continent and the need to raise finance for it and to deepen capital markets and so on. Energy is obviously a critical one, but particularly on that transition bias towards the energy debate," said Cas Coovadia, the B20 South Africa Sherpa.

With South Africa becoming the first African country to hold the presidency of G20 and Johannesburg teeming with G20 activities this year, young entrepreneurs in some of the less developed areas of the city are looking to tap into the rising opportunities.

In the township of Soweto, many are pinning their hopes on the global grouping. Shovebike, a digitally-run last mile delivery service, is creating more jobs and helping young people start their own businesses in the G20 year.

"We don't want just to work during the G20, even after the G20, we want the laws to change and include the young and upcoming businesses. It's going to help with employment and I believe it's going to teach us as young people that we can also do something that will benefit the ones that are coming after us," said Luxolo Gozongo, a local entrepreneur.

"The number one challenge in the township is access to internet. As Shovebike, that's where we're going to be also looking into investing in the near future, because we saw that through using Shovebike infrastructure, through deliveries, we saw most or some of our customers, they lack internet," said Thabiso Legoabe, chief marketing officer of Shovebike.

Soweto will also house one of several corporate villages in South Africa's townships for various G20 sideline events throughout the year.

"We've got close to about 120, 130 meetings that will be happening there. You've got your Women 20, your Youth 20, your Urban 20. We will be participating in those meetings to make sure that those policies that are being discussed,are also where the township economy has also got the input," said Bheki Twala, founder and president of Township Economic Commission South Africa.

G20 Finance Track meetings in Johannesburg reignite hope for economic progress

G20 Finance Track meetings in Johannesburg reignite hope for economic progress

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India's central bank cuts repo rate to 6.25 pct for 1st time in nearly 5 years

2025-02-09 17:03 Last Updated At:17:37

India's central bank, the Reserve Bank of India (RBI), on Friday announced a reduction in repo rate by 25 basis points to 6.25 percent.

The repo rate is the rate at which the central bank lends money to commercial banks in the event of a shortfall of funds.

The move has been undertaken to boost the economy.

RBI Monetary Policy Committee (MPC) last reduced the repo rate in May 2020 and kept it unchanged in the last 11 policy meetings.

After assessing the current and evolving macroeconomic situation, the MPC unanimously decided to reduce the policy repo rate under the liquidity adjustment facility by 25 basis points to 6.25 percent with immediate effect, said a statement issued by the RBI.

Consequently, the standing deposit facility rate shall stand adjusted to 6.00 percent and the marginal standing facility rate and the Bank Rate to 6.50 percent. The MPC also decided to continue with the neutral monetary policy stance and remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth.

According to the RBI, these decisions are in consonance with the objective of achieving the medium-term target for consumer price index inflation of 4 percent within a band of plus and minus 2 percent, while supporting growth.

According to the National Statistical Office (NSO), India's GDP is estimated to grow at 6.4 percent for the financial year 2024-25, compared to the initially-projected 7.2 percent in October last year.

India's central bank cuts repo rate to 6.25 pct for 1st time in nearly 5 years

India's central bank cuts repo rate to 6.25 pct for 1st time in nearly 5 years

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