CAPE TOWN - Debt financing and the global financial architecture is in the spotlight as the G20 Finance and Central Bank Deputies meet in Cape Town.
South Africa is leading the conversation on how global lenders can provide better rates in financing developing countries, especially African countries.
The meeting happens at a time when South Africa is demanding that its government balance the budget without raising taxes.
Reserve Bank governor Lesetja Kganyago suggests that any change to Value Added Tax will shock the economy.
"How do we think about changes to an indirect tax like VAT is as follows. If there's a reduction or an increase in VAT, economists characterise that as a shock to the economy," he said.
The G20 Finance Ministers and Central Bank Governors meeting will start on Wednesday.
- eNCA’s senior reporter Aviwe Mtila was there and filed this report.