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<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107298227-1694419120111-gettyimages-1653684092-AFP_33UQ6YZ-820x462.jpeg" alt="" class="wp-image-427345" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107298227-1694419120111-gettyimages-1653684092-AFP_33UQ6YZ-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107298227-1694419120111-gettyimages-1653684092-AFP_33UQ6YZ-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107298227-1694419120111-gettyimages-1653684092-AFP_33UQ6YZ-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107298227-1694419120111-gettyimages-1653684092-AFP_33UQ6YZ-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107298227-1694419120111-gettyimages-1653684092-AFP_33UQ6YZ.jpeg 929w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">During the G20 leaders’ summit, U.S. President Joe Biden called on G20 leaders to support the World Bank and other multilateral development banks to increase their ability to support low and middle-income countries. From left, World Bank President Ajay Banga, Brazil’s President Luiz Inacio Lula da Silva, India’s Prime Minister Narendra Modi, South Africa’s President Cyril Ramaphosa and U.S. President Joe Biden in New Delhi on Sept. 9, 2023. Evan Vucci | Afp | Getty Images</figcaption></figure>



World leaders have called for the World Bank’s expansion to boost its lending capacity — but that can’t happen without funding from the private sector, the bank said.&nbsp;



The World Bank is no longer just focused on eradicating poverty, but also on other impending global challenges — like pandemics, climate change and food insecurity, its president Ajay Banga told CNBC’s Tanvir Gill on Saturday.&nbsp;



“There’s no way there’s enough money in the multilateral development bank, or even in governments &#8230; that can drive the kinds of changes we need for this polycrisis. Getting the private sectors’ capital and ingenuity into the game is going to be very important,” he told CNBC in an exclusive interview on the sidelines of the Group of 20 nations leaders’ summit in New Delhi.



“We are digging deep to boost our lending capacity, but we are going further, creating new mechanisms that would allow us to do even more,” Banga said at the G20 leaders summit. 



“We’re working to expand concessional financing to help more low-income countries achieve their goals, while thinking creatively about how to encourage cooperation across borders and tackle shared challenges,” he added.&nbsp;



<h2 class="wp-block-heading" id="h-biden-backs-world-bank"><a></a>Biden backs World Bank</h2>



Leaders at the summit agreed that this isn’t something the World Bank can tackle alone.&nbsp;



During the summit, U.S. President Joe Biden called on G20 leaders to further support the World Bank and other multilateral development banks over the next year in order to increase the institution’s ability to support low and middle-income countries. 



Biden has asked Congress to increase the World Bank’s financing by more than $25 billion, a move that will enable the bank to further help developing countries achieve their development and economic goals. 



“This initiative will make the World Bank a stronger institution that is able to provide resources at the scale and speed needed to tackle global challenges and address the urgent needs of the poorest countries,” the White House said.&nbsp;



The World Bank was created in 1944 to help rebuilding efforts in Europe and Japan after the Second World War. It started with just 38 members but today includes most of the countries in the world.



Biden has previously said that developing countries need more funding options to reduce their dependency on China, and help them recover from the effects of Russia’s war on Ukraine. The administration asked for $3.3 billion to increase development and infrastructure finance by the World Bank.



“It is essential that we offer a credible alternative to the People’s Republic of China’s (PRC) coercive and unsustainable lending and infrastructure projects for developing countries around the world,” the White House said in August.



Apart from providing more resources to help developing countries reduce poverty, the World Bank’s expansion also aims to help these nations in their renewable energy transition.&nbsp;



“I do have the idea that if I could get a certain amount of money in the bank to put into say, renewable energy, could I get the private sector to put one-is-to-one, two-is-to-one, three-is-to-one?” Banga said.&nbsp;



He highlighted that investors are keen on investing in renewable energy in developing countries, and are confident that solar, wind and geothermal projects “can be built to make money.”&nbsp;



<h2 class="wp-block-heading"><a></a>‘Work together’</h2>



Both the World Bank and IMF have pledged to form a stronger partnership to help countries with their debt struggles, sustainability goals, and digital transition. 



In a separate interview with CNBC’s Martin Soong at the G20 summit, the IMF’s Managing Director Kristalina Georgieva said: “The world has changed. the horizon of how many different lenders there are and different conditions they provide their resources, is much, much broader that it was 10 years ago.”



“We need this conversation because if you don’t have it, we have no solutions and the debt problem is very pressing,” Georgieva said Sunday.



She added that “25% of debt of emerging markets is treading in distressed territory.”



“We now have more than half of of the low income countries either in or close to that distress.”



The IMF Chief reiterated that the World Bank and the fund must work to complement each other and promote synergies.



“The bank has very deep sectoral expertise. We don’t and we would never ever get into sectoral investments,” she explained.



“What we bring is how you can use fiscal policies to advance the transition to digital economy; how you can use monetary policy to assess the new types of risks — including from crypto from climate; and how you can use data to cover what matters to policymakers today and in the future.”



“The world needs institutions to work together,” she added, pledging that both the IMF and World Bank will work with others to “set the right example of what it means for the whole to be bigger than the sum of individual parts.”

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<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/107298055-1694246231901-gettyimages-1653681068-AFP_33UQ68C-820x418.jpeg" alt="" class="wp-image-427365" style="width:840px;height:418px" width="840" height="418"/><figcaption class="wp-element-caption">India’s Prime Minister Narendra Modi addresses the G20 Leaders’ Summit at the Bharat Mandapam in New Delhi on September 9, 2023. Ludovic Marin | Afp | Getty Images</figcaption></figure>



NEW DELHI — The African Union became the second regional grouping to be admitted to the Group of 20 leading industrialized and developing nations as a full permanent member, Indian Prime Minister Narendra Modi announced Saturday at the start of the two-day G20 leaders’ summit in Delhi.



The widely-anticipated move underscores India’s wide-ranging agenda to elevate the global multilateral forum’s focus on the Global South in its presidency of the G20 this year. The 55-member bloc of African nations joins the European Union as only the second regional organization to become a permanent member of the G20.



“India’s G-20 presidency has become a symbol of inclusion, both within the country and beyond, representing the spirit of ‘Sabka Saath’,” Modi said in&nbsp;<a href="https://www.mea.gov.in/Speeches-Statements.htm?dtl/37082/English_translation_of_Prime_Ministers_opening_remarks_at_the_G20_Summit" target="_blank" rel="noreferrer noopener">his opening remarks</a>, according to an official translation provided by India’s Ministry of External Affairs, referring to a “spirit of togetherness.”



“It was in the spirit of ‘Sabka Saath’ that India proposed permanent membership for the African Union in the G-20,” he added.



With an embrace after the announcement, Modi welcomed AU Chairperson Azali Assoumani and offered him a place at the conference table for permanent members of the G20.



The AU chair is rotated annually among the continent’s five regions. Assoumani is the president of the Comoros, an archipelago off the east coast of Africa.



“Delighted the African Union was granted full membership in the G20,” Charles Michel, president of the European Council,&nbsp;<a href="https://twitter.com/CharlesMichel/status/1700381860008984846?s=20" target="_blank" rel="noreferrer noopener">said on X</a>, the social media platform formerly known as Twitter.



“EU has been a steadfast supporter of this initiative and I am pleased to have championed it from the very beginning with Macky Sall,” he added. Sall is Senegal’s president and was the 2022 chair of the African Union.



<h2 class="wp-block-heading" id="h-weekend-agenda">Weekend agenda</h2>





The summit is an important one for Modi, whose government has turned the normally sedate rotating G20 presidency into&nbsp;<a href="https://www.cnbc.com/2023/09/05/india-geopolitics-g20.html">a branding vehicle to burnish India’s geopolitical importance</a>&nbsp;ahead of national elections next year. Many governments, investors and businesses are also&nbsp;<a href="https://www.cnbc.com/2023/09/08/india-investment-economy-g20.html">starting to look toward India</a>&nbsp;— as China slows — which the International Monetary Fund expects to be the fastest growing economy this year.



This weekend’s agenda includes expediting climate action, mitigating the impact of geopolitics on food and energy security, the provision of more loans to developing nations by multilateral institutions and restructuring the world’s debt architecture as well as an international framework for cryptocurrencies.



“This period in the 21st century is the time to give the world a new direction,” Modi said. “It is a time in which age-old challenges are demanding new solutions from us, and therefore it is with a human-centric approach that we must fulfill each of our responsibilities and move forward.”



Underscoring the G20 focus on sustainable development and developing economies in the next few years, Brazil will assume the G20 presidency in 2024, with South Africa due to take over in 2025.



Brazilian President Lula da Silva, who is among the world leaders present in Delhi this weekend, said Saturday his government will launch the Task Force for Global Mobilization against Climate Change as G20 president next year.



“We hope to count on everyone’s engagement so that the beauty of the Earth is not just a photograph seen from space,”&nbsp;<a href="https://twitter.com/LulaOficial/status/1700385177296412798" target="_blank" rel="noreferrer noopener">Lula said on X</a>.



At a time of shifting global alliances, India is hoping to persuade the Global South that&nbsp;<a href="https://www.cnbc.com/2023/09/08/modi-biden-india-us-g20.html">its deepening strategic partnership with the U.S.</a>&nbsp;offers a more viable alternative from food security to debt resolution.



Nigerian Foreign Minister Yusuf Tuggar told CNBC Friday that Africa could look after its own interests when dealing with the West, specifically regarding critical minerals. Speaking to CNBC’s Tanvir Gill on the sidelines of the leaders’ summit he said: “We’re not that naïve.”



“Part of the problem coming out of colonialism to date has been the infantilization of African countries and Africans. So we know what is good for us,” Tuggar added. “It’s not like taking a toy out of a child’s hands, we know what our interests are, we are clear about them, we are confident, we can protect ourselves, we can hold our own.”



Other world leaders present in Delhi this weekend include Canadian Prime Minister Justin Trudeau, French President Emmanuel Macron, Germany’s Chancellor Olaf Scholz, Japan Prime Minister Fumio Kishida, Saudi&nbsp;Arabia’s Crown Prince Mohammed bin Salman, Turkey’s President Recep Tayyip Erdoğan and U.S. President Joe Biden.



Russian President Vladimir Putin and Chinese President Xi Jinping are conspicuous absentees, with both G20 member states having objected to the wording referring to the war in Ukraine. Russian Foreign Minister Sergey Lavrov and China Premier Li Qiang are representing their respective countries this weekend.



The pair’s absence has sparked fears that a communique binding member states may not be issued at the end of a G20 leaders’ summit — undercutting India’s clout and diminishing his domestic messaging.



“After Covid-19, a huge crisis of lack of trust has come in the world. Conflict has deepened this trust deficit,” Modi said. “Just as we can overcome Covid, we can also overcome this crisis of mutual trust.”

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