By Thapelo Molefe
Finance Minister Enoch Godongwana says South Africa is “on leave” from the G20 this year and will return to the grouping on December 1, amid strained relations between Pretoria and Washington.
Speaking at the International Organisation of Pension Supervisors (IOPS), Financial Sector Conduct Authority (FSCA) and World Bank International Conference 2026 in Cape Town, Godongwana said South Africa had temporarily stepped away from the G20.
“Last year, on the side of the G20, by the way, we were once part of the G20. We’re just on leave this year,” Godongwana said.
“We’re going back on the 1st of December, so we just took leave this year.”
South Africa held the G20 presidency from December 2024 to November 2025 and hosted the leaders’ summit in Johannesburg.
The United States did not attend the summit and, after taking over the presidency, announced that South Africa would not participate in the 2026 G20 meetings.
Relations between Pretoria and Washington have been strained over several issues, including South Africa’s land reform policies, its foreign policy and its legal action against Israel at the International Court of Justice.
US President Donald Trump has also made claims about the treatment of white South Africans, which the South African government has rejected.
More recently, US Secretary of State Marco Rubio announced visa restrictions targeting certain South African nationals involved in policies Washington says enable uncompensated land seizures, racial discrimination or violence against ethnic minorities.
Godongwana’s comments came as he warned that geopolitical tensions and trade fragmentation were creating uncertainty for economies and financial markets.
“We’ve come through a period in which the global economy has had to absorb a succession of shocks,” he said.
He said renewed inflationary pressures and financial market volatility had complicated the global economic environment, while higher energy and food prices were placing pressure on households.
Godongwana said geopolitical tensions could affect the cost of food, transport and housing, as well as the cost of servicing debt.
He also highlighted the impact of international conflicts on South Africa’s finances.
Godongwana recalled delivering his first Budget speech in February 2022, shortly before Russia invaded Ukraine. He said the government had to introduce fuel subsidies after the conflict contributed to higher fuel prices.
He said a similar situation followed after the United States and Israel attacked Iran earlier this year.
“This year I delivered on the 25th of February. Three days later on the 28th, the USA and Israel attack Iran. My numbers go way wire. Again, I had to subsidise fuel,” he said.
Godongwana said the two episodes had cost the government about R18 billion in fuel subsidies.
“I’m highlighting the impact of these geopolitical tensions, not only on households, but on the entire system and economic system,” he said.
He said South Africa and other countries needed to account for external shocks when planning their economies and public finances.
Godongwana also highlighted the role of African savings in supporting economic development, saying about $2.4 trillion in savings on the continent was not being sufficiently used to invest in African economies.
He said regional integration, including through the African Continental Free Trade Area, could help African countries use their resources to support economic development.
Godongwana said the Southern African Development Community had a market of about 400 million people and could benefit from greater regional economic integration.
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