Zimbali: Artificial Intelligence (AI) and rapid technological advancements are changing the global economic landscape, but policymakers must ensure that this shift does not deepen inequality or leave developing nations behind. This is according to Reserve Bank Governor Lesetja Kganyago, who addressed the third G20 Finance Ministers and Central Banks Governors meeting held in Zimbali, Kwa-Zulu Natal.
According to South African Government News Agency, Governor Kganyago stated that AI represents a significant turning point in the global economic landscape. He highlighted insights from a recent side event on AI’s implications for productivity and labor markets, noting AI’s potential to revive productivity growth and improve living standards if harnessed effectively. However, he cautioned that policymakers face the dual challenge of embracing innovation while preventing it from exacerbating inequality or destabilizing fragile labor markets. Achieving the right balance between innovation and inclusion is a critical policy imperative.
Governor Kganyago noted that the stakes are particularly high for emerging markets and developing economies. He pointed out that Africa’s rapidly expanding working-age population could unlock up to $1 trillion in productivity gains by 2035, as estimated by the African Development Bank. This potential, however, hinges on closing critical gaps in data, digital infrastructure, skills, and capital access.
Kganyago emphasized the responsibility of G20 countries to shape a global recovery that is resilient, inclusive, and forward-looking. He called for deepened policy coordination, structural reforms, and investments to help economies adapt and thrive in the evolving global landscape. Additionally, he stressed the importance of ensuring that the benefits of technological progress are widely shared and benefit all populations.
The Governor concluded by highlighting the significance of the choices made during these uncertain times, as they will shape the future of global economic cooperation.