A G20 Fiduciary Efficiecy Cost of Capital Framework

Publication
Partner
November 10, 2025
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G20, COP30 and African Union Heads of State, Finance Ministers, Central Bank Governors and Institutional Investors: A global blueprint to modernise risk measurement, correct structural mispricing, and scale resilient, investable markets across Africa and emerging economies.

For twenty years, global capital markets have operated with a structural blind spot — one that has cost beneficiaries USD 6 trillion and slowed the world’s green industrial transition.

Global portfolios have systematically under-allocated over USD 6 trillion by under-weighting EM assets for 20 years, the largest systemic inefficiency in modern fiduciary history.

This framework directly complements the G20 Cost of Capital Roadmap by providing the

fiduciary-efficiency architecture needed to translate transparency reforms into portfolio-level capital re-weighting. South Africa's G20 Presidency can correct this through a global Fiduciary Efficiency Initiative, integrating GEMs3.0 data, IFRS standards and AU 5% investment mandates.

Doing so would restore fiduciary discipline and unlock trillions for the global green industrial transition, without new taxes or donor pledges.

Why This Matters for Ministers of Finance:

• Enhances sovereign debt sustainability without fiscal expansion.

• Reduces EM borrowing costs by 150–400 bps through actuarial transparency.

• Mobilises private capital for energy, transport and industrialisation without new taxes or donor pledges.

• Strengthens pension solvency ratios through higher long-term returns.

• Complements and operationalises the G20 Cost of Capital Roadmap.

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