Reserve Bank Governor Lesetja Kganyago warned at the third G20 Finance Ministers and Central Banks Governors meeting in Zimbali, KwaZulu-Natal, that while AI and rapid technological change can spur productivity and lift living standards, they also risk deepening inequality if not managed carefully.

“AI represents a significant turning point in the global economic landscape,” Kganyago said. He noted that AI has the potential to revive productivity growth and improve living standards if harnessed effectively. However, the challenge for policymakers is ensuring the shift does not destabilize fragile labor markets or deepen inequality.

Kganyago highlighted that emerging markets face high stakes. “In Africa, for example, the working-age population is expanding rapidly, and the African Development Bank estimates the continent could unlock up to $1 trillion in productivity gains by 2035. But that is contingent on closing critical gaps in data, digital infrastructure, skills, and capital access,” he said.

He urged G20 nations to deepen policy coordination, pursue structural reforms, and invest strategically to build a resilient and inclusive global recovery. “The choices we make during these times of heightened uncertainty will shape the future of global economic cooperation,” Kganyago added.