President Cyril Ramaphosa on Friday declared global inequality as one of the most pressing threats to human progress, warning that it stunts development, wastes human potential and entrenches poverty.

Addressing the Consultative Council of the Founding Committee of the International Panel on Inequality, at the Wits School of Governance, in Johannesburg, he highlighted that where inequality exists, opportunity is scarce, and where opportunity is scarce, potential is wasted, ultimately stopping progress.

“Inequality literally entrenches poverty across generations. It results in one’s starting point in life being a handicap and results in inferior schooling, nutrition, lack of networks that make upward mobility difficult or impossible. This prevents humanity’s progress,” he said.

Under the country’s G20 Presidency, Ramaphosa established the Extraordinary Committee of Independent Experts on Global Inequality, chaired by Nobel Laureate Professor Joseph Stiglitz.

The committee’s findings, delivered in late 2025, revealed a staggering "inequality emergency.”

The report found that between 2000 and 2024, the richest 1 percent of people in the world captured 41 percent of all new wealth, while the poorer half of humanity captured just 1 percent of new wealth.

Ramaphosa stated that the report provided evidence that extreme inequality is a threat to democratic freedoms, economic growth and general well-being.

He argued that humanity cannot advance while many of the world’s people are denied the fundamentals such as water, food, shelter, education, employment, and security.

“… humanity cannot advance when the talents, capabilities, creativity and energy of billions of people remain untapped and their potential remains unrealised.

“By the same measure, humanity cannot advance in a world that is deeply unjust and where so many people said.

Ramaphosa emphasised that inequality threatens the stability of societies and the sustainability of economies.

“It worsens the effects of climate disasters and steadily makes the planet less inhabitable for all people,” he added.

The International Panel on Inequality represents a concrete opportunity to confront this emergency, Ramaphosa said, noting that this is an opportunity to bring together governments and peoples from different countries to help the world understand and address inequality.

He highlighted the need for “coordinated multilateral action”.

“We encourage all world leaders and all governments to actively support the establishment of the Panel as a permanent international body,” he said.

Ramaphosa pointed out that once established, equipped and supported, the International Panel will be one of the most effective instruments the global community has to direct efforts to substantially reduce inequality.