NONKULULEKO NYEMBEZI: SA’s G20 presidency — balancing Africa’s strength with pragmatism

Africa has long been seen as a continent of untapped potential, yet its economic growth has not kept pace with regions such as Southeast Asia. The narrative often focuses on what Africa could be, without fully reflecting on the progress that has been made, nor the work still needed to accelerate the pace of growth. 

In the 2010s Africa’s economic growth was projected to reach about 5.4% by the end of the decade, with expectations that 50% of the population would move to urban areas and intra-African trade would account for 25% of total trade. In reality, GDP growth has been slower than expected at about 3% per annum, compared with 5% in India and 8% in China. From 2024 intra-African trade remains modest at just 15%, and the continent faces an infrastructure funding gap of about $100bn per annum.

One of the factors behind Africa’s slower GDP growth per capita is the disparity between population growth and economic expansion. In many African countries population growth has outpaced economic growth, though this trend is beginning to shift. In addition, the quality of growth has been relatively low compared with Asia — capital has not been as efficiently used and income distribution has remained uneven. However, with population growth now slowing, Africa has an opportunity to focus on more inclusive and sustainable growth. 

This economic inertia has come with a human cost. While the poverty rate in Sub-Saharan Africa fell from 56% in 1990 to 40% in 2018, the number of people living in extreme poverty rose from 284-million to 433-million as population growth outstripped poverty reduction. Despite these challenges, African nations have shown remarkable resilience and innovation. They have scaled agency banking, pioneered low-cost fintech solutions, advanced sustainable farming and fostered inclusive industrialisation to broaden economic participation. These innovations have not only addressed local challenges but also underscored Africa’s global relevance in driving financial inclusion, food security and sustainable development.

As the continent takes on a more prominent role on the world stage, these successes provide a strong foundation for driving inclusive growth and accelerating economic transformation. This year, SA assumed the Business 20 (B20) presidency alongside the Group of 20 (G20) presidency, presenting an opportunity to elevate Africa’s voice in global economic discourse. African business leaders can — and must — leverage this experience to shape actionable policy recommendations that drive global co-ordination, attract investment and accelerate measurable economic progress for the continent and other frontier markets.

As leaders we have an opportunity to move beyond potential and focus on action to drive faster and more inclusive economic growth. An essential starting point is acknowledging that, in a world marked by fragmentation, neither business nor government alone can propel the comprehensive growth Africa requires. To turn the aspirations articulated during this presidency into tangible economic outcomes, business and government must work together. This is especially crucial in frontier markets, where governments — tasked with shaping policy direction — often face capacity gaps that can be addressed by leveraging the resources and expertise of the private sector. 

It is also important to acknowledge that Africa is entering this presidency from a position of strength in three critical areas, and that together we can leverage this better to reposition Africa in the economic world order. 

• The continent is indispensable for the global climate tech and energy transition, making Africa’s drive for industrialisation more strategically positioned today than ever before. With its abundant supply of minerals — producing 90% of the world’s cobalt, 60% of its manganese, 70% of its platinum and 13% of its copper — Africa is uniquely poised to meet the world’s growing demand. However, to fully capitalise on these resources we must address foundational infrastructure needs to enable local industrialisation. By driving industrialisation Africa can unlock greater economic value, create sustainable jobs, foster innovation and build resilience against global market fluctuations. This shift will allow the continent to move up the value chain, strengthen regional supply networks and position itself as a key player in the global economy. 
• Africa’s vast land mass holds immense potential to sustain life for future generations. With 60% of the world’s untapped arable land, Africa has the capacity to feed an additional 2-billion people if pragmatic and innovative agricultural practices are successfully implemented. A key enabler in unlocking the potential of this land and the continent’s resource strengths would be a focused, accelerated effort to connect physical, economic and data infrastructure through existing routes and corridors.
• The continent’s substantial demographic dividend is another core strength, particularly as the world faces demographic shifts in developed economies. The UN estimates that by 2050 more than one in four people globally will be of African origin. With about 60% of the population aged under 25, the continent is poised to add about 800-million people to the global workforce by 2050. This demographic shift, alongside Africa’s economic transition from extraction to services — now driving 56% of its economic output compared with 50% two decades ago — presents a unique opportunity. However, this potential will remain untapped without substantial investment in education, digital skills, small and medium enterprises growth and infrastructure, particularly in a world increasingly shaped by AI and digital transformation. 

To capitalise on this moment we need a clear understanding of our comparative advantage and the opportunities available to us as a continent. This will enable us to pursue concrete, well-defined policy recommendations and initiatives that not only drive progress but also leave an indelible legacy for future generations. 

Building on the work of the past three G20 and B20 presidencies, all of which were from the Global South — Indonesia, India and Brazil — B20 SA will focus on defining strategic actions, fostering collaborative partnerships and creating a robust and sustainable economic environment that affects the lives of all citizens.

This is a pivotal moment for us. The B20 presidency is not only crucial for SA; it represents an opportunity for the continent to move beyond its image of unmet potential and emerge as a beacon of realised and transformative progress. 

• Nyembezi is B20 SA co-chair.