As South Africa takes the global stage for the G20 presidency, it has a rare opportunity to shape the agenda on one of Africa’s most pressing challenges — employment. The continent’s prosperity hinges on inclusive growth, yet millions of young people remain locked out of formal economic participation.
This is not only an African issue but a global one. A thriving Africa means a more balanced world economy, reduced migration pressures and stronger trade partnerships that benefit both developed and emerging markets.
With unemployment exceeding 31% — the highest among nations tracked by Bloomberg —South Africa’s economic challenges are a stark reflection of the broader struggles facing the continent.
Young people make up 60% of Africa’s population, yet the lack of employment opportunities threatens to turn a demographic dividend into a demographic disaster. South Africa’s G20 leadership is set to ensure that employment is at the forefront of discussions.
While employment challenges are often framed as an emerging market issue, developed nations are not immune. The rapid advance of artificial intelligence (AI) is set to disrupt job markets globally, making it critical for both developed and developing economies to rethink labour market policies. White-collar and blue-collar jobs alike are at risk, as automation reshapes industries at a pace that regulatory frameworks have yet to match.
For African economies, the challenge is twofold: first, to create enough jobs to absorb the growing working-age population, and second, to ensure that these jobs are future-proofed against technological disruption. South Africa, with its acute joblessness crisis, should take the lead in pushing for a global conversation on employment strategies that incorporate innovation, digital transformation and sustainable growth.
To achieve this, it may be worthwhile to combine labour and technology engagement groups in discussion instead of separating these engagements during the summit. However, this conversation is taking place against an increasingly protectionist global backdrop.
Protectionist policies — particularly those championed by Donald Trump’s administration— have heightened global economic tensions. The rise of nationalist policies in developed nations has made multilateralism more fragile, complicating efforts to create an equitable global trading system. Tariff wars, restrictive immigration policies and trade imbalances have already disadvantaged emerging economies. Africa, deeply integrated into global markets, must navigate this environment carefully.
The US administration’s protectionist stance could ultimately isolate the world’s largest economy and disrupt global trade. African nations must seize this moment to push for fairer trade terms, particularly through the African Continental Free Trade Agreement (AfCFTA). The agreement, which aims to create the world’s largest free trade area, has the potential to drive intra-African commerce, reduce dependence on external markets and boost industrialisation.
South Africa must champion a vision where trade, investment and job creation are interconnected, ensuring that the continent takes its rightful space in the global context.
With developing economies across Africa, Asia and Latin America now accounting for nearly 50% of global GDP, the time for a power rebalance is here. Africa must leverage its position to negotiate better trade deals and investment opportunities that prioritise job creation, infrastructure development and technological advancement.
South Africa, as G20 president, should push for debt restructuring and alternative funding models that support sustainable growth. Many African nations are burdened with debt denominated in hard currencies, leaving them vulnerable to external shocks and currency depreciation. Without innovative financial solutions, the continent’s employment crisis will persist, fuelling migration and strengthening nationalist sentiments in Western nations.
Africa’s economic growth must be underpinned by sustainability. Climate change is already disrupting food security, increasing the frequency of natural disasters and exacerbating economic instability. Yet, Africa contributes minimally to global carbon emissions. South Africa’s hosting of the G20 is an opportunity to place the African climate issue at centre stage as a continent disproportionately weighted by climate disruptions while being a pivotal contributor to the global green energy and green economies agenda.
For South Africa, 2025 will be a defining year in global diplomacy. The country has taken bold stances on international issues, including human rights violations and economic transformation. However, these moves come at a cost.
South Africa’s commitment to transformation, diversity, equity and inclusion may put it at odds with the Trump administration’s policies. Diplomatic relations with major economies such as China and Russia must be handled carefully, ensuring that South Africa maintains a non-aligned stance while advocating for Africa’s broader economic interests.
The G20 is not just a forum for dialogue but a platform for action. South Africa must champion a vision where trade, investment and job creation are interconnected, ensuring that the continent takes its rightful space in the global context.
• Makhoba is an economist and lead specialist: research and analytics at Liberty, the insurance and asset management arm of the Standard Bank Group.
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