Africa stands as the world’s last great growth frontier, a trillion-dollar opportunity waiting to be unlocked.
The Africa Continental Free Trade Agreement (AfCFTA) offers the perfect vehicle to harness this potential, with the World Bank estimating it could lift 30-million people out of extreme poverty.
South Africa has long positioned itself as the gateway to this opportunity, but that status is now under threat. Our logistics crisis is eroding our competitive edge, and without urgent intervention, we risk becoming spectators rather than leaders in Africa’s economic transformation.
Logistics crisis demands immediate action
Durban’s port delays cost the economy R98m every single day in lost trade — a staggering self-inflicted wound — yet, when Transnet partnered with private operators to tackle backlogs, productivity surged by 67% within months.
The evidence is clear: public-private collaboration works. South Africa’s financial leaders must now step up. Capital allocation must shift decisively towards intra-African supply chains, particularly as Nigeria’s consumer market has already overtaken ours.
At the same time, business must demand policy certainty on AfCFTA implementation. The stakes extend beyond trade; whoever unlocks AfCFTA’s corridors will shape the rules of African commerce for decades.
Renewables present a reasonable path
South Africa’s energy paradox is as painful as it is perplexing. We boast the highest solar potential on the continent, yet we suffer the most severe electricity shortages.
The private sector has already shown the way forward. Scatec’s 540MW solar projects demonstrate investor appetite, while Sasol’s renewable energy ambitions prove even heavy industry is pivoting.
An estimated R1.2-trillion in renewable investments sits waiting, but unlocking this requires decisive action. Financial leaders must work with the GNU to resolve bottlenecks, power purchase agreements, grid access and local content rules.
The question facing South Africa’s financial leaders is simple: what legacy will they leave?
Hybrid energy-storage solutions should be prioritised, not postponed. The energy transition will not wait, but with strategic capital deployment, South Africa can still lead it.
Risks we can no longer ignore
Gauteng’s “Day Zero” water warnings are not hypothetical, they are a direct threat to economic stability. Crumbling infrastructure, crime and corruption continue to erode investor confidence.
Meanwhile, South Africa’s geopolitical balancing act must not become investment isolation, particularly as 43% of JSE-listed companies rely on Western and Brics capital. Moody’s recent warning underscores the urgency — we are out of time on reforms. Every delay increases the cost of capital for businesses.
While government and business partnerships are making progress, success requires active engagement from the financial sector, not passive observation.
A call to build rather than watch
The B20 South Africa is focused on turning ambition into action through clear public-private partnership models, governance reforms and skills development. But equally critical is reshaping Africa’s investment narrative from one of risk to one of strategic opportunity.
The continent must present itself as a cohesive, investable destination.
The question facing South Africa’s financial leaders is simple: what legacy will they leave? In 1994 this nation defied expectations. Today the challenge is different. Will we integrate Africa or remain on the sidelines? Will we drive the energy transition or stay trapped in darkness? Will we confront our risks or let them define us?
History does not remember the cautious. It rewards the bold. When future generations look back on this decade, will they see a financial sector that watched or one that built? The time to decide is now.
• Coovadia is B20 South Africa Sherpa
For opinion and analysis consideration, e-mail Opinions@timeslive.co.za
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