Business Leadership SA (BLSA), an umbrella body representing almost all of SA’s biggest listed companies, and President Cyril Ramaphosa have hailed the country’s successful hosting of the G20 summit, describing the leaders’ declaration as a powerful document to take on global challenges.
It’s put African development on a strong footing, BLSA CEO Busi Mavuso said in her weekly newsletter on Monday.
“Last week’s events, including the B20 Summit and then the G20 Leaders’ Forum, showed the world what we are capable of, with smooth logistics, good infrastructure and, most importantly, a deft handling of the complex political and diplomatic processes that had to be followed,” she said.
The Business 20 (B20) is the official G20 dialogue forum with the global business community. SA, under Ramaphosa’s leadership, has been hailed for pulling off what has been described as a diplomatic victory during the G20 summit in Johannesburg at the weekend, the first to be held on African soil.
“This is the first time that the G20 has been hosted on African soil. Recognising the importance of this milestone, we have placed Africa’s growth and development at the heart of the G20’s agenda,” Ramaphosa said in his newsletter on Monday.
“The G20 matters for South Africa not only to cement our important role in international affairs, but also to support our own growth and create jobs for South Africans. We can only achieve these objectives in an environment of global stability, inclusive growth and a level playing field.” SA’s G20 presidency had been rooted in the conviction that the world needed “more solidarity, equality and sustainability”.
“While some have sought to create division and polarisation between nations, we have reinforced our shared humanity. We have fostered collaboration and goodwill. Above all, we have affirmed that our shared goals outweigh our differences. We have prioritised issues that are important for advancing more rapid and inclusive growth in our own country,” the president said.
“We reached agreements that will benefit every South African. We secured a clear commitment from the international community to address the high levels of debt which divert spending by developing economies — including our own — on infrastructure, health and education. We placed this issue firmly on the agenda to increase investment on the continent and seize the unique opportunity that Africa presents."
The G20 leaders agreed on the need for increased global investment for climate action. “This will be crucial for South Africa as we undertake a just energy transition to a low-carbon economy in a manner that protects workers, businesses and communities,” Ramaphosa said.
“As the G20, we have agreed on the need for scaled-up disaster prevention and post-disaster reconstruction to address the rising impact of extreme heat, floods, droughts and wildfires. We raised this issue because a few areas in our country, particularly the Eastern Cape and KwaZulu-Natal, frequently experience disasters.
“We have secured international agreement on a new approach to critical minerals so that they become a source of prosperity and sustainable development in the countries that produce them. This supports our own ambition to use our extensive endowment of minerals to become a leading global player, while ensuring that beneficiation takes place in South Africa and creates jobs in mining areas.”
Ramaphosa said this had been the “people’s G20″.
“It has given new prominence to engagement groups from across global society, bringing together sectors like business, labour, parliaments, scientists, think-tanks, women, young people, start-ups, civil society, mayors and the media,” he said.
“We can be proud of what SA has achieved in hosting a successful G20 Presidency and guiding countries towards agreement on complex and important issues. This has been the historic effort to which all South Africans have contributed.”
The adoption of the leaders’ declaration was viewed as a big win for Ramaphosa after Washington warned Pretoria against adopting the document without its presence.
“I was particularly pleased to see the Leaders’ Declaration aligns well with the recommendations put forward by the B20 in advance of the meeting. There is strong commitment to energy and food security for Africa, as well as industrialisation, trade and investment,” Mavuso stated.
“Importantly, there are legacy initiatives that will aim to deliver on the commitments and intentions outlined in the declaration. One is the Africa Engagement Framework, which will be supported by SA for the next six years. This was launched by the finance ministers and central bank governors in the finance track of the G20 and will enable co-ordinated action across the world’s major economies to support Africa’s development and integration into the global financial system.”
The framework will co-ordinate economic policies, support financial stability, tax co-operation, infrastructure financing and debt sustainability.
“This is a powerful opportunity to deliver on several B20 recommendations to support investment in Africa. I want to see this accelerate the development of the African Continental Free Trade Area, which promises to unlock trillions in economic activity across the continent. It must also ensure development finance grows to support infrastructure and productive capacity, with debt priced appropriately for developing economies.”
Mavuso hailed the G20 and B20 for achieving significant alignment, “and I’m pleased that as business, working with our counterparts across the world, we were able to table recommendations that have really engaged world leaders”.
“We have taken the spirit of co-operation between business and government that we’ve developed over the last few years to solve domestic challenges and brought it to the world stage. South Africa’s business leaders stepped up to guide task teams to research and develop the recommendations, while rallying the resources needed to host an exemplary B20. This is a proud legacy that the G20 can take from its South African experience.”
Mavuso noted, however, that international credibility required domestic delivery. “The positive sentiment we’ve generated through our hosting of the G20, and our credit rating upgrade will only translate into sustained investment if we strengthen the fundamentals that investors scrutinise. Chief among these is the rule of law and the integrity of our criminal justice system.”
The rule of law was fundamental to investor confidence, “which is why BLSA has prioritised supporting reforms to the criminal justice system that was so badly damaged during state capture”.
Meanwhile, Cosatu parliamentary co-ordinator Matthew Parks said the labour federation welcomed South Africa’s successful presidency of the G20.
“We are heartened by the outpouring of support and camaraderie that SA’s presidency received across the G20, not only among the developing nations from Brazil to India, but also the industrialised countries from Canada to China. This has been an affirmation of the importance of multilateralism, meaningful dialogue and political sobriety to resolving the world’s often intractable conflicts and challenges,” Parks said.
“At a time when SA and our constitutionally mandated transformation journey have been subjected to all manner of blatant falsehoods and race baiting, President Ramaphosa led with dignity. South Africa, with all of our flaws, pained history and own goals, is a remarkably resilient nation and when tested, will unite and rise to the occasion.”
Read all the latest G20 news, plus expert views on what South Africa’s leadership of this critical forum means when it comes to shaping global policies and advocating for Africa’s interests on the international stage, on our G20 page.
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