South Africa and the G20: Opportunities for Africa

South Africa and the G20: Opportunities for Africa

South Africa and the G20: Opportunities for Africa 800 800 Frontline Africa Advisory


Introduction

Much has been said about South Africa taking over the Presidency of the Group of 20 leading economies in November 2024. With the Foreign Ministers Meeting taking place in South Africa this week, South Africa and its international partners will be keen to reaffirm the relevance of South Africa’s Presidency in light of the US’s hard stance against the themes chosen for this year.

South Africa has themed its Presidency as “Solidarity, Equality and Sustainability”. In keeping with this theme, South Africa’s Presidency has a strong focus on Africa’s developmental challenges and inclusion as an equal member of the global system of nations.


About the G20

The G20, or Group of Twenty, is an international forum comprising 19 countries and the European Union, representing the world’s largest economies. Established in 1998, it serves as a platform for discussions on global economic and financial issues, accounting for approximately 85% of global GDP, 75% of international trade, and two-thirds of the world’s population. The G20 aims to foster international economic cooperation and promote sustainable development, addressing pressing global challenges such as climate change, financial stability, inequality, and trade. Member countries collaborate to formulate policies that enhance global economic stability and foster inclusive growth.


South Africa in Global Affairs

As one of Africa’s leading economies, South Africa plays a pivotal role in shaping the continent’s engagement with global platforms. While the country’s influence seems to have waned since 2009, owing to political instability within the ruling party, an underperforming economy and vast shifts in global politics, it remains a powerful voice for change in the global arena. Key issues for advocacy are Africa’s equitable inclusion in global affairs, a fair-trading system, fair access to international funding, equity in global affairs, and reform of the UN system.


Elevating African Issues on the Global Stage

South Africa’s presence in the G20 allows it to highlight critical African issues, such as poverty alleviation, infrastructure development, and climate change. For its Presidency, the country has adopted three areas of focus, namely.

– Inclusive Economic Growth, Industrialisation, Employment and Reduced Inequality
– Food Security; and
– Artificial Intelligence, Data Governance and Innovation for Sustainable Development.

All three areas are critical for Africa and the developing world in general. These are broadly aligned to the agenda of the three preceding Presidencies being Brazil, India and Indonesia.
South Africa has also launched a review of the G20 since its founding. This review will reflect the body’s key achievements and the way forward.


Inclusive Economic Growth, Industrialisation, Employment and Reduced Inequality

This theme has great resonance for South Africa and the broader African continent. In the domestic environment, these themes have shaped South Africa’s development, with unemployment and inequality remaining stubborn, 30 years into democracy. While some of the driving factors behind this are domestic, some are global in nature.

As a platform for dialogue, the G20 offers a space for forging economic consensus on how the global system can better support the developing world to achieve its developmental aspirations.
Initiatives like the African Continental Free Trade Area (AfCFTA), the largest free trade area in the world, aimed at boosting intra-African trade and economic integration, can realise accrued benefits from G20’s elevated focus on the continent. AfCFTA’s Industrialisation Strategy, which aims to boost regional value chains and local production capacity, could be particularly leveraged, as would the continent’s Manufacturing and Special Economic Zones and the African Union’s Agenda 2063.

Gender-Inclusive programs like the African Women’s Development Fund (AWDF) that support female entrepreneurs, as well as rural development initiatives, underpin the realisation of inclusive economic growth, industrialisation, employment and reduced inequality.


Food Security

Food security remains an important consideration for the developing world. According to the Food and Agriculture Organisation’s 2024 State of Food Security and Nutrition Report, “hunger, food insecurity and malnutrition continue to increase around the world affecting millions of people especially in rural areas, where extreme poverty and food insecurity remain deeply entrenched.” This is driven largely by instability, climate change, access to finance, and inequality.

Food security is a critical issue in many African nations. Programs such as the Comprehensive Africa Agriculture Development Programme (CAADP), under the auspices of the New Partnership for Africa’s Development (NEPAD), remain critical in increasing agricultural productivity and value chain development.

By sharing best practices and collaborating with other G20 members, South Africa can lead discussions on sustainable agricultural development that can significantly improve food access and nutrition across the continent.
This builds on the FAO’s High Level Task Force on Global Food and Nutrition Security, as well as Brazil’s Global Alliance Against Hunger and Poverty. As a country facing its own challenges with growing hunger and malnutrition, it is understandable why South Africa would want this elevated to the level of the G20.


Climate Change/Just Energy Transition

Closely to linked to food insecurity is the issue of energy transition and decarbonisation. The African Climate Change Strategy (2022–2032) provides a framework for climate adaptation, resilience, and carbon neutrality. Transitioning from carbon heavy economies has become de riguer in international parlance. As a leading light for Just Energy Transition, South Africa will be keen to ensure that decarbonisation does not adversely affect African countries and the developing world. Unguided, this has potential to lead to deindustrialisation and further marginalisation of the developing world.


Artificial Intelligence, Data Governance and Innovation For Sustainable Development

The digital revolution is reshaping economies and societies worldwide. South Africa’s engagement in the G20 provides an opportunity to champion digital transformation initiatives that benefit Africa, including the implementation of the Continental Artificial Intelligence Strategy adopted by the 45th AU Summit in July last year. By advocating for policies that promote digital literacy, connectivity, and innovation, South Africa can help drive technological advancement across the continent, enabling African nations to compete in the global digital economy.

AI and data governance are a hugely important area for discussion for the leading nations of the world. In the context of Solidarity, Equality, and Sustainability, it is even more important as lack of governance and uncontrolled advances in AI and lack of global minimum standards on data governance are likely to leave the developing world behind, thus widening developmental gaps.


Geopolitics, Trump and the G20

The unexpected onslaught by President Donald Trump against South Africa has taken observers by surprise. That it happened so early in his term President Trump is perhaps a sign of things to come over the next four years. The announcement by the new Secretary of State, Marco Rubio, that he would not attend the Foreign Ministers meeting in South Africa on 20 February should not have as a surprise to anybody. Clearly, Trump 2.0 is hellbent on undermining institutions of global governance. He has already indicated his intention to pull the US out of the World Health Organisation and the Paris Climate Agreement, and imposed sanctions on the International Criminal Court.

How the G20 Troika navigates boycotts by the next President of the body will be a true test for both South Africa and Brazil. After all, achievements of Indonesia, India and Brazil during their preceding Presidencies rest on some good faith commitment by succeeding Presidencies that their work will not be undone. Only the foolish would assume the US under Trump will carry forward any agreements designed to achieve equity and fairness in global affairs. After all, the administration seems more driven by the whims of its leaders than any coherent and progressive vision for a shared future.


Conclusion

As South Africa leads the G20 in 2025, it has a unique opportunity to champion the interests of the African continent and the developing South. By highlighting key issues, fostering economic partnerships, promoting sustainable development, and advocating for trade reforms, South Africa can help pave the way for a more prosperous, equitable and shared future. Through leveraging its position, South Africa can advocate for policies and initiatives that promote economic growth, climate action, multilateralism, digital transformation, and food security.

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