In a keynote address at the World Economic Forum in Davos, President Cyril Ramaphosa outlined the country’s objectives for its upcoming G20 presidency, set to culminate in a landmark summit in Johannesburg in November.
This marks the first time a G20 summit will be hosted in Africa, offering a unique opportunity to shine a spotlight on the continent’s potential as a driver of global growth.
Tackling climate change and mobilising finance
Ramaphosa’s Tuesday address underscored the need for coordinated global action on climate change, calling on industrialised nations to honour their commitments to finance and support climate initiatives in the Global South.
He highlighted South Africa’s focus on accelerating the Just Energy Transition, emphasising the importance of mobilising quality climate finance.
He said: “We will seek agreement on increasing the quality and quantity of climate finance flows to developing economies as agreed at various UN climate summits.”
Ramaphosa also stressed the need for innovative financial mechanisms, including leveraging private capital and taxation, to fund sustainable development.
Central to his message was the reallocation of unused Special Drawing Rights (SDRs) from wealthier nations to African and other Global South countries.
“More than 60% of SDRs go to a handful of wealthy countries. These should be redirected to enable countries in Africa to invest in infrastructure, education, healthcare, and industrial development,” Ramaphosa argued.
Building disaster resilience
Ramaphosa identified disaster resilience as a priority for the G20 presidency, citing the increasing frequency of climate-induced natural disasters.
He called for the creation of financing and insurance mechanisms to assist vulnerable nations in recovering from such events.
“While developed economies can recover quickly from disasters due to their economic strength, countries in the Global South struggle with the costs of recovery and rebuilding,” Ramaphosa noted.
Green industrialisation and critical minerals
A major focus of South Africa’s agenda will be harnessing critical minerals to drive inclusive growth and green industrialisation.
Ramaphosa proposed a G20 framework to promote value addition to these resources near their source, ensuring that the benefits flow directly to local communities rather than being exported to wealthier nations.
He said: “The development of low-carbon manufacturing value chains can support decarbonisation while spurring industrial development.”
Strengthening Africa’s economic prospects
Ramaphosa positioned Africa as the “next frontier of global growth and productivity,” noting its unparalleled natural resource wealth, young population, and expanding consumer market.
He highlighted the transformative potential of the African Continental Free Trade Area (AfCFTA), which aims to bolster regional integration and inclusive growth.
South Africa will advocate for G20 support of the AfCFTA Adjustment Fund, aimed at ensuring the agreement’s benefits reach all corners of the continent.
Ramaphosa also called for consolidated G20 initiatives to focus on investment in African infrastructure, skill development, and women’s economic empowerment.
Advancing health and technology
In the health sector, Ramaphosa urged the G20 to support local production of pharmaceuticals and vaccines to address future pandemics.
He also stressed the importance of digital transformation, particularly through artificial intelligence, as a key enabler of trade and development across Africa.
South Africa as a global collaborator
Reflecting on South Africa’s legacy of inclusive dialogue and cooperation, Ramaphosa emphasised the nation’s readiness to foster global partnerships during its G20 presidency.
He pointed to the recently established government of national unity (GNU) as a testament to the country’s ability to build consensus and drive stability.
“This inclusive governance model has attracted fresh interest from investors in South Africa’s economic prospects,” Ramaphosa said, adding that the Davos forum presented an opportunity to engage directly with these investors.
A defining moment for Africa
As Africa prepares to host the G20 summit for the first time, Ramaphosa sees this as a pivotal moment to showcase the continent’s potential.
He said: “Africa continues to be an expanding market for goods and services, with infrastructure propelling growth and development.”
The Johannesburg summit will not only address pressing global challenges but also demonstrate Africa’s readiness to play a central role in shaping the future of the global economy.
With a comprehensive agenda focusing on climate action, economic resilience, and inclusive growth, South Africa’s G20 presidency aims to leave a lasting legacy for the continent and beyond.
Source: Ramaphosa sets bold agenda for South Africa’s G20 presidency | City Press
