South Africa will be the first first African country to lead the G20.
THIS is week President Cyril Ramaphosa will assume his new role as the incoming President of the Group of Twenty (G20) intergovernmental forum.
The G20 is made up of 19 sovereign countries, the European Union (EU), and the African Union (AU).
It was created to address major issues related to the global economy and this includes problems like international financial stability, climate change mitigation and sustainable development.
The way these countries address these issues is through annual meetings of heads of state and government leaders.
Who are the members?
The group’s membership, as of 2023, consists of 21 countries, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States. The European Union and the African Union also hold membership.
Furthermore, guest invitees include Spain, the UN, the World Bank, and the Association of Southeast Asian Nations (ASEAN).
G20 agenda?
The original G20 agenda was developed in 1999 by policymakers from the US, Canada, and Germany, and it prioritised sovereign debt sustainability and global financial stability.
This framework aimed to integrate major developing economies as equal partners, according to the G20 manifesto.
At the November 2008 summit, G20 leaders committed to contributing trillions of dollars to international financial institutions, such as the World Bank and IMF, to restore the global financial system.
As the organisation has developed it has consistently focused on a core set of priorities, including fostering global economic growth, promoting international trade, and regulating financial markets.
Why should South Africans care?
During the recent G20 Rio Leaders’ Summit in Brazil, Ramaphosa accepted South Africa’s responsibility for the G20 Presidency for 2025.
This will be the first time an African economy leads the G20 for a rotational, one-year term.
SA would, under its G20 Presidency, seek to provide strategic direction in establishing a more equitable, representative and fit-for-purpose international order, in line with the main multilateral processes under the United Nations, Vincent Magwenya, spokesperson for The Presidency said.
Paul Calvey, Oliver Wyman partner and head of South Africa, said South Africa assuming the Presidency of the G20 was a unique opportunity to ensure greater focus on the priorities of the global south, while also demonstrating the progress being made and the vast opportunities South Africa holds for foreign investors.
Calvey said South African CEOs must adopt strategies to ensure their businesses are resilient and positioned to capture future growth opportunities.
“Given South Africa’s generally neutral standing in global affairs, local CEOs might find opportunities in markets where leaders from larger geopolitical powerhouses hesitate to venture,” he said.
