South Africa plans to put alternative energy, finance high on G20 agenda

When SA assumes the presidency of the Global Group of 20 (G20) in December, the country plans to financing solutions for economic development and the “just energy transition”, especially in the Global South.

Briefing reporters on last week’s cabinet meeting, minister in the Presidency Khumbudzo Ntshavheni said on Wednesday the cabinet discussed the G20 Summit preparations, which are at an advanced stage, to take up this important international role.

“The development of the Global South and aspirations of Africa are at the top of South Africa’s agenda for its G20 presidency. This is the first time that the G20 Summit will be hosted in Africa.

“During our tenure, South Africa will also prioritise global financing solutions, the governance structure for economic and political matters, food security, the energy crisis and climate change,” she said.

SA’s G20 presidency will include meetings of world leaders during 2025, which will culminate in the G20 Summit in November next year. The event comes as the Global South grapples with the climate emergency, along with the need to achieve enough growth levels to meet social needs.

Ntshavheni said SA will use its G20 presidency to advance its national interest, as outlined in the National Development Plan vision 2030, of driving sustainable economic growth.

The country will participate in the upcoming G20 Summit on November 18 and 19, in Rio de Janeiro, Brazil, with the 19 member countries. Brazil the presidency of the G20 until December 1, after which it will shift to SA.

Paul Calvey, head and partner for financial services at Oliver Wyman SA, said SA was taking on the G20 presidency at a unique moment, when the government of national unity was being welcomed with cautious optimism globally.

“This is an opportunity South Africa must grasp with both hands. It can ensure greater focus on the priorities of the country and the broader continent. It is a chance to elevate the core policies South Africa wants to drive and to ensure increased attention on the developing economies of the world,” he said.

The agenda would include greater financing for the just energy transition to education, youth employment and social equality, said Calvey.

“With the world’s eyes on South Africa, it can demonstrate the progress being made and the vast opportunities the country holds for foreign investors.”

He said this was an opportunity South Africa must not waste, and "putting the right resources, expertise, and support behind it will be key”.

Minister of international relations and co-operation Ronald Lamola said the G20 multilateral platform was a critical one for South Africa as it constituted nearly 60% of the global population, 80% of global GDP, and 75% of global exports.

“The G20 is a preeminent forum on whose stage, global economic co-operation is facilitated. Thus supporting emerging and developing economies to achieve sustainable development is vital for global stability and security, reducing resource pressures, population movements, and the risk of conflict. This is especially important for the African continent,” he said.

He said at the G20 Summit, heads of state and governments will approve the agreements negotiated throughout the year and point out ways to deal with global challenges.

“In terms of promoting the economic interests of the Global South, South Africa considers the G20 to be an important vehicle for advancing the aspirations of developing countries, and Africa’s development priorities in particular.”

He said the G20 Leaders' Summit in Brazil next week will include the leaders of the 19 member countries, plus the AU and the EU.

Business Times