The G20 and B20 are over, but that does not mean that the commitments made are over. The hard work starts now.
South Africans can be proud of how the country hosted the G20 meetings, but now it is time to strengthen the fundamentals to deliver on everything that was agreed upon.
Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA) says the events of the past week, 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.
“The resulting G20 Leaders’ Declaration is a powerful document that sets out a vision and set of actions that tackle several global challenges, and there is much that puts African development on a strong footing.
“I was particularly pleased to see how well the Leaders’ Declaration aligns with the recommendations put forward by the B20 before the meeting. There is a strong commitment to energy and food security for Africa, as well as industrialisation, trade and investment. Importantly, there are legacy initiatives that will aim to deliver on the commitments and intentions outlined in the declaration.”
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B20 commitment: Africa Engagement Network to support development
One of the commitments is the Africa Engagement Framework, which South Africa will support for the next six years. The finance ministers and central bank governors launched it at the G20 finance track to enable coordinated action across the world’s major economies to support Africa’s development and integration into the global financial system.
The framework will coordinate economic policies, support financial stability, tax cooperation, infrastructure financing and debt sustainability. Mavuso says 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 Agreement, 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 points out that the G20 and B20 achieved significant alignment this year. “I am pleased that, as a business, working with our counterparts across the world, we were able to table recommendations that really engaged world leaders.
“We took the spirit of cooperation between business and government that we 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.”
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Good to see B20 handover, but international credibility requires domestic delivery
She says she was also really pleased to see the B20 handover, officiated by President Cyril Ramaphosa, to our counterpart in the US, the US Chamber of Commerce and its president, Suzanne Clark.
“It was only last year in Brazil that we accepted the responsibility to host the B20. It has been a whirlwind experience, but one BLSA is proud to have delivered in partnership with Busa. It was not only an excellent showcase for South Africa but also enabled us to advance an African agenda with key economies across the globe.
“It cements a moment we can all be proud of. I look forward to working with the US Chamber to ensure a successful B20 in the year ahead.”
However, Mavuso warns, international credibility requires domestic delivery. “The positive sentiment we 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 are the rule of law and the integrity of our criminal justice system.
“The rule of law is fundamental for investor confidence, which is why BLSA prioritised supporting reforms to the criminal justice system that was so badly damaged during state capture. Last week, we hosted acting minister of police Firoz Cachalia and Business Against Crime CEO Graham Wright to discuss the progress made in combating crime and corruption.
“The engagement was encouraging, reinforcing that government understands the direct link between effective policing, prosecutorial capacity and the business environment we need to attract investment.”
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Effective, honest justice system vital for a safe business environment in SA
Mavuso emphasises that we need an effective and honest criminal justice system, from police through to prosecution, to ensure this is a safe place to do business and where our laws and agreements are enforced and respected.
“No amount of international goodwill can compensate for a breakdown in contract enforcement, property rights protection, or basic security. Investors making long-term capital allocation decisions weigh these factors heavily.”
The Madlanga commission has been examining the inner workings of the police force, and Mavuso says their meeting with Cachalia explored how business can support improvements in capacity and integrity.
“Multilateral action, such as the Financial Action Task Force (FATF), also helped with the rehabilitation of our criminal justice system, creating pressure to develop the integrity of our financial sector and ensure it cannot be misused. FATF is a product of the G20, and the Leaders’ Declaration recommitted to ensuring that FATF stays abreast of technological developments.
“FATF will be undertaking another peer-led review of South Africa starting next year. It is a constant project to improve our criminal justice system, and FATF compliance is one element that must guide us. These international standards provide both pressure and support for the domestic reforms we need.”
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G20 and B20 showed what SA can do when we execute with excellence
Mavuso says the G20 and B20 experience demonstrated what South Africa can achieve when we execute with excellence. “We brought together government, business and international partners to deliver a world-class event and advance substantive policy outcomes for Africa. Now we must apply that same focus and partnership to domestic challenges.
“Strengthening the rule of law, accelerating infrastructure delivery and maintaining fiscal discipline are not separate from our international positioning – they are the foundation that makes that positioning credible. The world has seen what we are capable of. Let’s prove we can sustain it.”
