Specialists say G20 summit boosted SA’s global status and investment outlook, with major economic spinoffs likely only years down the line.
The benefits of the G20 summit will take time to be realised, but some short-term benefits are being seen, such as improvements to the infrastructure and increased tourism and accompanying accommodation bookings.
This is the view of experts, who say the G20 has put the spotlight on South Africa and helped to increase the country’s profile as an international player and a potentially good investment destination.
The most significant spinoffs would be the investments that follow five to 30 years after the G20 visits.
Experts say South Africa’s G20 hosting boosts global standing
The economic impact of G20 would be realised in five to 30 years from now, because the economy cannot change overnight, independent political analyst Sandile Swana said.
The G20 meeting has helped to give clarity on several issues, including the framework and standards of political behaviour and potential international investments.
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This is further reinforced by the fact that South Africa is recognised as a global influencer in both Africa and the global south, particularly in its commitment to the importance of sustainable energy and reducing greenhouse gases.
In the light of South Africa hosting the G20 and the withdrawal of US aid from the country, the European Union pledged to come to the rescue with investments in green energy projects, Swana said.
In terms of technology, China is a leading contributor to SA’s technological advancements.
SA pays excessive interest on sovereign debt
He said the hurdle to growth is the fact that SA pays excessive interest on sovereign debt.
Borrowing came at a high cost, which impacted the country’s economic growth.
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“The debt that South Africa and the rest of sub-Saharan Africa have undermines development. South Africa had been playing a leading role in calling for a change in the architecture of international financing.
“By and large, Africa and the rest of the global south should be able to borrow under the same terms as the Western powers, which are favoured by the international financing system.
“Had we done what was promised in the National Development Plan to diversify our export markets, not to focus on the US, we would have fared much better,” Swana said.
G20 will expose SA to the outside world
According to political economy analyst Daniel Silke, the G20 is a show-piece that will expose SA to the outside world.
It gives the country status, prestige and elevates President Cyril Ramaphosa on the global stage.
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“It’s about South Africa creating its own environment for investors, both domestic and international.
“It has to adjust policies to be more competitive, deregulate the economy and remove corruption, graft and rent-seeking.”
Dirk Kotzé, a political scientist, said the summit elevated SA to the arena of international decision-making alongside the largest world economies.
“It also gives South Africa an opportunity to bring issues like inequality and poverty to the world stage via the G20,” Kotzé said.
