South Africa’s G20
By Lerato Mpembe
South Africa’s assumption of the G20 Presidency on 1 December 2024 marks a pivotal moment for the nation to champion inclusive economic growth and strengthen multilateral cooperation on the global stage. Speaking at a G20 public lecture at Tshwane University of Technology (TUT) in Soshanguve on Friday, 16 May 2025, Deputy Minister in the Presidency Nonceba Mhlauli emphasized that the G20 platform will focus on recovering the global economy, fostering sustainable development, and showcasing South Africa as an attractive destination for investment.
This article explores the significance of South Africa’s G20 role, its economic potential, and the broader implications for citizens and the global community.
A Platform for Global Recovery
Mhlauli highlighted the G20’s evolution from a forum focused on macro-economic issues to a comprehensive platform addressing trade, climate change, health, agriculture, energy, and anti-corruption. “Since President Ramaphosa took over the Presidency of the G20 in December 2024, a lot of public discourse has already gone into what this could potentially mean for South Africa, particularly in a post-COVID-19 era where developing economies are still on a path to recovery,” she said.
The G20 was elevated to a Heads of State and Government level in 2009 following the 2007 global financial crisis, becoming the “premier forum for international economic cooperation.” Mhlauli noted that its primary focus remains “to increase multilateral cooperation for the recovery of the global economy, bring stability to the global financial system, promote long-term sustainable growth and strengthen global economic governance.”
For South Africa, hosting the G20 offers a unique opportunity to address pressing challenges like unemployment (32.9% in Q1 2025), inequality, and youth empowerment while positioning the country as a leader among developing nations. The presidency, which runs until November 2025, will see over 200 G20-related meetings across South Africa, driving economic activity and global engagement.
Economic Opportunities and Tourism Boost
South Africa’s G20 Presidency is expected to deliver a significant economic uplift, particularly in tourism, hospitality, manufacturing, and trade. “The over 200 expected G20 related meetings have already commenced in our country presenting opportunities for the country’s tourism, manufacturing, trade and other investment growth,” Mhlauli said. Cities like Pretoria, Johannesburg, Cape Town, and Durban are hosting delegates, boosting local businesses such as hotels, restaurants, and transport services.
Government Communications and Information System (GCIS) Acting Deputy Director-General Sandile Nene echoed this optimism, stating, “We are hoping that the G20 will make people invest in the country.” The influx of international visitors is projected to increase foreign spending, creating jobs in the service sector and stimulating small and medium enterprises (SMEs).
Kutlwano Mahosi, a first-year Journalism student at TUT, told government media that the G20 meetings will enhance South Africa’s economy. “As people come to our country, they will be spending their money which will play a role in job creation,” she said. Fellow student Andiswa Mchunu added, “A better “
System: economy means more jobs and better life for South Africans,” highlighting the potential for the G20 to attract investors and improve living standards.
South Africa’s G20 Priorities
Under President Cyril Ramaphosa’s leadership, South Africa is leveraging the G20 Presidency to advance inclusive and sustainable economic growth. Mhlauli outlined key priorities, including:
- Industrialisation and Employment: Promoting policies that drive job creation, particularly for the youth, who face a 46% unemployment rate (Q1 2025). Initiatives like the Youth Employment Service (YES) and skills development programs will be showcased.
- Closing the Gender Gap: Advocating for women’s economic empowerment through access to education, entrepreneurship, and leadership roles, aligning with the National Gender Policy Framework.
- Reducing Inequality: Addressing South Africa’s Ginianna index of 0.99, one of the highest globally, by promoting equitable access to opportunities and resources.
- Environmental Protection: Championing climate change mitigation and sustainable development, including renewable energy projects and biodiversity conservation, in line with the Paris Agreement.
- Artificial Intelligence (AI): Unlocking AI’s potential to drive economic and social opportunities, such as improving healthcare delivery and agricultural productivity.
Mhlauli emphasized that “through the G20 Presidency, we will foster inclusive economic growth, industrialisation and employment.” South Africa aims to demonstrate that it is “open for business,” boasting sophisticated digital infrastructure, including 5G mobile networks and high-speed broadband, which position it as a hub for business services and innovation.
Showcasing South Africa’s Potential
The G20 Presidency offers a platform to market South Africa as an attractive investment destination. With a diversified economy spanning mining, agriculture, manufacturing, and services, the country is well-placed to attract foreign direct investment (FDI). The government’s Operation Vulindlela, launched in 2020, has streamlined regulations to ease doing business, while incentives like the Special Economic Zones (SEZs) attract industries such as automotive and renewable energy.
South Africa’s tourism sector, a key economic driver, is set to benefit significantly. The country’s rich cultural heritage, natural beauty (e.g., Kruger National Park, Table Mountain), and vibrant cities are drawing G20 delegates and media attention. The Department of Tourism projects a 10% increase in international arrivals in 2025, with G20-related travel contributing R2 billion to the economy.
Global and Regional Impact
As the only African G20 member, South Africa is amplifying the continent’s voice on issues like debt relief, vaccine equity, and climate finance. The African Union’s inclusion as a permanent G20 member, announced in 2023, enhances this role. South Africa is advocating for reforms to the global financial architecture, including fairer access to development funding for low-income countries, which face $1.2 trillion in annual financing gaps (UN data, 2024).
Regionally, South Africa is promoting intra-African trade through the African Continental Free Trade Area (AfCFTA), operational since 2021. By highlighting AfCFTA’s potential to create a $3 trillion market, South Africa aims to drive industrialisation and reduce reliance on raw material exports.
Challenges and Opportunities
Hosting the G20 comes with challenges, including logistical coordination and security for high-profile events. The South African Police Service (SAPS) and Department of International Relations and Cooperation (DIRCO) are collaborating to ensure seamless operations. Public protests, common in South Africa due to socio-economic grievances, are being monitored to avoid disruptions.
However, the opportunities far outweigh the challenges. The G20 Presidency aligns with South Africa’s National Development Plan (NDP) 2030, which seeks to eliminate poverty and reduce inequality. By showcasing successful initiatives like the Expanded Public Works Programme (EPWP), which has created 8 million work opportunities since 2004, South Africa can inspire global best practices.
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