By Lethabo Mkhize
Last week marked a historic week for South Africa as the nation not only launched the Business 20 (B20) forum, but also hosted the inaugural meeting of G20 Finance Ministers and Central Bank Governors in Cape Town. These high-profile events signal a new era in global economic governance and underscore South Africa’s commitment to a fairer, more inclusive global order.
A Dual Launch: G20 and B20 in Focus
The G20 has long been recognised as the premiere forum for international economic cooperation. Representing approximately 85% of global GDP, 75% of global trade, and two-thirds of the world’s population, the G20 brings together the world’s leading economies – including 19 countries, the European Union, and, since 2023, the African Union. In his recent speech, President Cyril Ramaphosa emphasised that the G20’s history is marked by critical interventions during global financial crises, from the 2008 meltdown to the response following the COVID-19 pandemic. The forum remains relevant due to its ability to drive coordinated action in uncertain times.
Parallel to the G20 meeting, South Africa launched the B20—a complementary platform dedicated to the business community. Unlike the G20, which is primarily composed of government leaders and policymakers, the B20 serves as the private sector’s voice. It brings together CEOs, entrepreneurs, and industry leaders to shape economic policies that drive growth, innovation, and job creation. While the G20 focuses on macroeconomic governance and crisis management, the B20 is designed to offer practical, market-driven solutions that complement public policies.
What is the B20: Goals and Distinctions
The B20 stands for Business 20 and is an integral part of the broader G20 process. Its mandate is to ensure that the perspectives of the private sector are effectively integrated into the global economic dialogue. The goals of the B20 include:
- Driving Inclusive Growth: By fostering an environment where businesses can thrive, the B20 aims to support policies that generate sustainable economic opportunities and reduce inequality.
- Encouraging Innovation and Digital Transformation: The B20 promotes the adoption of cutting-edge technologies and innovative business practices to keep pace with rapid global change.
- Enhancing Public-Private Partnerships: The forum seeks to create synergies between governments and businesses, ensuring that economic policies are not only effective but also practical and forward-thinking.
- Advancing Sustainability: With a strong focus on environmental, social, and governance (ESG) criteria, the B20 emphasises the need for responsible business practices that support long-term development.
In essence, while the G20 provides the political and economic framework for global cooperation, the B20 supplies the dynamic, actionable insights from the private sector. This dual-track approach ensures that policies are both visionary and grounded in real-world business experience.
The B20’s Role in Driving South Africa’s Economic Future
The Business 20 (B20) summit, the official G20 dialogue forum with the global business community, convened leading professionals in Cape Town to discuss how South Africa can build a future-ready economy. The discussions highlighted key challenges and opportunities, particularly in technology, industrialisation, innovation, and skills development.
Naspers South Africa CEO Phuthi Mahanyele-Dabengwa stressed the importance of digitisation and upskilling young people for the future economy. They further highlighted that Naspers’ e-commerce and digital platforms are projected to inject R91.4 billion into the South African economy by 2035, demonstrating the transformative potential of digital industries.
The Importance of STEM and Innovation for Industrialisation
Several speakers at the B20 emphasised the need for STEM (Science, Technology, Engineering, and Mathematics) education and innovation to drive industrialisation.
- Toyota CEO Andrew Kirby pointed out South Africa’s declining performance in science and mathematics education, calling for stronger investment in robotics and technology skills.
- Sanlam CEO Paul Hanratty reflected on Africa’s strong population growth, contrasting it with declining populations in countries like Japan and South Korea. He noted that while AI is often discussed, basic technological tools such as WhatsApp can be just as empowering in expanding access to opportunities.
The B20 Industrialisation and Innovation Task Force outlined key strategies, including:
- Stimulating research, development, and entrepreneurship with a focus on green technology.
- Advocating for policy reforms and financing for startups and innovators.
- Supporting women and underrepresented groups in entrepreneurship and tech.
- Strengthening collaboration between industry, government, and academia.
The B20’s Alignment with the G20’s Vision
The B20’s discussions align closely with President Ramaphosa’s vision for the G20, particularly in achieving solidarity, equality, and sustainability.
“At this time of global uncertainty and escalating tension, it is now more important than ever that the members of the G20 work together. The erosion of multilateralism presents a threat to global growth and stability,” Ramaphosa said in his speech during the G20 Finance Ministers and Central Bank Governors’ meeting.
Key Themes: Solidarity, Equality, Sustainability
At the heart of South Africa’s G20 Presidency is the theme Solidarity, Equality, Sustainability. These guiding principles were reiterated by President Ramaphosa in his speech during the Cape Town meeting: “At this time of global uncertainty and escalating tension, it is now more important than ever that the members of the G20 work together. The erosion of multilateralism presents a threat to global growth and stability.”
He stressed the need for the G20 to not only manage global economic challenges but also to create a world that is fairer and more resilient. The President’s speech outlined several critical priorities, including:
- Disaster Resilience and Response: Recognising that climate-induced disasters disproportionately impact developing economies, the administration called for innovative financing and insurance mechanisms to mitigate these effects.
- Debt Sustainability for Developing Economies: With many low- and middle-income countries grappling with rising sovereign debt, efforts are underway to address debt vulnerabilities and free up resources for essential social services.
- Mobilising Finance for a Just Energy Transition: South Africa is championing a just energy transition by advocating for greater concessional and grant funding. The goal is to limit global temperature rise while ensuring that the energy transition is equitable.
- Harnessing Critical Minerals for Inclusive Growth: Given the strategic importance of critical minerals in the energy transition, South Africa is pushing for frameworks that promote green industrialisation and ensure that resource-rich countries benefit from global demand.
These priorities are not only central to the G20 agenda but also resonate with the private sector’s focus on sustainable growth—a core objective of the B20. By aligning these initiatives, South Africa is positioning itself as a bridge between public policy and business innovation.
South Africa’s Strategic Position in Global Economic Governance
South Africa’s assumption of the G20 Presidency from 1 December 2024 until 30 November 2025 is a historic milestone, as it is the first time an African nation will preside over the forum. The presidency provides an unparalleled platform to champion Africa’s developmental agenda and highlight the role of emerging economies in addressing global challenges.
President Ramaphosa’s remarks underscored the importance of multilateral cooperation in a time of escalating geopolitical tensions and economic uncertainty. He called for a collective step-change in global efforts to promote inclusive growth, reduce inequality, and address pressing challenges such as climate change and persistent poverty. This call to action is echoed in the B20’s agenda, where the private sector is equally committed to building a resilient and sustainable global economy.
Bridging the Public-Private Divide
The launch of the B20 alongside the G20 meeting reflects South Africa’s innovative approach to global economic governance. By integrating the voices of both public policymakers and private sector leaders, the country is fostering a more inclusive dialogue. This synergy is critical for developing comprehensive solutions that can address complex global issues. In practical terms, the collaboration between the G20 and B20 will facilitate policy recommendations that are not only theoretically robust but also pragmatically implementable.
For instance, while the G20 might focus on broad fiscal and monetary policies to stabilise economies, the B20 can contribute insights on how these policies affect real businesses and what can be done to stimulate investment, innovation, and job creation. This dual approach is expected to accelerate economic recovery and promote long-term prosperity in both developed and developing nations.
A Look Ahead: Impact and Opportunity
The significance of these initiatives cannot be overstated. As South Africa prepares to host the G20 Summit in Johannesburg later this year, the country is set to leverage its presidency to advocate for global reforms that emphasise fairness, inclusivity, and sustainability. The combined momentum of the G20 and B20 events underscores a commitment to mobilise collective action that bridges global divides and unlocks new economic opportunities.
