In our latest episode of the No Ordinary Wednesday podcast, CEO of Investec SA Cumesh Moodliar and Business Unity South Africa CEO Cas Coovadia explore how South Africa’s G20 presidency can boost investor confidence and unlock opportunities for Africa. Discover how SA is positioning itself as a gateway to growth and innovation on the global stage.
Watch Investec hosts the first G20 South Africa meeting
As Johannesburg bustles with the arrival of global delegates and the hum of diplomatic activity, South Africa stands on the cusp of a significant opportunity. This week marks the nation's debut as the G20 president for 2025, with the Sherpas and Finance & Central Banks Deputies’ meetings in Sandton.
The G20 presidency brings with it the chance to shape global economic policies and to showcase the country's potential on the world stage.
The G20, comprising 19 countries and the European Union, represents a formidable force in the global economy, accounting for about 85% of global GDP, over 75% of global trade, and two-thirds of the world's population.
As South Africa steps into the influential role of assuming the presidency for the next year, the focus is on leveraging this position to foster investor confidence and drive economic growth.
With the world watching, this presidency represents more than just a diplomatic responsibility for the country, it is a chance to reshape the narrative around South Africa's potential and the broader priorities of the Global South.
From economic inequality and infrastructure development to renewable energy and financial inclusion, the stakes are high, but so are the opportunities.
On the latest edition of the No Ordinary Wednesday podcast, Investec South Africa CEO Cumesh Moodliar and Business Unity South Africa (BUSA) CEO Cas Coovadia offered key insights into how South Africa can use this platform to drive meaningful change.
Unlocking growth opportunities
With no loadshedding for over 250 days and an expected influx of 6,000 megawatts from privately procured clean energy in the next two years, the country is poised for an economic upswing.
Business and consumer confidence are at a five-year high, and S&P has revised South Africa's outlook from stable to positive. The IMF has also raised its 2024 GDP growth forecast for South Africa from 0.9% to 1.1%.
Moodliar emphasises the need to address structural constraints to unlock economic growth, which he believes could be upwards of 2.5% to 3% in the next five year period.
Talking to the goals of the G20 2025, Moodliar says: “Promoting inclusive economic growth has to be a key foundation during this period and strengthening regional cooperation. Similarly, looking at Sustainable Development Goals and at initiatives like the promotion of renewable energy, the impact of climate change, and then more broadly, how we look at environmental sustainability while still driving economic growth”.
Role of business in G20
Cas Coovadia, BUSA CEO and Sherpa of the B20, underscores the role of the private sector during South Africa’s presidency.
Coovadia stressed the importance of actionable outcomes from the B20 task forces, ensuring that recommendations are not just theoretical but lead to tangible results.
“At the end of the B20 hosting, so towards August or September, before we hand over to the US in December, and before the B20 and G20 summits in November, we will hand over recommendations to our president for inclusion in the debates by the G20 on the policy environment,” says Coovadia.
The B20's priorities include energy, trade and investment, the digital economy, agriculture and food security, industrial innovation, and business ethics. Thus, according to Coovadia, continuity and collaboration is important. This has led to the formation of a Troika with Brazil and the US to ensure a seamless handover and sustained focus on the priorities of the global South.
“We want to identify three or four actionable issues that governments must implement, or that businesses must actually collaborate on, identify who should be doing that, and try to track it into the next B20.
“If it's a multiyear objective, we must track it over a couple of years, so that we can actually demonstrate that the B20 does deliver and show businesses that it's not just a talk shop,” says Coovadia.
Tackling global macroeconomic challenges
On the global stage, macroeconomic stability, debt sustainability, and climate financing are expected to dominate discussions of the G20.
Moodliar notes the importance of addressing geopolitical tensions and market volatility, while also focusing on sustainable financing and climate adaptation.
“What we're seeing is geopolitical tensions being heightened globally, which has led at times to market volatility. And those are the issues that have to be looked at together with issues around debt sustainability, addressing the growing debt burdens for emerging market countries, exploring debt restructuring mechanisms and enhancing access to sustainable financing”.
“Similarly, climate financing, mobilising funds for climate adaptation and mitigation in developing markets, particularly if we look at the continent as a whole,” says Moodliar.
These factors also weigh heavily on the economic growth of nations, sparking the call for a multidimensional measurement approach to economic growth at this year’s World Economic Forum meetings, one that considers social and sustainability outcomes alongside traditional metrics like GDP.
“GDP focuses solely on economic output and sometimes overlooks critical factors like income inequality, environmental sustainability, and social well-being.
“Considering South Africa and many of the other countries on the continent, these omissions can sometimes misrepresent progress and sideline important priorities like reducing poverty or improving health and education. So, we have to have metrics that also emphasise the quality of the growth,” says Moodliar.
For more G20 insights, listen to the podcast.
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