By Koketso Mamabolo
The economy reigns supreme and the 2008 financial crisis triggered a response from the developed and developing world which has sought to mount collective responses to the world’s economic and financial challenges. Representing two-thirds of the world’s population, 85% of the world’s GDP, and over 75% of international trade, the G20 group of countries is a global forum which brings together decision-makers as they discuss issues, share information, draft the policies which seek to maintain order, formulate approaches to stimulate inclusive growth and avoid the kind of crisis the world witnessed almost two decades ago.
Along with the dialogue between heads of state, finance ministers and diplomats is a forum which provides a platform for a vital cog in any economy: the business community. The Business 20 (B20) has, since 2010, brought together business leaders from both non-G20 and G20 member states for an opportunity to present their views on how we can solve global economic problems.
The South African government – led by the Presidency, cabinet’s economic cluster and Dirco – is the host of this year’s G20 summit and comprehensive programmes of meetings of working groups have already begun. The private sector host of B20 South Africa is Business Unity South Africa (BUSA) which, on the domestic front, has been building a relationship with President Cyril Ramaphosa’s administration that has seen the public and private sector collaborating to address the country’s priorities, such as the energy and logistics crises, which has proved fruitful.
Together with Business Leadership South Africa (BLSA), BUSA hosted the summit’s launch this week in Cape Town, under the theme of “Inclusive Growth and Prosperity through Global Cooperation”, kicking off a year-long programme guided by task forces formed around eight socio-economic issues:
- Employment and education
- Trade and investment
- Energy mix and just transition
- Digital transformation
- Integrity and compliance
- Finance and infrastructure
- Sustainable food systems and agriculture
- Industrial transformation and innovation
“The B20 is an unprecedented opportunity to engage with the world and build our relationships while plugging into the wider G20 agenda to project South Africa’s interests to the global stage,” wrote BLSA CEO Busisiwe Mavuso in her weekly newsletter leading up to the launch. “It ensures that South Africa is part of the conversation and that our contributions are recognised.”
Co-chaired by Standard Bank Chairperson Nonkululeko Nyembezi and former Exxaro CEO Mxolisi Mgojo, the summit’s task forces will each engage with around 150 members, from more than twenty countries representing multiple sectors. From March to July, the task forces will develop policy papers and have engagements with G20 Working Groups, delivering and discussing the papers leading to the actual summit itself in November.
Two task forces of particular significance in the local context are the employment and education task force and the trade and investment task force. The former because of the high unemployment rate and the latter because of a widespread conception of investor apathy and recent developments around tariffs sparking fears of eminent trade wars.
The impact of technology and digital transformation (a task force on its own) has been felt heavily in both areas as the scale of technological innovation has led to fears of countries being left behind due to a lack of skills and investment in the digital infrastructure needed to drive the growth the world needs.
“When you talk about a good job, that conjures up in my mind formal employment,” said Sanlam CEO Paul Hanratty, highlighting the role of technology-related interventions in equipping people with the productive skills and resources needed. “On this continent and in the south, the informal economy is massive and we have to pay attention to that. We have to look at the interventions that need to take place.”
With the economy firmly in the spotlight, and socio-economic challenges taking on new dimensions as geopolitical tensions grow, as much attention will be on the policy recommendations of the B20 task forces as the outcomes of G20 Working Groups.
Sources: B20 South Africa | G20 South Africa | Daily Maverick | IOL | BLSA | Polity
