Building Africa’s future: The time for action is now
By Dr Terence G Sibiya The UN Economic Development in Africa report, released earlier this year, considers what African economies can do to strengthen resilience to trade risks caused by interconnected shocks across political, economic, energy, technological, and climate fronts. Many global crises, including the legacy of COVID-19, the war in Ukraine, and more recently tariffs which are being negotiated between African states and the US, introduce degrees of uncertainty, and necessitate greater resilience by African economies. Reliance on foreign markets, volatile commodity exports, high debt, and weak infrastructure have increased our vulnerability to economic shocks. As Reserve Bank Governor Lesetja Kganyago stated in an interview with Bloomberg earlier this year, the global economy faces economic fragmentation, and this raises the level of uncertainty. Strengthening our resilience is necessary to create a buffer against uncertain headwinds. While these are certainly challenges, they can also present an opportunity for Africa to build self-sufficiency and economic stability. The African Continental Free Trade Agreement (AfCFTA) is certainly one of the mechanisms we have to achieve this, with its potential estimated at $3.4-trillion, according to UN Trade and Development. AfCFTA is designed to unlock Africa’s economic strength from within, reducing dependency on external markets and enhancing regional trade networks. As things stand, intra-African trade accounts for just 16% of our total trade on the continent. Over 50% of the continent’s imports and exports are tied to just five economies, all outside of Africa. Meanwhile, only 16 of 54 African nations source more than 0.5% of intermediate goods regionally, which is a missed opportunity for value-added trade and manufacturing on the continent. Strengthening and diversifying Africa’s trade networks is key to building resilience, but infrastructure gaps, especially in transport and electricity, and non-tariff barriers, all pose hindrances to regional supply chains. Poor telecommunications connectivity also stands as an obstacle to trade growth. For example, road transport accounts for about 29% of the price of goods traded within Africa, compared to just 7% for those traded outside the continent. Without significant investment in infrastructure, trade liberalisation alone will not be enough to drive economic transformation. With these infrastructure backlogs and fiscal constraints in the public sector, attracting private sector capital has become essential to unlocking infrastructure expansion and improving cross-border connectivity, which in turn will drive economic growth and boost revenue for African nations. Governments alone cannot bridge this gap, which is why public-private partnerships (PPPs) are crucial in financing infrastructure and trade-related projects. Blended finance models (DFIs + commercial banks) will be instrumental in financing this transformation. The African Development Bank (AfDB) estimates that Africa requires between $130-billion and $170-billion annually for infrastructure, but there remains a $100-billion funding gap. The private sector must step up to help bridge this gap by leveraging its capital and expertise to fast-track critical projects. The leveraging of solid blended finance models will also be critical in the execution of necessary projects. Accelerating economic integration requires AfCFTA member states to collaborate with the private sector to unlock business opportunities and tackle trade and investment barriers. While the private sector stands ready to invest in infrastructure, logistics, and renewable energy, governments will need to implement reforms that encourage this private sector investment and financing. In particular, regulatory frameworks must be harmonised across countries to create a stable and predictable business environment that fosters investor confidence. As the African Union (AU) states in its Agenda 2063, success requires political leadership, vision, and commitment as well as the capacity to implement change. As the Group Managing Executive for Nedbank Africa Regions, I recognise that bridging the gap between policy ambition and real-world execution requires financial institutions to lead from the front in all our markets. Our commitment goes beyond financing. We actively support cross-border trade, investment facilitation, and financial inclusion, having sustainable financing at the core of our business and strategy. Our current footprint in Africa includes operations in Eswatini, Lesotho, Mozambique, Namibia and Zimbabwe as well as representative offices in Kenya and Ghana, with plans to expand our presence over time. Nedbank offers banking and related services across NAR for retail clients, small and medium enterprises, larger businesses and corporates, as well as institutions. We offer a full range of banking services, including transactional, lending, deposit-taking, card, bancassurance and selected wealth management offerings. These place us at the forefront of promoting sustainable economic growth in Africa. Africa’s economic trajectory is increasingly influenced by global trade and policy frameworks. South Africa’s G20 Presidency, under the theme of “Solidarity, Equality, Sustainability,” presents an opportunity to ensure that Africa’s economic priorities are not just heard but acted upon on the global stage. President Cyril Ramaphosa has underscored the urgent need for climate-resilient funding, responsible debt relief, and the sustainable development of mineral resources. These are not abstract policy considerations. They have real and immediate implications for businesses, from capital flows to infrastructure investment and global competitiveness. This Africa Month, we declare that the time for planning is over – the time for action is now. We must make the most of the opportunities that the AfCFTA presents. AfCFTA’s success will not be measured by rhetoric but by the tangible progress we make in building a truly integrated, economically empowered Africa. Let us move beyond ambition and into execution because Africa’s future will not build itself. We must build it together. Terence G Sibiya is Nedbank’s Group Managing Executive: Nedbank Africa Regions
Putting SA Inc on the map: Good governance and the impact on investor sentiment
By Professor Parmi Natesan, CEO of the Institute of Directors in South Africa (IoDSA) All eyes will be on South Africa when Johannesburg hosts the G20 Summit in November 2025, and along with it the B20. This influential business forum brings together business leaders from the Group of Twenty countries to assist heads of state in tackling global economic challenges. President Cyril Ramaphosa wants to use this global event to promote local business opportunities and attract foreign direct investment while also strengthening the position of Africa and the Global South – in short, putting SA Inc on the world map. The B20 campaign kicks off in February 2025, continuing the Global South rotating presidency from its predecessors Brazil, India and Indonesia, before being handed over to the United States in 2026. For the first time, the presidency is held by an African nation, which makes it all the more crucial to prove to investors that South Africa is a trustworthy partner in shaping the new world economic order. Fortunately, SA Inc’s preparations for the B20 come at a time when investor confidence is tentatively improving. In the first quarter after the formation of the Government of National Unity (GNU), the RMB/BER Business Confidence Index rose by three points to 38 in Q3 2024, which is the highest since Q4 2022. Now is the time for the public and private sectors to commit to strong governance – ensuring transparency, reducing operational risks, and promoting ethical conduct – to transform short-term improvements in investor confidence into long-term economic growth. Good governance is not an isolated compliance matter but a foundational element which fosters trust, resilience, and credibility in business and governments. It will take time and concerted effort to restore investor confidence after the Zondo Commission’s findings exposed the extent of governance failures and the consequences of unchecked corruption. South Africa still ranks a disappointing 41 out of 180 countries in Transparency International’s 2023 Corruption Perceptions Index. This is our lowest ever ranking, well below the global average, and again it is linked to governance – more precisely governance failures. “Corruption has eroded trust in both public and private institutions, deterring investment and stifling growth,” according to Transparency International. In 2024, the global non-government organisation called on the G20 leaders to prioritise anti-corruption measures to achieve their sustainable development goals, as it warns that corruption drains critical resources, impedes responses to health crises, and exacerbates poverty and inequality. Instead of reaffirming their resolve to fight corruption year after year, they must now bring their anti-corruption work out of its current silo and elevate it to the core of the G20 (and B20) summit. Transparency International’s arguments underline the IoDSA’s mission to develop and advance good governance as the basic foundation for SA Inc. South Africans know only too well that corruption can destroy the fabric of society, because government and corporate failures have made people cynical about the political will of our leadership to truly bring malefactors to book. Corruption is the opposite of good corporate governance (i.e. ethical and effective leadership). Curbing corruption is therefore a prerequisite for strengthening investor confidence and attracting FDI. It’s important to understand that corruption is not the same as poor corporate governance: despite being interconnected, they differ fundamentally. Corruption opposes the ethical principles that the King IV Report on Corporate Governance (King IV) advocates; it typically involves private individuals or public officials who act unethically and often illegally for their personal gain. Poor governance is not necessarily intentional as it is frequently a result of negligence, incompetence, or apathy, but similarly opposes King IV. When this manifests itself, for example as a lack of accountability and transparency in governance structures, it can lead to operational inefficiencies, financial instability, and declining economic prospects. These risks can deter investors, who are naturally drawn to environments where governance provides a robust foundation for managing risks and upholding ethical standards. Therefore, good governance that prioritises ethics and accountability, as outlined in King IV, will create a culture that inherently opposes corruption. Stronger governance standards are paramount for curbing corruption, enhancing investor trust, and positioning South Africa as a credible global business destination. But how can good governance be restored? Crucially, South Africa already has established some strong governance frameworks, notably King IV and the Companies Act, which are both recognised for advocating principles of transparency, ethical leadership, and sustainable practices. However, even the best governance codes rely on effective application to be impactful. Without consistent implementation, these structures lose their potential to uphold accountability and trust in both the private and public sectors. In the private sector, enhanced accountability mechanisms are needed, particularly around enforcing consequences for governance failures. Despite the availability of legal frameworks, there have been relatively few court findings of director delinquency, which undermines the culture of accountability in governance. Lack of oversight and accountability can harm investor relations and damage company reputations. In the public sector, a key area for improvement is ensuring that board members are appointed based on competence and moral compass, rather than political considerations. Such appointments would create an environment focused on performance and accountability, which would reduce the risks of mismanagement while fostering greater public trust. This is particularly important to improve the governance of embattled state-owned-enterprises. At the local government level, the focus needs to be on the alarming number of municipalities that are struggling with governance. According to the Auditor-General of South Africa Municipal Audit Report for 2022/23, only 34 of 257 municipalities (13%) achieved clean audits, with 20 municipalities deemed “critically dysfunctional”. Implementing stronger governance practices such as accountability measures and skills development, would improve service delivery and rebuild community trust. Further encouragement comes in the form of South Africa’s robust regulatory environment, forward-thinking governance codes, and commitment to addressing governance challenges, which make us a resilient and appealing market for investment. With the G20 summit in Johannesburg, South Africa has an opportunity to reinforce its commitment to world-class governance standards and a transparent, sustainable business