Amidst a fragmented geopolitical landscape, the President and CEO of the World Economic Forum, Børge Brende, has expressed support for South Africa’s Group 20 (G20) Presidency.
“In such a polarised, fragmented world as [the] backdrop of this G20 leadership, I think South Africa is especially well positioned to handle this very complicated geopolitical situation,” Brende said on Tuesday.
Brende was addressing Business 20 (B20) -- the official dialogue forum for domestic and international business communities.
In his address, he stated that South Africa has extensive experience in managing competition and its history.
“It’s not an easy G20 to take on but that’s a reality with the geopolitical backdrop that [it] is happening against,” Brende said.
He said the current geopolitical situation is a priority for everyone, making the global business voice more crucial than ever.
“The last weeks have shown us we have to fasten our seat belts and even getting people that don’t agree [with us] in the same room is not almost an achievement. I saw that in Davos this year when people don’t agree [with you] they don’t want to even discuss [matters]. But to break impasses at least, you must start with the dialogue and sit in the same room and say, ‘This is important to me’.
“Sherpas can then try to find some solutions because the solutions are so incredibly important…,” he said.
With South Africa set to host the G20 Leaders’ Summit later this year, Cape Town hosted the two-day B20, which began on Monday.
Western Cape Premier Alan Winde previously said that the province and Cape Town look forward to welcoming the world once again.
READ | Cape Town to host B20 meeting
The gathering focused on the theme “Inclusive Growth and Prosperity through Global Participation.”
Brende said the private sector has a key role to play in mobilising investment, driving innovation, and finding solutions to shared challenges.
“That means that if you want to get anything done, you also must work with the business sector. That’s the only way to also get investments and fresh money,” he explained.
He described Africa, with its fast-growing economies and young workforce, as poised to shape the future.
The African Continental Free Trade Area (AfCFTA) alone has the potential to unlock $450 billion in economic gains over the next decade.
The World Economic Forum, he said, has a long-fostered collaboration between business and government, and is committed to supporting this effort through initiatives such as the First Movers Coalition that pushes for green technologies.
“Now is the time for the B20 and G20 to work together to accelerate sustainable growth, strengthen global trade, and ensure that economic progress benefits all.
“South Africa’s long-standing commitment to cooperation serves as a powerful example of what is possible when we find common ground.”
Brende also touched on the key challenges including climate change, cybercrime, and the need for global consensus on issues like carbon dioxide (CO2) emissions and cybersecurity.
Despite the geopolitical tensions, Brende stated that the global economy is expected to grow by over 3% this year.
“Trade is expected to grow by 3%, however, the growth we are seeing in trade is not coming from traditional manufacturing goods. Digital trade and services are projecting significant growth. The biggest game changers over the next few years will be new technologies.”
He said the technological advancements, particularly in artificial intelligence (AI) and machine learning, could boost productivity by 10% in a decade. – SAnews.gov.za
