President Cyril Ramaphosa has highlighted the significance of South Africa's G20 Presidency and the economic priorities of the South African Government of National Unity during a special address to the 55th World Economic Forum in Davos-Klosters, Switzerland.
The President told world leaders that South Africa will focus its G20 Presidency on three themes - namely solidarity, equality and sustainable development.
He emphasised the country’s commitment to advancing a just energy transition, fostering inclusive growth and addressing global inequalities.
“As a leading forum for international economic cooperation, the G20 plays an important role in shaping and strengthening global architecture and governance on major international economic issues,” the President said.
He pointed out that the G20 is being hosted on the African continent for the first time in history.
“This is a moment of great significance for South Africa, the African continent and the world in that it was in Africa where humans developed the capacity and the impulse for cooperation.
“Cooperation has been one of the key markers of human development touching on many aspects of life, from survival and social organisation to technological and cultural progress, which is what the G20 was established for - to foster cooperation to deal with the challenges the world faces. Cooperation is the bedrock of human civilisation,” President Ramaphosa said.
He referred to former President Nelson Mandela’s speech at the WEF annual meeting 33 years ago, when Tata Madiba said: “Our interdependence, bringing us together into a common global home, across the oceans and the continents, demands that we all combine to launch a global offensive for development, prosperity and human survival.”
President Ramaphosa said South Africa's G20 Presidency is aimed at pursuing the objective of fostering solidarity, equality and sustainable development.
“It is South Africa’s firm view that these themes can best be taken forward through the collective actions of institutions like the G20 and various multilateral institutions of the world, especially the United Nations, the WTO [World Trade Organisation] and global financial institutions, which should be reformed and be more representative and responsive to the needs of the citizens of the world.
“We will seek to get the G20 to focus more on how we can enhance solidarity through collective efforts to ensure that in the pursuit of progress for all, no person and no country is left behind,” the President said.
He emphasised that the rights and freedoms of one people cannot be separated from the rights and freedoms of all peoples. The President said that this is the foundation on which solidarity is built.
He said one of the greatest impediments to growth, development and stability is the persistence of inequality within and between countries.
The pursuit of the UN Sustainable Development Goal on reducing inequality is as much of an economic imperative as it is a social imperative, President Ramaphosa said.
“As the G20, we need deliberate and coordinated efforts to focus on inclusive growth based on responsive trade and investment to grow the incomes of poor nations and the poorest in society and to ensure equal access to opportunities especially for women and young people.
“For nations to flourish, equality and prosperity must be available to everyone – regardless of gender, race, religious beliefs or economic status,” he said.
Mobilising Finance for a Just Energy Transition
Another of South Africa’s priorities for its G20 Presidency is to mobilise finance for a just energy transition.
President Ramaphosa underscored the need for enhanced climate financing, urging global financial institutions to redirect unused Special Drawing Rights to support developing economies, particularly in Africa and the Global South.
“It is simply not fair that over 60% of Special Drawing Rights are concentrated in a handful of wealthy countries. These resources should empower countries in Africa to invest in infrastructure, education, health care, and industrial development,” the President said.
He called for innovative financing mechanisms and private capital to scale sustainable development, urging global institutions to derisk and support financing for emerging markets.
Highlighting South Africa’s Just Energy Transition Partnership, the President said: “We must accelerate the transition to low-carbon economies in a manner that is just and inclusive, while recognising the damage that climate change has already caused.”
Strengthening disaster resilience
With the increasing frequency of climate-induced natural disasters, President Ramaphosa said South Africa has therefore made the strengthening of disaster resilience as one of the priorities of its G20 Presidency.
He called for special financing and insurance mechanisms to support post-disaster reconstruction, particularly in vulnerable regions.
Harnessing critical minerals for inclusive growth
President Ramaphosa said another priority is to harness critical minerals for inclusive growth and development.
“We need a G20 framework on green industrialisation and investments to ensure progress towards a grand bargain that promotes value addition to critical minerals close to the source of extraction.
“We also need the development of low-carbon manufacturing value chains which can support decarbonisation and industrial development. As mineral extraction accelerates to match the needs of the energy transition, the countries and local communities endowed with these resources must be the ones to benefit the most,” the President said.
Showcasing Africa’s promise
President Ramaphosa highlighted Africa as the next frontier of global growth, with its abundant natural resources, young population and expanding markets.
He called for G20 support for the African Continental Free Trade Area (AfCFTA) Adjustment Fund, investments in infrastructure, youth skills development, and women’s economic empowerment.
“The digitisation of the continent to enhance trade and development is a key enabler. Through its G20 Presidency, South Africa is well-positioned to advance global cooperation and build partnerships for growth and development,” he said.
Advancing global cooperation
President Ramaphosa praised South Africa’s inclusive governance under the Government of National Unity, which he credited with fostering stability and investor confidence.
“This cooperative culture and approach was taken to a higher level with the establishment of the Government of National Unity following the elections we held in May last year.
“The Government of National Unity, made up of 10 political parties, has been vital to stability and inclusive governance, and has contributed to greater interest among investors in South Africa’s economic prospects,” he said.
The President said over the last few years, the South African government has been working closely with social partners in business and in labour to address key national challenges and drive inclusive growth.
Concluding his address, President Ramaphosa extended an invitation to world leaders to attend the G20 Summit in Johannesburg later this year.
He said the seeds of human progress were sown in Africa, where the earliest forms of cooperation were forged and developed.
“As the leaders of the G20 return to Africa, we make a call that we all harness these essential capabilities that will make us take action to build a better and fairer world. We intend that the G20 in Johannesburg this year should be a forum where cooperation and collaboration amongst the leading economies in the world will be taken to a higher level.
“Acting together, we should build an inclusive, just and equal world in which all may prosper, leaving no one and no country behind. I look forward to welcoming you to the G20 in Johannesburg later this year.
“Even if you do not participate in any of the 130 G20-related meetings, I invite you to come and see South Africa for yourself, the most beautiful country in the world,” he said. – SAnews.gov.za
