G20 success showcased South Africa’s potential — now strengthen the fundamentals - BLSA

South Africa should be proud of its hosting of the G20 meetings. Last week’s events, including the B20 Summit and then the G20 Leaders Forum, showed the world what we are capable of, with smooth logistics, good infrastructure and, most importantly, a deft handling of the complex political and diplomatic processes that had to be followed. The resulting G20 Leaders Declaration is a powerful document that sets out a vision and set of actions that tackle several global challenges, and there is much that puts African development on a strong footing.

I was particularly pleased to see the Leaders Declaration aligns well with the recommendations put forward by the B20 in advance of the meeting. There is strong commitment to energy and food security for Africa, as well as industrialisation, trade and investment. Importantly, there are legacy initiatives that will aim to deliver on the commitments and intentions outlined in the Declaration.

One is the Africa Engagement Framework, which will be supported by South Africa for the next six years. This was launched by the finance ministers and central bank governors in the finance track of the G20 and will enable coordinated action across the world’s major economies to support Africa’s development and integration into the global financial system.

The Framework will coordinate economic policies, support financial stability, tax cooperation, infrastructure financing and debt sustainability. This is a powerful opportunity to deliver on several B20 recommendations to support investment in Africa. I want to see this accelerate the development of the African Continental Free Trade Agreement, which promises to unlock trillions in economic activity across the continent. It must also ensure development finance grows to support infrastructure and productive capacity, with debt priced appropriately for developing economies.

The G20 and B20 this year achieved significant alignment, and I’m pleased that as business, working with our counterparts across the world, we were able to table recommendations that have really engaged world leaders. We have taken the spirit of cooperation between business and government that we’ve developed over the last few years to solve domestic challenges and brought it to the world stage. South Africa’s business leaders stepped up to guide task teams to research and develop the recommendations, while rallying the resources needed to host an exemplary B20. This is a proud legacy that the G20 can take from its South African experience.

I was also really pleased to see the B20 handover, officiated by President Cyril Ramaphosa, to our counterpart in the United States, the US Chamber of Commerce and its president Suzanne Clark. It was only last year in Brazil that we accepted the responsibility to host the B20. It has been a whirlwind experience, but one BLSA is proud to have delivered in partnership with BUSA. It has not only been an excellent showcase for South Africa, but also enabled us to advance an African agenda with key economies across the globe. It cements a moment we can all be proud of. I look forward to working with the US Chamber to ensure a successful B20 in the year ahead.

However, international credibility requires domestic delivery. The positive sentiment we’ve generated through our hosting of the G20 , and our credit rating upgrade will only translate into sustained investment if we strengthen the fundamentals that investors scrutinise. Chief among these is the rule of law and the integrity of our criminal justice system.

The rule of law is fundamental to investor confidence, which is why BLSA has prioritised supporting reforms to the criminal justice system that was so badly damaged during state capture. Last week we hosted acting Minister of Police Firoz Cachalia and Business Against Crime CEO Graham Wright to discuss the progress being made in combating crime and corruption. The engagement was encouraging, reinforcing that government understands the direct link between effective policing, prosecutorial capacity, and the business environment we need to attract investment.

We need an effective and honest criminal justice system, from police through to prosecution, to ensure this is a safe place to do business and where our laws and agreements are enforced and respected. No amount of international goodwill can compensate for a breakdown in contract enforcement, property rights protection, or basic security. Investors making long-term capital allocation decisions weigh these factors heavily.

The Madlanga Commission has been examining the inner workings of the police force, and our meeting with Minister Cachalia explored how business can support improvements in capacity and integrity. Multilateral action, such as the Financial Action Task Force, has also helped the rehabilitation of our criminal justice system, creating pressure to develop the integrity of our financial sector and ensure it cannot be misused. FATF is a product of the G20 and the Leaders Declaration recommitted to ensuring FATF stays abreast of technological development.

FATF will be undertaking another peer-led review of South Africa starting next year. It is a constant project to improve our criminal justice system and FATF compliance is one element that must guide us. These international standards provide both pressure and support for the domestic reforms we need.

The G20 and B20 experience demonstrated what South Africa can achieve when we execute with excellence. We brought together government, business, and international partners to deliver a world-class event and advance substantive policy outcomes for Africa. Now we must apply that same focus and partnership to domestic challenges. Strengthening rule of law, accelerating infrastructure delivery, and maintaining fiscal discipline are not separate from our international positioning – they are the foundation that makes that positioning credible. The world has seen what we’re capable of. Let’s prove we can sustain it.

Busiswe Mavuso is the chief executive of Business Leadership South Africa

*** The views expressed here do not necessarily represent those of Independent Media or IOL.

BUSINESS REPORT