SONJA BOSHOFF: No room for error as SA takes up G20 presidency on behalf of Africa

SA presiding over the Group of 20 (G20) in 2025 not only carries the weight of expectation among African nations, but is also an unprecedented opportunity to redefine its trade and economic relations. 

There is a clear recognition from the world’s most powerful economies that as trade giant ourselves, we have arrived. This moment, steeped in a context of political renewal under the government of national unity (GNU), must be seized to position SA as a pivotal connector between Africa and the G20 nations. 

SA was awarded the presidency of the G20 countries at the conclusion of the 2024 summit in Brazil. The country will have to implement programmes to build up to the next G20 summit, an important multilateral congregation of 20 countries, as well as the European Commission and the AU. 

This presidency offers unparalleled opportunity to reshape SA’s trade and investment policies to foster an inclusive opportunity-rich economy. History is littered with examples of successful execution of such programmes, including the African Growth and Opportunity Act (Agoa) and Brics summits. 

SA’s presidency of the G20 coincides with a critical period of economic recovery and structural reform, processes that require dedication, hard work and the nurturing of trade relations. 

As outlined in the GNU’s statement of intent, trade with the G20 must be leveraged to bolster foreign direct investment (FDI), enhance market access for African goods and deeper integration in global value chains.

The G20 theme, Fostering Solidarity, Equality and Sustainable Development, must translate into actionable initiatives that directly benefit SA, the Southern Africa region and Africa as a whole.

The G20, representing 85% of the global economy, offers SA a treasure trove of proven strategies for economic growth and job creation. Developing nations such as Brazil, India and Indonesia provide valuable lessons in policy innovation and economic reform.

Brazil’s focus on agribusiness and its energy transition, India’s structural reforms to attract FDI and Indonesia’s job-creation laws have catalysed economic growth and significantly reduced poverty. What is stopping us?

Simplifying customs processes and reducing bureaucratic hurdles will make SA an even more attractive trade and investment partner. This was acknowledged in President Cyril Ramaphosa’s state of the nation address earlier this year. He said: “Government will be implementing measures to reduce red tape in priority areas, including the mining rights system, tourism transport operator licences, visas and work permits, early childhood development and the informal sector.”  

Trade with G20 nations already represents a significant portion of SA’s economic engagement. Yet the potential remains underutilised and unrecognised. SA must lead efforts to align G20 priorities with the African Continental Free Trade Area.

By promoting policies that reduce tariff and non-tariff barriers, we can create a more cohesive and competitive African market. Through G20 mechanisms such as the Compact With Africa, SA can secure financing for infrastructure projects essential for trade, such as modernising our ports, railways and logistics networks. 

As digital trade becomes increasingly central to global commerce, SA must push for G20 co-operation on digital infrastructure and data governance frameworks. A focus on e-commerce can empower small businesses to export more. It is essential to strategically target sectors where SA has a competitive advantage.

Critical minerals

As a leader in the production of critical minerals essential for green technologies, SA should attract investment from G20 nations to modernise its mining sector. By collaborating with global leaders in agricultural innovation, such as France and the Netherlands, SA can address food insecurity and unlock export potential for its agri-processing industries.

Partnering with Brazil, India and the EU, for example, can provide financial and technical support for SA’s just energy transition, ensuring a sustainable and inclusive energy future.

As the sole African member of the G20 SA must champion Africa’s trade interests. Advocating for reforms in international financial institutions to provide fair access to financing, and driving initiatives for debt restructuring, will empower the continent to engage more robustly in global markets.

SA must learn from these success stories. It is essential for the department of trade, industry & competition to abandon outdated, investment-restrictive policies and adopt data-driven, outcomes-orientated approaches that align with international best practice.

Learn from G20

SA’s alarmingly high unemployment levels demand an aggressive strategy for job creation. Trade and investment must be at the centre of this approach. By creating a conducive environment for investment and learning from G20 counterparts with similar socioeconomic circumstances, SA can drive sustainable growth that benefits all citizens. 

SA’s G20 presidency is more than a ceremonial role; it is a once-in-a-generation opportunity to reimagine and recalibrate its trade relations with G20 economies. By prioritising policies that foster investment, simplify trade and integrate Africa into global value chains, SA can transform its economy and elevate the continent’s role in global trade.

How embarrassing would it be if, after the year-long G20 presidency, SA were to look back on what occupying such high position meant and find nothing. For the country and the continent, let us therefore rise to the occasion and set a precedent for Africa’s engagement on the global stage. 

• Boshoff, a permanent delegate (Mpumalanga) of the DA to the National Council of Provinces, chairs the select committee of economic development & trade in the national parliament.