South Africa’s Moment

The South African economy is having a good year. the JSE Top 40 is up 37% over the past 12 months; the rand is 8.5% stronger since January; load-shedding is becoming a memory; corporate lending has risen 8.6% year-on-year to September.

South africa has regained its status as a “liberal democracy” in the latest V-Dem rankings, returning to the top quartile of countries in terms of political openness and good order.

Three weeks ago, South Africa exited the FATF gray list. The fiscal deficit will stabilise this year at a level far below what had been feared.The Treasury and Reserve Bank have agreed on a lower inflation target – a move welcomed by the market. and the country’s sovereign debt has been upgraded.

The result: the unemployment rate (though still far too high) is getting better; and economic growth (though still much too slow) is improving. on top of all of this, our B20 team – under the inspired and systematic leadership of Nonkululeko Nyembezi, Mxolisi Mgojo and Cas Coovadia – has delivered an excellent B20 year and a world-class B20 summit.

The extremely complicated agenda of the B20 summit ran like clockwork. The Sandton Convention Center and the Sandton precinct worked perfectly, as did the manny venues for side events throughout Johannesburg – proving Joburg is still a very capable city.

At the convention centre, the best of South Africa, and Africa as a whole, was on display. The African “bazaar” of products delighted our international guests with its variety and amazed them with its sophistication. African, and specifically South African, culture was beautifully and meaningfully incorporated into the conference, emphasising our sheer excellence in the creative arts and our unity in diversity. Not only were commercial ties being strengthened, but cultural ones too.

Most importantly, the convention centre and the whole city were packed with businesspeople from all over the world, doing what we do best: making connections and agreeing on plans to trade and produce.

Just as an example, I had several excellent business conversations, including with major investors from our own continent, from the US, Europe, and the Gulf. I know several fellow South African businesspeople who had similarly valuable discussions.

Of course, the B20 also made recommendations to our business organisations and the governments of our countries. The recommendations of the South African B20 have now been successfully submitted to the G20 and – more importantly for us – to the next B20 secretariat, which is the US Chamber of Commerce.

Some people, however, still worry that the B20 is “just a talk shop” or that its recommendations could somehow be negated by geopolitical tensions. Both concerns are misplaced. The B20 summit is never intended to be a binding signing ceremony. As business, we have no authority to bind anyone except ourselves.

By design, the B20 has no permanent secretariat, no enforceable key performance indicators (KPIs), no legal status beyond that of the voluntary associations that choose to run it. The annual summit is no more – and no less – than an significant symbolic moment in an ongoing multi-year dialog, which we have had the privilege of guiding this year.

In truth, the B20 is, quite openly and even proudly, a “talk shop”. It effectively works by generating ideas, building consensus, and creating momentum. And that, in itself, is a valuable contribution.