Leveraging 'the Power of Collaboration' Ahead of the WEF and G20

We emphasize the importance of partnership between the business community and the government as we prepare to present South Africa’s story on the global stage.

The annual gathering of the World Economic Forum (WEF) in Davos attracts a varied group of crucial global players keen to understand the opportunities and challenges confronting South Africa. It is essential that we align our core messages to showcase our nation’s strengths, correct misunderstandings, and advocate for our shared goals.

Read: War anxiety grips Davos experts with Ukraine peace still elusive

By presenting a unified message, we can enhance South Africa’s standing and impact within the international community.

This year’s WEF theme – Collaboration in the Intelligent Age – speaks directly to the new era we are entering, marked by revolutionary technologies and interconnected challenges. This theme is particularly significant for South Africa.

Collaboration is the foundation upon which we can harness innovation to address our economic and social challenges, ensuring that technological progress is inclusive and equitable.

Minister Solly Malatsi will explore this theme further, considering its ramifications for our country and how we can leverage it to drive growth and prosperity.

G20 Presidency

This year’s WEF is especially important for South Africa as President Cyril Ramaphosa will lead the South African delegation for the first time in many years.

This presents a prime opportunity not only to boost South Africa’s profile on the world stage but also to showcase our G20 Presidency.

Read:
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Under the theme of Solidarity, Equality, and Sustainability, our G20 Presidency reflects South Africa’s vision for global leadership:

Solidarity emphasizes the power of unity and mutual assistance, recognizing that our interconnected world demands collaborative solutions to shared challenges.
Equality underscores the importance of providing equitable opportunities for everyone and addressing systemic inequities, ensuring no one is left behind in our quest for global progress.
Sustainability reminds us of the need to align economic growth with social inclusion and environmental responsibility, laying the groundwork for a brighter future for generations to come.

The domestic economy …

As we assess the state of the South African economy, we acknowledge the challenges we face.

The contraction in the third quarter alongside a slight downward adjustment of second quarter GDP has resulted in a modest growth rate of 0.4% over the first three quarters of 2024.

Read:
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This was below the forecasts outlined in the 2024 MTBPS macroeconomic outlook. Nevertheless, we maintain a cautiously optimistic perspective.

There are significant growth prospects for the final quarter, spurred by a quicker-than-anticipated reduction in inflation, improved electricity reliability, and the stimulative effects of the two-pot retirement system withdrawals.

Despite the hurdles ahead, these encouraging indicators establish a basis for stronger growth in 2025 and beyond.

Government of National Unity

In the political realm, South Africa’s Government of National Unity (GNU) has demonstrated its capacity to unite the nation and drive advancement. This governance period has engendered meaningful dialogues aimed at accelerating structural reforms.

The positive feedback from both markets and the public has created a conducive environment for the GNU to meet its commitments and foster an investment-friendly climate.

Read: Where the post-GNU money has been made on the JSE

In conclusion, as we gear up to represent South Africa at Davos, let us acknowledge the power found in collaboration. Together, the government and the business community can effectively convey the most crucial messages: those of resilience, opportunity, and collective prosperity.

Thank you for your commitment to this mission. I am looking forward to our productive discussions today and to collaborating with each of you to ensure South Africa’s success on the global stage.

* This is an edited version of Finance Minister Enoch Godongwana’s speech to business leaders at a Pre-WEF Breakfast Session in Sandton on Thursday, 16 January.

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