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PhreeNews > Blog > Africa > Economics > What’s at stake in South Africa’s large check?
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Economics

What’s at stake in South Africa’s large check?

PhreeNews
Last updated: November 14, 2025 4:49 am
PhreeNews
Published: November 14, 2025
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From 22 to 23 November, South Africa performs host to arguably its most essential worldwide occasion for the reason that 2010 FIFA World Cup, when world leaders and tens of 1000’s of delegates head to Johannesburg for the G20 Summit, the conclusion of the nation’s year-long presidency of the geopolitical bloc.

On arrival at OR Tambo Worldwide Airport, travellers are greeted by a big {photograph} of a beaming President Cyril Ramaphosa, framed by the nationwide flag and the insignia of the G20, exhorting guests to get pleasure from their keep within the “lovely nation”. However few delegates can count on a calming trip taking within the glories of Desk Mountain and the wildlife-filled drives of the Kruger Nationwide Park.

On the finish of a yr outlined by international commerce tariffs, geopolitical distrust and ongoing wars which have sundered the worldwide group, the summit is a essential second for the diplomatic corps of the world’s 19 main economies – together with the US and China – plus the European Union and African Union – to fulfill face-to-face and stake out some widespread floor.

Driving into Johannesburg, delegates are additional greeted with billboards illustrating a set of scales and promoting the three main themes chosen by South Africa to information the policymakers of their discussions: solidarity, equality and sustainability.

Non-alignment and multilateralism: the check

Whereas the scales are meant to characterize the worldwide stability of justice, they may equally illustrate the diplomatic balancing act that South Africa faces as host of an often-fractious bloc. For a rustic that has discovered itself straddling geopolitical faultlines between East and West and the World North and World South, whereas assuming (not all the time seamlessly) a number one function in African affairs, internet hosting the G20 will likely be a key check of its long-term dedication to non-alignment and multilateralism.

Lengthy earlier than the summit, there have been already ominous indicators that the brand new US administration was making ready to increase its wilfully disruptive affect to the occasion. President Donald Trump won’t attend in individual. His secretary of state Marco Rubio boycotted a G20 international ministers’ assembly in Johannesburg in February – accusing South Africa on Twitter of peddling a G20 agenda outlined by the administration’s pet hates: “DEI [diversity, equity and inclusion] and local weather change.”

But whereas the summit is anticipated to be a extreme check of South Africa’s diplomatic nous, specialists say that the G20 additionally affords a uncommon likelihood for South Africa to place its pursuits – and people of the African continent and the World South at massive – on the centre of the worldwide agenda, all whereas selling the nation as a significant funding vacation spot.

It’s a chance, says Steven Gruzd, head of the African governance and diplomacy programme on the South African Institute of Worldwide Affairs, that the nation’s authorities is greedy with each arms. “They’re undoubtedly taking it critically; they’ve put numerous effort into it. It’s prestigious for Africa, they usually’ve been very cautious to attempt to create some continuity between the final 4 presidencies – which had been Indonesia, India, Brazil and now South Africa. So creating world priorities – issues like fairer international justice, reformed international governance establishments, extra voice for Africa at worldwide boards, a fairer multipolar world order – all of these issues match very neatly into South Africa’s international coverage.”

President Cyril Ramaphosa (L) and US economist Joseph Stiglitz (R) on the launch of the G20 Inequality Committee’s Report on World Inequalities at Tuynhuys in Cape City on November 4, 2025. (Photograph by GIANLUIGI GUERCIA / AFP)

Amplifying Africa

As early as his State of the Nation deal with in February 2024, President Cyril Ramaphosa pledged to make use of the primary ever African presidency of the bloc to “place Africa’s improvement on the high of the agenda once we host the G20 in 2025”. By February, when Ramaphosa addressed the G20 international ministers’ assembly in Johannesburg, that pledge had been crystallised additional. “Africa is dwelling to among the world’s fastest-growing economies and faces distinctive challenges, such because the influence of local weather change, improvement wants and the results of worldwide commerce dynamics.

“The Summit’s location underscores the necessity for African voices to be heard on essential international points, like sustainable improvement, the digital economic system and the shift towards inexperienced vitality. It’s a nice alternative to advertise better collaboration between African nations and the remainder of the world.”

Ramaphosa additionally says that the discussion board affords an opportunity to spotlight Africa’s debt issues, problem the continent’s inflated price of capital – it prices the continent extra to borrow cash for essential infrastructure tasks than different areas – and to advertise its function as a significant future provider and potential supply of worth addition within the essential minerals worth chain.

He has launched an African Panel of Consultants to work on suggestions addressing impediments to development and improvement in Africa, together with the price of capital, along with launching the G20’s Extraordinary Committee of Impartial Consultants on World Wealth Inequality, chaired by Nobel Prize-winning economist Joseph Stiglitz. There will likely be additional room for dialogue of the African Continental Free Commerce Space (AfCFTA) and debate across the methodologies utilized by worldwide credit score scores businesses when judging African threat.

Music to African ears

All of that is music to the ears of African international locations, a lot of which previously haven’t felt adequately represented on the worldwide stage by their typically wealthier and extra seen neighbour.

Christopher Vandome, a senior analysis fellow with Chatham Home’s Africa programme and international economic system and finance programme, says that putting Africa on the coronary heart of the G20 affords a chance for South Africa to tie itself extra carefully to a continent which traditionally “doesn’t essentially like South Africa talking on its behalf”.

“It’s a extremely essential method of cementing the connection with the African Union. The politics of the African Union doesn’t actually replicate the politics of Southern Africa – its rather more dominated by East African and West African voices, and this is a crucial alternative for South Africa to showcase the African agenda and priorities for Africa, in what’s being carried out in fairly a fragile and delicate method. This isn’t South Africa representing Africa, that is South Africa being a conduit and a platform to permit Africa to talk to the world.”

Gruzd agrees that the G20 may characterize a brand new daybreak in relations between South Africa and the continent at massive. “I don’t know whether or not Africa but accepts the voice of South Africa – they’re nonetheless guarded, nonetheless cautious. We’ve had the horrible xenophobic violence that has flared up once in a while, and that has actually damage relations – I believe to a a lot better extent than South Africa really acknowledges and recognises. However they’re going full bore at this and giving it an excellent shot and taking it critically, and I believe there’s renewed confidence.”

That diplomatic push extends to firming up partnerships with non-African nations of the World South. South Africa would be the final of 4 World South nations to host the G20 following Indonesia (in 2022), India (2023) and Brazil (2024).

“This can be a completion of the presidencies of the democratic nations of the World South… it’s a few reliable voice of democratic nations of the World South having their view, placing their priorities across the reform of worldwide governance, higher illustration of World South companions throughout the governance establishments, and a stronger illustration of the developmental agenda,” says Chatham Home’s Vandome.

Cas Coovadia, sherpa for the B20, the G20’s official enterprise discussion board, says that the 30 enterprise suggestions submitted to the bloc from a league of eight taskforces have targeted on conventional themes of widespread concern. This yr, nevertheless, specific consideration has been paid to the issues of African and World South nations.

“There are all kinds of suggestions supporting open economies, free commerce and multilateralism – however that is additionally a chance for a reset. Multilateral establishments must replicate the altering international economics and there must be higher illustration from the South.”

South Africa’s international minister Ronald Lamola (C), director-general of the Division of Worldwide Relations and Cooperation (DIRCO) Zane Dangor (L) and South Africa’s G20 sous sherpa Xolisa Mabhongo (R) on the G20 International Ministers Assembly on the Nasrec Expo Centre in Johannesburg on February 21, 2025. (Photograph by Phill Magakoe / AFP)

Trump tries to spoil the celebration

That’s an agenda with which, by and enormous, the USA will not be on board.

On 8 November, Trump stated that it was a “complete shame that the G20 will likely be held in South Africa” and confirmed that no US authorities officers will attend. He repeated discredited claims about mass killings of Afrikaners that he beforehand aired in an notorious Oval Workplace assembly with Ramaphosa in Might.

In latest months, South Africa has attracted specific US ire, not least for initiating motion on the Worldwide Court docket of Justice towards US ally Israel for alleged genocide throughout its struggle in Gaza: the court docket ordered Israel to take all measures to forestall any acts opposite to the 1948 Genocide Conference. South Africa has been hit with tariffs of 30% by the US.

“I believe they’ve been a bit bit upset by the Individuals, who’ve completely different priorities now – [Marco] Rubio didn’t come for the international ministers assembly, [US secretary of the treasury Scott] Bessant didn’t come for the finance ministers assembly, Trump’s not going to come back, which is perhaps not a foul factor,” says Gruzd.

“However I believe South Africa has been a bit disenchanted on the US spoiling the celebration.”

Nonetheless, South Africa will likely be determined to keep away from an overt diplomatic rupture and is prone to downplay the US absence.

Busisiwe Mavuso, CEO of Enterprise Management, the organisation that represents South Africa’s largest firms, says that South African jobs rely upon easy relations with the Individuals, pointing to jobs misplaced within the automotive and agricultural worth chains by the lapsing of the US’s tariff-free African Development and Alternative Act.

“I don’t suppose we are able to ever underestimate the significance of US relations and the partnership because the South African group. That’s the reason our authorities is difficult at work looking for a technique to reset the connection. The US has mattered lots for South Africa and the broader African continent, and can proceed to matter.”

Solidifying partnerships

Whereas the summit is prone to see South Africa and different nations delicately tiptoeing across the US elephant within the room, there may be nonetheless a chance to cement worthwhile partnerships with different Western companions, who present little curiosity in following the US.

“What’s occurring within the States is problematic, [but] it’s opened area for brand new relationships and new alliances. Colleagues in Europe, Canada and elsewhere are saying they consider there’s a risk of opening up a unique kind of debate as a result of – simplistically – you’ve been tariffed, we’ve been tariffed, let’s discuss to one another,” says Coovadia.

In October a gaggle of European Union diplomats revealed an opinion article in South Africa’s Sunday Occasions newspaper by which they pointedly referred to themselves and South Africa as “dependable and predictable companions dedicated to forging a brand new period of co-operation within the pursuit of peace, improvement and prosperity… Whereas some have turned their consideration elsewhere, the EU not solely stays engaged, we’re doubling down with our assist and are right here to remain… We have now totally supported South Africa’s G20 presidency and its theme of solidarity, equality and sustainability all through this essential yr,” they wrote.

Vandome says different international locations spy a chance to have interaction with South Africa – and Africa and the World South at massive – within the face of US disinterest. “There’s been an enormous announcement by the EU firstly of the yr, and once more in the previous couple of weeks, round growing EU engagement and prioritisation of South Africa.

“The UK equally sees alternatives there, as do Australia and Canada. There’s a way of ‘OK we get it, the Individuals will not be coming’ – this may’t be interpreted as a significant snub on South Africa and the G20 in a method that ripples although all people else. With America tending at a decrease stage, it’s really seen by others as a chance to have interaction and double down.

“South Africa will likely be seeking to safe varied different bilateral agreements with different international locations and use it as a part of its financial coverage, bringing buyers in, showcasing what they’ve acquired and making an attempt to safe financial relationships.”

The G20 brand exterior the NASREC Expo Centre in Johannesburg. (Photograph by Wikus de Moist / AFP)

Defining success

Amid the tangled geopolitics, what’s going to G20 success appear like for South Africa? For these working with the B20, the objectives are maybe clearer lower.

“Given the present geopolitical state of affairs, given the uncertainties round multilateral commerce, and given the shift in international economics and the separation into completely different blocs, we expect that each the G20 and the B20 can deliver governments from the largest economies collectively to really talk about these items,” says Coovadia.

Mavuso agrees that bringing governments collectively to debate the worldwide commerce agenda in an period of tariffs and dislocation affords a possible win in itself.

“Constructing commerce relations will not be a business-to-business dialog, it’s a government-to-government dialog. We are able to have conversations however we’re additionally dependent and reliant on our political principals to really give you the relationships that may make the business-to-business half work,” she says.

For the G20 at massive, defining success could be trickier. Given the potential spoiler function of the US, a closing communiqué that brings all of the events collectively in settlement and amity could be a bridge too far. As a substitute, says Vandome, agreements on smaller agenda objects can be a constructive.

“We’ve acquired to maybe take a look at this compared to different G20s. What’s it that different G20s have tried to attain and been in a position to obtain? Does the G20 ever obtain a few of these issues?

“South Africa has from the outset put in place fairly an bold agenda. Even when there’s no declaration, some agreements and commitments round debt and the supply of capital for improvement in Africa will likely be a constructive factor. Some sort of settlement round supporting exploration or partaking extra deeply round worth addition for minerals will likely be an excellent factor. There’s stuff that may be achieved and not using a complete or unitary declaration on the finish.”

Finally, says Gruzd, South Africa can persist with its weapons and leverage the assist of different G20 nations to move essential agenda objects for Africa and the World South – even when commitments in a communiqué show elusive.

“South Africa will not be going to step again from what it believes on this. I believe it has numerous assist from the opposite G20 international locations to remain agency and, sure, we’re going to discuss concerning the local weather, a fairer international system and international governance reform. They’ll should handle the Individuals. If the G20 goes again to its core points that are in the end monetary and financial, then I believe it could actually make some progress.

“You’ve acquired to recollect these are dialogue boards, they aren’t decision-making boards. So I believe one needs to be modest within the expectations. What’s going to success appear like? Everybody being secure, the proper of constructive headlines, the conferences going and not using a hitch, an enormous presence of the large delegations.”

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