Connect with us

World

G20 and Africa: Unique Platform for Transformative Economic Partnership

Published

on

Brand South Africa, Lefentse Nokaneng

By Kestér Kenn Klomegâh

The Group of 20 (G20) is an intergovernmental forum comprising 19 sovereign countries, the European Union (EU), and the African Union (AU). It works to address major issues related to the global economy, such as international financial stability, climate change mitigation and sustainable development, through annual meetings of Heads of State and Heads of Government.

The G20 was created in 1999 in response to several world economic crises, and South Africa has been the only African member in the Group. However, in September 2023, at the 18th G20 Summit, Indian PM Narendra Modi announced that the African Union (AU) has been included as a member of the G20, making it the 21st member of the intergovernmental forum. South Africa will take over the G20 presidency in 2025.

In mid-December 2024, Brand South Africa’s General Manager Lefentse Nokaneng, discussed in this insightful interview, the significance of the G20 forum, the multifaceted prospects and unique opportunities G20 could offer Africa. Here are the interview excerpts:

What are the aspirations, as South Africa prepares to take over the G20 presidency from Brazil, for Africa?

As South Africa prepares to take over the G20 presidency from Brazil in 2025, our aspirations for Africa have always been clear and compelling. As a founding member of the G20, South Africa has played a pivotal role in advocating for Africa’s inclusion within this influential multilateral forum.

Under the theme “Solidarity, Equality, and Sustainable Development,” South Africa’s presidency presents a significant opportunity to advance crucial reforms in the global governance system, ensuring that it is more representative of and responsive to the developmental needs of Africa and the Global South. To this, by focusing on reforms to the multilateral trading system and the global financial architecture, we aim to effectively address the pressing challenges of underdevelopment and transform the fortunes of the most vulnerable communities, many of whom reside in Africa.

As the leading economy on the continent, South Africa is deeply committed to unlocking Africa’s vast potential and fostering inclusive growth through the African Continental Free Trade Area (AfCFTA). We envision a G20 agenda that not only amplifies Africa’s voice but also drives collaborative efforts toward sustainable development aligned with the aspirations of the Pact for the Future and the achievement of the Sustainable Development Goals (SDGs) by 2030. This vision aligns with the African Union’s Agenda 2063, which aims to realize “The Africa We Want,” ultimately improving the lives of all Africans.

But generally, how has Africa, as a continent, so far benefited from G20, and what concretely can we underscore as remarkable achievements?

The inclusion of the African Union (AU) as a permanent member of the G20 can be underscored as a key achievement for the continent, providing a crucial platform for African nations to have a voice and to engage directly with major economic powers on key issues, that affect them, such as debt relief, security, infrastructure development, pandemics, and climate change.  Prior to the AU’s membership, South Africa was the only African representative in the G20, which limited the continent’s ability to influence discussions on issues affecting its nations.

Africa stands at a pivotal moment in its development journey, with the G20 providing a crucial platform to address pressing development challenges and unlock immense growth potential through the African Continental Free Trade Area (AfCFTA). The African Development Bank highlights a significant $70 to $100 billion deficit in infrastructure investment across the continent, underscoring the need for a substantial 6% of GDP investment to achieve growth rates of 3% to 3.5%, well above the current global average. Collaborating with G20 partners offers Africa the opportunity to mobilize essential resources and expertise to bridge this gap.

Central to this effort is the reform of the international financial architecture to create equitable opportunities for Africa to harness its vast potential. By embracing innovative financing mechanisms, the continent can effectively address critical infrastructure gaps, unlocking pathways to inclusive and sustainable development. It is also vital to advocate for fair climate policies that recognize the diverse developmental stages of African economies, ensuring that measures such as carbon taxes do not disproportionately impact emerging nations.

To this end, investments in Africa’s energy transition are crucial. Notably, Germany, under the G20 Compact with Africa Initiative, has unveiled a R76-billion investment package aimed at facilitating Africa’s green energy transition by 2030. Furthermore, the New Collective Quantified Goal (NCQG) is a vital component of the Paris Agreement, setting a new financial target to support developing countries in their climate actions post-2025. By building on the $100 billion target established in 2009, the NCQG seeks to address persistent gaps in climate finance and provides a more ambitious and realistic framework for sustainable development.

For Africa, the commitment of developed nations to these climate goals is integral to achieving success. By ensuring adequate financing and support, Africa can not only meet its climate objectives but also harness its natural resources for sustainable growth. These initiatives highlight the importance of G20’s commitments to fostering international partnerships that drive meaningful change for Africa’s development.

And now, within the context of geopolitical changes, what else can we expect from G20 as South Africa takes over from Brazil?

As South Africa prepares to take over the G20 presidency from Brazil, it will continue its commitment to being a responsible global citizen, particularly considering ongoing geopolitical changes. During its presidency, South Africa will amplify its advocacy for peaceful conflict resolution and the promotion of democratic principles and human rights on the international stage. This commitment is grounded in a foreign policy that emphasizes neutrality, respect for mediation, and the critical importance of peace.

Leveraging its leadership within the G20, South Africa aims to navigate and address pressing geopolitical tensions by fostering constructive dialogue among nations. It seeks to promote collaborative approaches that prioritize diplomacy and multilateralism, ensuring that diverse perspectives are acknowledged and that solutions are inclusive. In this way, South Africa will play a pivotal role in shaping a more stable and peaceful global environment.

South Africa has consistently been advocating for, both structural and operational, reforms at the multinational institutions, what about putting first the internal order at the African Union (AU)?

Advocating for reforms at multinational institutions and strengthening the internal order of the African Union (AU) are not mutually exclusive; rather, they are complementary efforts essential for effective continental and global governance, particularly in a fractured geopolitical landscape. Enhancing the AU’s governance and operational frameworks is crucial to addressing Africa’s pressing challenges, which the AU has prioritized and encapsulated in its Agenda 2063. Enhancing the AU’s governance and operational frameworks is crucial to addressing Africa’s pressing challenges, which the AU has prioritized and encapsulated in its Agenda 2063. Simultaneous engagement with global governance structures is necessary to ensure that they advance critical reforms, making the global governance system more representative of and responsive to the developmental needs of Africa and the Global South.

The AU’s commitment to good governance has been a priority for many years and is prominently featured in its Agenda 2063: The Africa We Want. This strategic framework outlines the AU’s vision for transforming Africa into a global powerhouse and emphasizes good governance, democracy, respect for human rights, justice, and the rule of law among its seven aspirations. According to the 2022 IIAG report, more than half of Africa’s population now resides in countries where overall governance has improved, reflecting the positive impact of these efforts.

As South Africa assumes the G20 presidency as a member of the AU and the Global South, it is uniquely positioned to drive the development agenda for both Africa and the Global South while advocating for essential reforms in global governance. This focus aims to address the pressing need for more inclusive and effective multilateralism that better represents the interests and aspirations of developing nations.

Click to comment

Leave a Reply

World

Dubai BRICS Forum Will Help Develop Small and Medium Businesses

Published

on

Konstantin Klimenko-Bogdanov BRICS Investment Forum

By Kestér Kenn Klomegâh

In this insightful conversation, the Chairman of the Organizing Committee of the Dubai BRICS Investment Forum, academician Konstantin Klimenko-Bogdanov, highlights the primary importance of the forthcoming corporate business forum within the context of the geopolitical situation and offers a distinctive roadmap for economic collaboration of the BRICS countries. Here are the interview excerpts:

What does the upcoming BRICS Investment Forum in Dubai mean, especially in the context of geopolitical rivalry and competitive struggle?

In theory, competitive struggle should contribute to the development of the economy. After all, competition does not allow for the establishment of a monopoly, the dominance of only an exclusive minority of market participants. But on the condition that this is fair competition. But we are witnessing uncivilized methods of dividing spheres of influence in the market, cynical exploitation of natural resources in Africa and Asia by Western transnational corporations, and monopolization of entire industries in developing countries.

For example, the telecommunications sector, and the banking sector in Africa practically do not belong to Africans. Sometimes the name of a bank can have the word “Africa”. The real owners of banking capital are in Paris, London, and New York.

The income from the national wealth of African and Asian countries is distributed amazingly cynically. For example, coffee is purchased in Africa for a price of 1 dollar per kilogram, and sold in Europe for 4 dollars!

Unfair competition is supplemented by geopolitical rivalry in the form of escalating international tensions, declaring trade wars, and sanctions, and creating artificial military conflicts. Again, the goal of conflicts and military operations is only one – to seize resources. For example, in Iraq, and Syria, the Americans brazenly pump oil, without losing money on its purchase. And the US President does not hesitate to take away the Panama Canal or seize the island of Greenland.

Therefore, the goal of holding the Dubai BRICS Investment Forum is to find ways to facilitate civilized international economic cooperation in the conditions of trade wars, military conflicts, and sanctions. It is necessary to make an honest analysis and develop a roadmap for the joint economic development of the BRICS countries and friendly states.

Can you point to the prospects for its preservation (the forum) as an extraordinary annual platform for stimulating bilateral and multilateral transactions, and investments and, possibly, establishing a flow of corporate transactions between BRICS+ members and partner countries?

The Dubai BRICS Investment Forum is definitely not a one-off event. It is the basis for creating a global BRICS business community, which will operate on an ongoing basis. It will consist of the BRICS International Club, the BRICS House International Network, the Alliance of Small and Medium Enterprises, the Tourism Alliance, the Women’s Business Association and a number of other organizations. A digital platform, BRICS INFO, will be created.

The task of these structures is to establish a flow of trade, concentrate investment resources, and create a flow of corporate transactions.

Special attention will be paid to small and medium businesses. We intend to connect about 10,000 small and medium businesses into one ecosystem. The total turnover of this ecosystem in 2025 alone will amount to about US$700 billion.

We will also have social investment projects. The BRICS Student Card project is being created for students. With this card, students will receive various forms of social support in the form of discounts on air tickets, train tickets, purchases of goods in supermarkets, and so on. The most talented students will receive incentive scholarships.

It is planned to create a network of BRICS campuses through joint investments of BRICS businessmen. The campuses will house a university, college, and lyceum. The network will operate in 10 countries.

What priority investment projects will the forum promote?

Our priority is the Small Energy project. Half of the African continent and part of Asia have no electricity at all! This is unacceptable for the 21st century! We plan to create hundreds of small power plants on solar panels, wind turbines, and diesel generators through joint investments.

We have very interesting joint investment projects planned in the real estate sector. New housing complexes under the BRICS House brand will be built in many countries. In essence, these will be “cities of the future.” The main priority in the concept of these cities is “human ecology.” For example, these cities will not have any gasoline-powered vehicles at all. Only electric vehicles. But there will also be restrictions on cellular repeaters that emit harmful electromagnetic radiation. The goal of the project is to create areas that are as favourable as possible for human life. Many investors are already ready to invest in these projects.

By the way, why are you holding this important BRICS event in Dubai, United Arab Emirates? Are there any distinctive advantages that it offers to potential business participants, including women and young entrepreneurs?

The choice of Dubai as a permanent venue for our forum is based on expert opinion. We are confident that the most comfortable infrastructure and conditions for holding large-scale summits and creating business development centres have been created here. The UAE has a balanced tax system, thoughtful economic policy, and a tolerant atmosphere. And Dubai is a city of dreams, a bright future. Therefore, our forum will be held here annually and the residences of the BRICS House, BRICS Club, and the Alliance of Small and Medium Business will operate here permanently.

Based on the above reasoning, can we perhaps see the difference between the World Economic Forum in Davos and the BRICS Investment Forum in Dubai in the current situation of ongoing global transformations and development?

The difference in key approaches. At the Davos Forum, the agenda is set by Western transnational corporations. They initiate discussions of globalization plans. Our forum is intended for small and medium-sized businesses in Eurasia and Africa. We intend to discuss not globalization, but how to develop national economies and establish active cooperation between them.

At the Davos Forum, trends are created by politicians. Many participants go to this forum to listen to heads of state and high-ranking government officials. There will also be officials and parliamentarians at the Dubai Investment Forum. But they are not the main participants here. They will listen more than they speak. It will be entrepreneurs and taxpayers who support officials with their taxes who will speak more often. Because this is a platform for business, not a tribune for politicians.

Continue Reading

World

Swedfund Offers $15m Loan for Food Processing in Africa

Published

on

food processing

By Modupe Gbadeyanka

A working capital loan of up to $15 million has been given to Robust International by Swedfund to support food processing and smallholder farmers in Africa.

The credit facility is to ensure food security and an increased local processing capacity on the continent.

It was stated that the loan would enable Robust to source local commodities to new processing facilities and thereby spur job creation, economic growth and trade.

The company will buy sesame seeds and cashew nuts directly from cooperatives, aggregators and farmers locally to support operations at its new processing facilities in Côte d’Ivoire, Mozambique and Burkina Faso.

The $15 million funding is part of a joint initiative together with the Dutch, British and French development finance institutions and the Dutch fund manager, ILX.

Robust is a multi-national trader of agricultural commodities, specialising in sesame seeds and cashew nuts, sourcing primarily from East and West Africa.

Swedfund now joins FMO (the Dutch entrepreneurial development bank), British International Investment (BII), Proparco and ILX, the Dutch fund manager, to further support the development of enhanced local processing. The total working capital facility amounts to up to $105 million.

Africa exports many agricultural products for processing and refining. Robust now takes the step to do this locally instead, leading to job creation, development of the local supply chains, increased capacity and lower emissions.

The organisation has a strong focus on human rights and decent conditions for workers and farmers in their supply chain.

“Through the working capital facility, we offer funding where local banks are not able to,” the Head of Sustainable Enterprises and Food Systems at Swedfund, Sofia Gedeon, said.

Continue Reading

World

UNICEF Seeks Urgent $22m for Children in DR Congo

Published

on

UNICEF Humanitarian appeal

By Adedapo Adesanya

The United Nations Children’s Fund (UNICEF) has launched an urgent appeal for $22 million to provide emergency assistance to children in eastern Democratic Republic (DR) of Congo amid spiralling violence.

Business Post reports that fighters from the M23 rebel group allegedly backed by Rwanda have taken control of most of Goma – a major city of more than a million people in the east of DR Congo.

The mineral-rich east of the Democratic Republic of Congo has been dogged by conflict for more than 30 years, since the 1994 Rwandan genocide.

Numerous armed groups have competed with the central authorities for power and control of the potential fortune in this vast nation.

With the latest spate of escalation, UNICEF in a statement noted that it is gravely concerned about the rapidly deteriorating humanitarian situation in eastern DR Congo.

“An additional 658,000 people became displaced in North Kivu and South Kivu provinces in the past three months alone, at least 282,000 of them are children,” it said in a statement.

Amidst the increasingly volatile situation, with fighting moving into Goma, the provincial capital of North Kivu, families have abandoned displacement camps on the northern and western outskirts of the city and moved to other locations in the centre of town.

Some of these people are moving for the third, fourth or even fifth time in recent weeks, UNICEF said.

According to Mr Jean Francois Basse, UNICEF DRC’s acting Representative, “The situation in Goma is extremely grave and further complicating a humanitarian situation that was already beyond dire.

“People have been exposed to traumatic events, and they are hungry, thirsty and exhausted. Families are sheltering in place to avoid being caught up in the violence. Electricity, water and internet have all been cut. It’s hard to overstate how deeply children and their families are suffering.”

“Ultimately, we need parties to the conflict to put an end to the military escalation, which is exacerbating the suffering of children and worsening the already appalling humanitarian conditions,” Mr Basse added.

For UNICEF, children are at high risk as crowded and unsanitary conditions make the spread of diseases – such as cholera, measles and mpox – all the more likely.

“Parents are unlikely to take sick children to hospitals for fear of being caught in the crossfire and because they know there are no beds,” it added.

It also warned about the danger of kidnapping and abduction, recruitment by armed groups, and sexual violence.

“UNICEF is calling for $22 million to continue delivering life-saving support which includes the provision of clean water and proper sanitation, medications and medical supplies, treatment for children who are severely malnourished, and protection services,” the UN agency added.

Continue Reading

Trending