As South Africa takes over the G20 presidency for 2025 the country has bold ambitions, with economic growth, climate change and AI singled out as focus areas.
South Africa is the first African nation to take up the presidency of the G20, a multilateral trade bloc consisting of emerging economies as well as the EU and AU. Besides South Africa, the forum includes 19 countries, among them Germany, France, Indonesia, Brazil, China, Japan, the US and Russia. It represents 85% of the global economy and 75% of world trade.
The G20 presidency provides an opportunity for South Africa to influence global economic policies and promote sustainable development across the continent. President Cyril Ramaphosa aims to leverage this platform to address issues such as global trade, UN reform and debt relief. South Africa, whose G20 theme is “Solidarity, equality and sustainability”, has taken over from Brazil and will in turn hand over the reins to the US in late 2025.
Addressing the National Council of Provinces last week, Ramaphosa told MPs the spotlight will be on the global economy and climate change. “We will call on members of the G20 to stand in solidarity with those facing hardships, poverty and conflict. We will work to tackle inequality through fair and consistent trade rules, improve debt relief and increase funding for climate actions and development.”
Ramaphosa also emphasised the importance of collaboration and co-operation among G20 members to address pressing global political issues, stressing the need for sustainable solutions that prioritise the wellbeing of all nations and people.
Sanusha Naidu, an international relations analyst at the Institute for Global Dialogue, tells the FM that the G20 presidency allows South Africa to concentrate on domestic priorities and consider political and economic governance not only in Africa but in the Global South as well. “South Africa is the last of the four countries representing the Global South — after Indonesia, India and Brazil — and is the culmination of the Global South direction and agency. [The G20 presidency] has also been a space to bring the voice and issues of the Global South on the agenda in … a much clearer, coherent and pragmatic way.”
Naidu says the yearlong presidency allows South Africa to advocate Global South interests on the world stage. She believes it provides a unique opportunity for the country to make meaningful contributions to global governance.
International relations & co-operation minister Ronald Lamola told MPs recently that South Africa wants to learn from previous G20 presidencies how it can inform and shape the year ahead. “We will take lessons from Brazil, Indonesia and India. We will also make an assessment of the past 20 years of the G20 … of what has worked, what has been effective and what has been efficient. In terms of promoting the economic interests of the Global South, South Africa considers the G20 to be an important vehicle for advancing the aspirations of developing countries and Africa’s developmental priorities in particular.”
Lamola added that co-operation and collaboration with other African countries to enhance economic growth and trade within the continent will be key this year. He highlighted the African Continental Free Trade Area (AfCFTA) as a key initiative that will provide opportunities for economic development in Africa. “We will amplify the voice of the Global South, and it will be anchored on the AU’s Agenda 2063.”
The AfCFTA is the world’s largest free trade area by number of member states, population and geographic size. It covers a market of more than 1.3-billion people, including all 55 member states of the AU.
Addressing the closing of the G20 summit in Brazil on November 19, Ramaphosa further outlined the priority areas for South Africa in 2025, including reform of the global financial system and the debt issues many countries in the Global South face.
“We must enhance multilateral co-ordination on debt, drawing in the private sector. South Africa supports the call for the strengthening of the multilateral trading system and World Trade Organisation [WTO] reforms. We want to urge that the WTO must move towards reforms so that the trading system in the world is fair for all,” he said.
The African Development Bank estimates Africa’s total external debt at $1.152-trillion by end-2023. The bank says with global interest rates at their highest levels in 40 years, and as multiple bond debt securities issued by African countries reach maturity, Africa will pay $163bn just to service debts in 2024, up sharply from $61bn in 2010.
Ramaphosa also raised the importance of fair trade practices and the need for a level playing field for all nations involved in global trade. He highlighted the necessity of co-operation between countries to address pressing economic challenges and promote sustainable development.
We will call on members of the G20 to stand in solidarity with those facing hardships, poverty and conflict
— Cyril Ramaphosa
However, the G20 nations will also have to deal with a Donald Trump presidency and the possibility of a global trade war.
This week Trump fired the first salvo and threatened to impose 100% tariffs on the Brics countries (Brazil, Russia, India, China and South Africa) if they create a new currency to rival the dollar. Egypt, Ethiopia, the United Arab Emirates and Iran have also joined Brics.
Trump declared on social media that he would act if the Brics bloc supports another currency to replace the dollar. “We require a commitment from these countries that they will neither create a new Brics currency nor back any other currency to replace the mighty US dollar, or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy. They can go find another sucker.” Last week Trump said he would also impose a 25% tariff on Canadian and Mexican imports. The dollar still represents close to 60% of the world’s foreign exchange reserves, according to the International Monetary Fund.
But the US will take over the G20 presidency after South Africa, and Naidu says that for the next year the two countries will have to work closely together, which might ease tensions between them.
“The G20 troika is critical and that informs the agenda. Brazil, South Africa and the US will be the troika. This is a big issue for us and how we will engage with the Trump presidency — will Trump take the US out of the Paris climate pact? What about global inflation? It will be fascinating to watch as they will be talking to one another all the time.” She says open communication channels between the countries will be important to address any potential conflict or disagreement that may arise.
DA deputy international relations spokesperson Ryan Smith tells the FM the party hopes there will be further details on the country’s G20 agenda, as it seems vague. The party is also calling for more clarity and specificity in the agenda to ensure a clear direction and purpose for the presidency.
“The theme is vague, and it doesn’t give anyone an idea of what we are trying to pursue. The three words need to be unpacked: sustainability for what? Is it for a global financial framework? The world’s eyes are on us,” says Smith.
He says Brazil was clear about its agenda, which was to deal with food security. It was, Smith says, a “good element to focus on”, and South Africa should have an equally clear agenda. He says the G20 is an “exciting international opportunity” for the country, but the DA wants to ensure its presidency represents the government of national unity (GNU) and not only one party’s foreign policy; foreign policy has been a bone of contention in the GNU.
“While South Africa’s G20 presidency will be a first for Africa, it also coincides with our country’s new political reality under the GNU.” He adds that while preparation for the G20 may have been done before the election, “all activity henceforth must be a product of the GNU rooted in the statement of intent and the constitution”.
This will require collaboration and compromise among all parties involved in the GNU to ensure a unified approach on the international stage. The success of South Africa’s G20 presidency will depend on the ability of the government to navigate these challenges and present a cohesive front to the global community.
Naidu says the DA’s influence on foreign policy may not be as direct as that of other parties, but its ministers still play a role in representing the country internationally, and contribute to shaping the country's international relations through their respective departments. “You don’t share foreign policy, but you share alignment. The DA has six ministers, from education to agriculture to the environment, and if you look at COP 29, that was a DA minister [Dion George] representing the country.”
Over the course of 2025, South Africa will host multiple meetings under the two parallel finance and “sherpa” tracks.
“The sherpa track is really the engine room of the G20 where the actual business of G20 is discussed and officials meet and discuss best practices … The scope of the discussions is extensive so it’s not just foreign departments meeting; it’s the entire government interfacing on an international platform,” says Smith.
The first joint sherpa/finance and G20 central bank deputies meeting will be in Joburg next week. Cape Town will host the G20 finance track throughout 2025, and in February, the G20 central bank governors and finance ministers will be meeting.
South Africa’s G20 presidency will culminate with the heads of state meeting in Sandton, where Ramaphosa will hand over the presidency to Trump.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.