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IOL News
15-07-2025
- Business
- IOL News
G20 a chance for South Africa to redefine global leadership
President Cyril Ramaphosa addresses the G20 High Level Opening Session on the margins of the 79th Session of the General Assembly in New York. South Africa assumed the G20 Presidency this year under the theme 'Solidarity, Equality and Sustainable Development'. Image: Kopano Tlape| GCIS Naledi Ramontja AS SOUTH Africa prepares to host the G20 Summit in just a few months, it steps onto the world stage during some of the most turbulent and unpredictable periods in recent history, marked by global conflicts, economic instabilities, and shifting power dynamics. At home, South Africa is also facing its serious challenges: high unemployment, poor service delivery, high levels of corruption, sluggish economic growth, and ongoing political uncertainties. Yet despite these pressures, there is a sense of cautious optimism. South Africa follows in the footsteps of recent G20 presidencies, Brazil in 2024, Indonesia in 2022, and India in 2023. All of these are countries of the Global South that have successfully used their leadership to shape the agenda, elevate new voices, and signal a changing world order. For decades, the United States held a dominant position in global affairs, but that era of unchallenged leadership is slowly giving way. We are witnessing the rise of a multipolar world, where global power is distributed among several nations. China's Belt and Road Initiative, its expanding military presence in the South China Sea, and dominance in emerging technologies like 5G and AI signal a clear push for influence. Russia, meanwhile, has adopted an aggressive posture, from the annexation of Crimea in 2014 to the full-scale invasion of Ukraine in 2022. Its growing ties with China, Brazil, Iran, and parts of Africa prove that Moscow is re-asserting itself, too, as a world leader. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading From 2024 up to 2025, the BRICS bloc expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, UAE, and most recently Indonesia. The broadening of the bloc shows growing frustration with Western-led institutions and a desire for a more balanced global order. Meanwhile, Western influence is visibly weakening. Events like Brexit and the growing divisions within the European Union point to internal fatigue and shifting priorities. The Summits bring together leaders from the world's largest economies to address pressing global challenges and foster economic cooperation. Right now, those challenges are mounting from geopolitical tensions and economic slowdowns to technological disruption and climate instability. For South Africa, taking on the G20 presidency is not just about hosting another global event it's about leading through uncertainty. It's about stepping up at a time when clear leadership, inclusive dialogue, and courageous diplomacy are more needed than ever. Since taking over the G20 presidency in December 2024, the country has already hosted several important events. In February 2025, Finance Ministers and Central Bankers met in Cape Town to discuss climate finance, debt relief, and the risks of protectionism, though major countries like the U.S. and China were absent. Early in the year, the Foreign Ministers met at Nasrec to discuss global tensions, including the wars in Ukraine and Gaza. South Africa emphasised its neutral and principled stance during these talks. Last week, a Sherpas meeting was held in Sun City, where officials discussed a wide range of issues. These meetings also worked on early drafts of the Johannesburg Leaders' Declaration. The introduction of the G20@20 initiative adds deeper meaning to South Africa's presidency. As the forum marks 20 years, this milestone offers a symbolic and strategic moment for South Africa to reflect on how the G20 has evolved and how it can be reshaped to better serve a changing world. For us, this is not just about looking back; it is about making the G20 more inclusive, more transparent, and more responsive to global issues. The 2030 Agenda for Sustainable Development also stands at a critical crossroads, and the need for action has never been more urgent. Throughout the year's meetings and consultations, South Africa has consistently emphasised the importance of turning words into measurable outcomes and calling for real progress on energy access, climate finance, debt reform, and digital inclusion. Of course, the country's G20 leadership is focused on a few important areas held under the unifying theme of Solidarity, Equality, and Sustainability. At the same time, the world is facing more and more conflicts. The Russia-Ukraine war is the biggest in Europe since World War II. In the Middle East, the Israel-Hamas war continues, while the Syrian civil war drags on. Israel and Iran, long-time regional rivals, are now also at locked heads, an increasingly dangerous confrontation that has spilled beyond rhetoric into direct military action. The United States continues to stand firmly with Israel in the conflict, while the Iranian Foreign Minister Abbas Araqchi rushed to the Kremlin to secure backing from Russia. At this point, the situation remains highly unpredictable, and it's unclear how far the confrontation could escalate or what broader consequences it may bring for regional and global stability. Here in Africa, countries like Burkina Faso, Mali, and Niger have seen military takeovers. Highlighting a troubling trend of democratic backsliding and growing instabilities. Tensions between the U.S. and China have turned into a kind of modern Cold War. There are trade wars, restrictions on technology, and fights over important materials. The U.S. has blocked some exports to China, and China has done the same in return. This rivalry is no longer just about trade, it is about control over the future of technology and global influence. The relationship between South Africa and the United States is also facing stress. South Africa's attempts to maintain a non-aligned stance on global conflicts, particularly the Russia-Ukraine war have drawn criticism from Western lawmakers. The tensions deepened further after South Africa brought a case against Israel to the International Court of Justice (ICJ), sparking strong political reactions across the world and in Washington. Against this backdrop, uncertainty surrounds the planned handover of the G20 presidency to the United States especially with President Donald Trump reportedly refusing to attend the Johannesburg summit in November. The G20 summit is not just another diplomatic gathering, it is a chance to confront hard truths, reimagine international cooperation, and strengthen the foundations of a fairer, more resilient world. If South Africa can rise to this moment with honesty, vision, and courage, it will not only shape the legacy of its leadership it will help redefine what global leadership looks like in an era of profound change. And when the time comes to hand over the presidency in 2026, it should be able to do so with confidence and pride. Ramontja is an research assistant at the Institute for Pan-African Thought and Conversation, University of Johannesburg Cape Times
IOL News
22-05-2025
- Business
- IOL News
South Africa's National Budget: Stability in the Rand amid muted market reactions
Finance Minister Enoch Godongwana delivers the Budget speech in National Assembly held at CTICC in Cape Town. Image: Kopano Tlape/GCIS Following Finance Minister Enoch Godongwana's muted presentation of the National Budget, for the third time, on Wednesday, markets haven't been seriously agitated, and the fiscal framework is being seen as broadly investor friendly. The rand was stable early on Thursday morning at R17.97, after closing at a similar level after the National Budget was presented. It had opened at R17.89 on Wednesday, which signifies no major movement. The JSE's All Share Index, by late morning, was 0.56% down on the day, coming off its 1% gain and seven-day high at Wednesday's close. Old Mutual wealth investment strategist, Izak Odendaal, said the 'decidedly uneventful' and 'boring' National Budget was good and the financial market response was muted. The rand was stable early on Thursday morning at R17.97, after closing at a similar level after the National Budget was presented. Image: Morningstar Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Godongwana proposals included limiting direct tax increases to so-called 'sin' taxes, an increase in the fuel level, although he did say that gross domestic product (GDP) for the year would come in at 1.4% this year, down from a previously predicted 1.9%, markets haven't moved dramatically. At the same time, he said it was not an 'austerity' budget, indicating that he did not seek to reduce expenditure dramatically. He did, however, warn that subsequent budgets would need to ensure that government received more revenue, and that government would continue to pay large amounts to service debt, which would amount to more than R1.3 trillion over the next three years. South Africa's two previous Budget attempts failed to gain approval because of proposed VAT hikes, and markets had been concerned over DA threats to leave the multi-party government. Investec chief economist, Annabel Bishop, said that – with revenue and expenditure projections revised lower, and genuine potential for upside on revenue – the credit rating agencies are unlikely to react negatively. Casey Sprake, economist at Anchor Capital said, post the National Budget, National Treasury has made a significant policy pivot by cutting R70 billion in spending over the period between fiscal 2026 and 2028, which offsets the lower revenue trajectory and helps stabilise the main budget deficit. 'In an environment where fiscal credibility is under strain, such restraint is likely to be well received by financial markets,' she noted. Odendaal said that the 'key thing from investors' point of view is that fiscal consolidation remains the priority'. Sprake added that the 2025 National Budget is 'broadly seen as marginally bond-positive and moderately supportive of the rand over the medium term, primarily due to its emphasis on expenditure restraint amid lower revenue projections'. What is crucial, Sprake added, is that government has chosen to rein in spending rather than implement broad-based or distortionary tax increases which is 'an approach that sends a constructive message to investors'.
