We underscore the importance of collaboration between the private sector and 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 brings together a diverse array of key global stakeholders keen to understand the opportunities and challenges that South Africa encounters. It is essential that we align our primary messages to highlight the strengths of our nation, correct any misconceptions, and advocate for our shared goals.
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By presenting a unified message, we can enhance South Africa’s visibility and influence within the international community.
This year’s WEF theme – Collaboration in the Intelligent Age – speaks directly to the epoch we are entering, marked by transformative technologies and interconnected challenges. This theme is particularly significant for South Africa.
Collaboration is the bedrock upon which we can harness innovation to address our economic and social challenges, while ensuring that technological progress is inclusive and equitable.
Minister Solly Malatsi will further explore this theme, assessing its implications for our nation and how we can leverage it to encourage 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 is an excellent opportunity not only to elevate South Africa’s profile on the global stage but also to emphasize our G20 Presidency.
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Under the banner of Solidarity, Equality, and Sustainability, our G20 Presidency reflects South Africa’s vision for global leadership:
- Solidarity emphasizes the strength found in unity and mutual support, recognizing that our interconnected world requires collaborative solutions to shared challenges.
- Equality underscores the importance of providing fair opportunities for all and addressing systemic inequalities, ensuring that no one is left behind in our quest for global progress.
- Sustainability serves as a reminder of the necessity to align economic growth with social inclusion and environmental stewardship, paving the way for a brighter future for generations to come.
The domestic economy …
As we assess the current state of the South African economy, we acknowledge the challenges we face.
The decline in the third quarter, along with a slight downward revision of the second quarter GDP, has resulted in a modest growth rate of 0.4% over the first three quarters of 2024.
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This growth rate falls short of the forecasts outlined in the 2024 MTBPS macroeconomic outlook. Nevertheless, we maintain a cautiously optimistic view.
There are significant growth prospects for the final quarter, driven by a quicker-than-anticipated decrease in inflationary pressures, improved electricity reliability, and the stimulus effects from withdrawals under the two-pot retirement system.
Despite the obstacles ahead, these encouraging indicators provide a foundation for more vigorous growth in 2025 and beyond.
Government of National Unity
In the political arena, South Africa’s Government of National Unity (GNU) has demonstrated its capacity to unite the nation and spur progress. This governance period has encouraged meaningful dialogues aimed at accelerating structural reforms.
The favorable reception from both markets and the public has created a conducive environment for the GNU to fulfill its promises and foster an investment-friendly atmosphere.
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 appreciate the power of collaboration. Together, the government and the business sector can convey essential messages: those of resilience, opportunity, and collective prosperity.
Thank you for your commitment to this mission. I look forward to our productive discussions today and to collaborating with each of you to ensure South Africa’s success on the international platform.
* This is an edited version of Finance Minister Enoch Godongwana’s speech delivered to business leaders at a Pre-WEF Breakfast Session in Sandton on Thursday, 16 January.
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