As the first African nation to preside over the G20, South Africa is stepping onto the world stage with confidence and purpose. Guided by the principles of Solidarity, Equality, and Sustainable Development, the country is driving transformative discussions that shape both continental and global progress.
The resilience of the country’s economy is not in question as we will see from the headline numbers: just recently Google South Africa launched South Africa’s R2.5-billion cloud region, integrating it into Google Cloud’s global network.
As the cabinet noted on 25 March 2025: “This project is Google’s first in Africa and marks a significant investment in South Africa’s technology infrastructure.”
The European Union (EU) also announced a R93.5-billion Global Gateway Investment Package to support strategic investment projects in clean and just energy transition, digital and physical connectivity infrastructure, as well as the local pharmaceutical industry.
South Africa’s latest Quarterly Employment Statistics reflected employment gains in the trade, business services, transport and the electricity sector.
The country’s tourism sector – one of South Africa’s most important industries – is showing signs of recovery post-Covid. It currently supports more than 1.5 million jobs and contributes 7.2% to our GDP.
The country is also pushing forward on its just energy transition.
President Cyril Ramaphosa proclaimed the Climate Change Act, 2024 on 17 March 2025, which enables the development of effective climate change policies and the long-term plan for a transition to a low-carbon economy and society.
Alongside that, the International Partners Group, a coalition of organisations and countries made up of the European Union (EU), France, Germany, and the United Kingdom, has stepped forward to fill in the funding gap left by the United States after its withdrawal from the Just Energy Transition Partnership.
Cabinet also noted: “The total international pledges to South Africa now amount to US$12.8-billion, which include more than US$9-billion from the IPG along with contributions from Spain, Switzerland and Canada.”
But South Africa’s story is not just one of numbers: it is about people. It is about the optimism reflected in our recent State of the Nation Brand Report, where 57% of South Africans believe the country is heading in the right direction, and 51% trust the Government of National Unity to tackle challenges. It is about unity in diversity – a value articulated in the National Development Plan, lived through people’s daily lives, and echoed in the country’s global moral leadership.
South Africa’s story is one of hope and unity, which is further cemented by the National Social Cohesion Index, which has risen to 65.7%, signalling clear progress in building an inclusive, cohesive society.
At the heart of the findings lies a powerful message: South Africans draw strength from their diversity, shared struggle, and unwavering sense of identity.
In 2025, South Africa is not just a participant in the global narrative – we are helping to write it. One only needs to look at the country’s inputs in leading the G20.
The G20 presidency is no ordinary appointment, it represents a profound opportunity for South Africa to shape global economic policy and influence the global financial system.
The country is seeking common ground on significant issues such as climate change, trade reform, energy security, and global health crises, all of which have direct implications on its own socio-economic priorities.
For South Africa, the presidency offers a rare chance to expand its economic footprint and deepen its global ties.
This means advocating for policies that attract greater foreign investment, support technological innovation, and help diversify South Africa’s economy.
Key initiatives include sustainable infrastructure development, the just energy transition implementation plan and the green hydrogen roadmap, aimed at achieving energy security and reducing carbon emissions.
All of this is in keeping with Priority 1 of the South African government, which focuses on building inclusive economic growth and job creation, to maintain policy stability and strive to create a favourable business environment to boost economic growth.
South Africa hosted the first G20 Trade and Investment Working Group between 18 – 20 March 2025, focusing on building inclusive economies and the successes and failures of the multilateral trade system over the last 30 years. It also discussed trade and inclusive growth, a responsive trade agenda, green industrialisation, and the reform of the World Trade Organisation.
South Africa’s influence extends beyond its borders, serving as a prominent advocate for the economic development agenda of the African continent through other multilateral institutions such as the African Union (AU) and BRICS+, along with the EU.
The country is committed to the success of the African Continental Free Trade Area (AfCFTA), strengthening economic cooperation through open trade and strategic partnerships.
The EU has long been one of South Africa’s most important trading partners. The EU-South Africa trade relationship is anchored in the Trade, Development, and Cooperation Agreement, which has fostered increased access to European markets for South African goods, including agricultural products, manufactured goods, and minerals.
The EU is South Africa’s largest trading partner, with imports from the EU totalling R426-billion in 2024, and exports to the EU reaching R351-billion in 2024.
The economic ties with the EU also provide a steady stream of foreign direct investment. European companies have a long history of investing in South Africa, particularly in sectors such as manufacturing, renewable energy, and financial services.
South Africa recently hosted the 8th Summit in Cape Town, where President Ramaphosa met with António Costa, President of the European Council and Ursula von der Leyen, President of the European Commission.
At the end of the meeting, the leaders reaffirmed their unwavering support for the strategic partnership based on shared values of democracy, human rights, equality and sovereignty.
A concluding statement noted that the meeting took place against the backdrop of rising geopolitical and geo-economic competition and instability, heightened conflict, deepening inequality, increasing global economic uncertainty, and fragmentation, as well as climate emergency.
“In the face of this challenging political and socio-economic environment, we underscored our belief in multilateral cooperation to collectively address shared challenges.”
It is clear that despite the current global turmoil, the EU remains a committed partner for South Africa, with many European firms continuing to see South Africa as a gateway to the African continent.
Another key pillar of South Africa’s economic strategy lies within the BRICS (Brazil, Russia, India, China, and South Africa) grouping, expanded to BRICS+ with the addition of other emerging economies.
BRICS represents a growing force in the global economy, accounting for over 40% of the world’s population and a substantial share of global GDP.
South Africa’s position in BRICS provides it with access to emerging market growth and fosters economic collaboration with some of the world’s largest and fastest-growing economies.
The New Development Bank, set up by the original five members, is a prime example of South Africa’s ability to leverage this partnership to enhance infrastructure development, economic diversification, and job creation.
Through the NDB, South Africa has been able to secure funding for large-scale projects in sectors such as water, energy and freight logistics. This, in turn, boosts South Africa’s competitiveness in global markets by improving its infrastructure, reducing operational costs, and positioning it as a regional economic hub.
The AU plays a critical role in shaping South Africa’s economic future, as the continent represents one of the most dynamic regions in the world.
South Africa has long been a leader in promoting intra-African trade and investment, and its involvement in the AfCFTA is seen as key to unlocking the full potential of the African market. The AfCFTA, which officially launched in 2021, aims to create a single market for goods and services across 54 of Africa’s 55 countries, representing a population of over 1.2 billion people and a combined GDP of $ 3.4 trillion.
South Africa’s ability to leverage its strategic partnerships with the EU, BRICS+, and the AU is crucial for its economic future, and will cement its status as a gateway to Africa.
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