G20 presidency: Ramaphosa wants ‘investors to empty their pockets’

SA is an ‘oasis’ of peace and democracy and a great attraction for investors, says the president.

South Africa will host the G20 summit next year in a “cost-effective” manner, and it will not be as expensive as other big events in the past, according to President Cyril Ramaphosa.

Addressing the media on Tuesday at parliament for the launch of South Africa’s G20 presidency, the president said SA has been “fortunate” in that it has received offers from other countries and the private sector to help shoulder some of the responsibility for hosting meetings.

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Johannesburg is the official host city of the summit, which will take place in the financial hub in the precinct around the Sandton Convention Centre.

The first meetings under a South African presidency will take place from 9 to 12 December, with a gathering of the G20 countries’ central bank deputies.

Ballpark figure 

International Relations and Cooperation Minister Ronald Lamola earlier confirmed in a written response that the G20 is expected to cost around R691 million, which includes expenses such as accommodation, ground and air transport, and venue facilities.

The biggest expense is R497 million for the Sherpa Track and foreign ministers’ meetings, which will stretch from December this year through to November 2025.

(The Sherpa Track is made up of 15 working groups and two task forces.)

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When asked about the cost of hosting a global event such as the G20, Ramaphosa quipped that Finance Minister Enoch Godongwana would be best placed to answer the question. “But let me rather respond, lest the finance minister makes a commitment that has fiscal consequences.”

According to the president, 230 meetings will take place during South Africa’s term, 130 of which will be held in South Africa.

The United Nations will play host to a number of gatherings in New York and Geneva, as will other “friends of the G20” – most notably Northern Hemisphere countries, Ramaphosa notes.

“We gave a ballpark figure, but because we’re getting so much support, it will be better quantifiable as we go on. In the end, there will be accountability about the total costs.”

Crowding in investment

Ramaphosa is confident that the G20 will give South Africa an opportunity to “put itself forward” as the country it is now “and the one we want”.

“It tells an interesting story … we’re a stable country in a sea of tectonic challenges taking place globally. Here in South Africa is an oasis of peace and democracy and it is a great attraction for investors.

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“The G20 must never be seen as ‘just some conference’ where people come and go. We will be focusing on crowding them [investors] in. We want to empty their pockets so they can invest here and help to create jobs,” a spirited Ramaphosa said.

Critical minerals

In addition to the existing working groups, structures, and engagements, South Africa will also raise the matter of critical minerals extraction during its term as host, the president notes.

Africa has approximately 30% of the world’s critical minerals, such as copper, cobalt and manganese, which are essential for the transition to clean energy.

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“As minerals extraction accelerates to match the needs of the energy transition, it is crucial to ensure that the countries and local communities endowed with such resources are the ones to benefit the most. We will use this G20 to champion the use of critical minerals as an engine for growth and development in Africa,” Ramaphosa says.

Sufficient ‘shock absorbers’

During a question-and-answer session, Ramaphosa was asked if there is concern the US, which will host the G20 summit in 2026, might disrupt the developmental agenda of South Africa and its predecessors Brazil, India and Indonesia.

Analysts and observers have warned that Donald Trump, who officially takes office in January next year, is unlikely to put African countries high on his agenda list during his term as US president. Trump has recently threatened to impose sanctions on Brics countries if they consider creating a new currency or challenge the dollar.

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“What we have found is that the G20 has had to deal with existential issues affecting various parts of the world,” Ramaphosa said.

“I’m least concerned about how our own G20 [agenda] will be diluted … There will be sufficient shock absorbers to enable the G20 to function in a way that will advance the interests of the world.”

Read: Johann Rupert says extension of US pact vital for South Africa

Ramaphosa maintains that South Africa’s bilateral agreements, particularly the African Growth and Opportunities Act (Agoa), are not in danger under the incoming US administration, notwithstanding the country’s stance on the Israel-Palestine matter and “other conflicts”.

“It [Agoa] is mutually beneficial. We benefit and the country that signed up to this also benefits. I don’t think one will cut one’s nose to spite one’s own face,” he said in likely reference to Trump.

Listen/read: How will the US election result affect South Africa?

Invitation to Trump

Ramaphosa confirmed on Tuesday that he extended an invitation to Trump for a state visit to South Africa when he phoned him to congratulate him on his re-election as president.

“Work will ensue to see how best it can be achieved. We expect him to also attend the G20 summit in November next year, as the US is the next host.

“And if he has time – he has a very busy schedule – we hope he can hit some balls on a golf course. We’ll certainly point him in the right direction. We have so many beautiful courses. And possibly he and I can play and talk about global matters.”

Read: South Africa’s G20 Summit: Can golf help tame Trump?

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