Thought Leadership

BLSA CEO’s Weekly Newsletter – Ministers and business leaders deliver a positive message at Davos

26/01/2025 | By Busiswe Mavuso

• At the WEF this year, Team SA could talk directly about what we have achieved and how we can do more, whereas a year ago our message was about potential.
• President Cyril Ramaphosa delivered one of the week’s most notable speeches, emphasising our commitment to sustainable development and inclusive growth.
• Following the WEF, there is positive global momentum for SA’s hosting of the G20 and we have the opportunity to translate that into durable partnerships with the rest of the world.

Last week was a very positive one for Team SA. The business and government delegation at the World Economic Forum did the country proud and encountered a transformed outlook for South Africa. Compared to a year ago, when we had the elections on the horizon and were mired in load shedding, the sentiment has shifted dramatically. There was real interest in hearing what SA had to say.

We could talk directly about what we have achieved and how we can do more, whereas a year ago our message was about potential. We talked boldly about an ambition to deliver 3% growth this year, and people were listening and taking note. It wasn’t just the message from Team SA – global fund managers and banks were also highlighting South Africa as one of the countries to watch in the year ahead. Ministers and business leaders worked side-by-side to deliver a clear message that South Africa is back in business and is offering opportunities.

President Cyril Ramaphosa delivered one of the week’s most notable speeches, emphasising our commitment to sustainable development and inclusive growth. He highlighted reforms to improve the business environment and attract investors including policy certainty and fiscal development. He emphasised investment in infrastructure and how the public and private sectors are working together to deliver, with many opportunities for investors to back public-private partnership projects. He talked of South Africa’s role as a gateway for investment into Africa, with the African Continental Free Trade Agreement creating extensive opportunity.

The ministers and deputy ministers sat on panels throughout the event, articulating a clear and coherent narrative that our businesses could reinforce. South Africa is well on its way to solving its structural challenges, we’ve proved that we are making progress, and now is the time to back the opportunities. Parks Tau talked up community-driven innovation, Blade Nzimande promoted skills in the digital age, John Steenhuisen discussed food security while boosting growth. Finance minister Enoch Godongwana emphasised ongoing growth-enhancing reforms, noting that ratings upgrades will follow. Those trying to detect cracks in the government of national unity found none.

Our hosting of the G20 and B20 this year gave added prominence to our role in Switzerland. It became clear to me that South Africa has a once-in-a-generation opportunity to put key policy issues that affect the Global South on the international agenda through the G20, such as climate adaptation. We also have the opportunity to share the unique model we have developed for how a government and business sector can advance the developmental agenda in a country. We have established a brilliant template for how the public and private sectors can work together, which can be useful to the world.

We now have a clear vision of what success from our hosting of the G20 will look like. First, we should aim to shift global views on the riskiness of emerging economies and ensure debt sustainability, while ensuring investment flows to drive development. Second, we should be clear about the importance of climate adaptation and the investment needed to ensure the Global South is resilient. Third, we should demonstrate the benefits of close cooperation between business and government, and how together we find solutions. Fourth. we should make sure the world shares our ambition to deliver 3% economic growth this year.

Coming out of the experience I think Team SA has a spring in its step that it can bring back to the country to drive our efforts on the B20 and G20. There is positive global momentum for South Africa’s hosting and its economic outlook, and we have the opportunity to translate that into durable partnerships with the rest of the world.

President Ramaphosa closed his speech with an invitation to all those in Davos to come and visit the “most beautiful country in the world” and immediately received a promise from WEF chairman Klaus Schwab that he would be coming. That was the sentiment across Davos. The world is recognising the progress we’re making in implementing economic reforms, solving the electricity crisis, dealing with corruption and getting logistics right. As the president noted, there aren’t many countries in the world where there is long-term cooperation between business, government and labour, which talks to stability and promise of greater economic growth. The world heard the message.

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BLSA is a business organisation that believes in South Africa’s future and shares the values set out in the Constitution. BLSA is committed to playing its part in creating a South Africa of increasing prosperity for all by harnessing the resources and capabilities of business in partnership with government and civil society to deliver economic growth, transformation and inclusion.