South Africa’s message at the recent annual World Economic Forum (WEF) meeting in Davos was that it is open for investment and ready to partner with the local and global community to lift its economy to a higher, jobs-rich and more sustainable growth, a statement from the Department of Finance said yesterday.
The South African delegation acknowledged to the WEF that addressing the electricity shortage is “the first and most important step” to unlocking faster economic growth, creating employment, and attracting investment, the department said in a statement.
The WEF’s annual meeting, themed “Cooperation in a Fragmented World”, captured the economic, geopolitical and social challenges currently faced by the globe.
The worldwide energy, food and cost of living crisis, driven by the conflict between Russia and Ukraine, and fast-rising inflation, were among key issues that policy makers and businesspeople grappled with at the event.
Also high on the agenda was the climate crisis and its socio-economic and ecological impact.
Leader of the South African delegation Finance Minister Enoch Godongwana, along with International Relations and Cooperation Minister Naledi Pandor; Trade, Industry and Competition MInister Ebrahim Patel, and Human Settlements Minister Mmamoloko Kubayi took the opportunity of the WEF meeting to engage world leaders in business, government, academia and civil society on these and other South Africa specific issues.
The delegation was accompanied by local business leaders and executives from the country’s top companies and banks, “and together Team South Africa put forward the message of a country with vast potential for investment,” the department said.
The WEF meeting also allowed Africa to highlight the potential of the African Continental Free Trade Area (AfCFTA). The AfCFTA Secretariat and WEF, in a report titled “A New Era for Global Business and Investment in Africa”, said that the single market was projected to grow to 1.7 billion people and $6.7 trillion (R115 trillion) in consumer and business spending by 2030, with the latter set to more than double to around $16bn by 2050.
On climate change, a key event was the launch by the “Coalition of Trade Ministers on Climate,” bringing together over 50 countries, to promote trade and investment that encourages the adoption of goods, services, and technologies that mitigate climate change in developed and developing countries.
South Africa used the gathering to give the world details about reforms in energy, infrastructure development, food security, job creation and the green transition, which the country was implementing, the department said.
“Our society is undergoing rapid transformation, presenting as many challenges as it does opportunities. We must pull together, across borders and political affiliations, to understand and overcome these challenges, and take full advantage of the opportunities,” Godongwana said.
“South Africa is on the road to economic recovery: the world recognises that. We have a long way to go, and the economic outlook is fraught with risks and uncertainties. It will not be easy, but the WEF meeting has shown us that we are not walking alone. Many people still believe in our country. We must believe in ourselves,” said Godongwana.
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