How South Africa's G20 Presidency transforms infrastructure finance in Africa

IOL News

14 hours ago

President Cyril Ramaphosa said recently that his US counterpart Donald Trump, has agreed that the US should continue playing a key role in the G20.
Image: Supplied/GCIS
IN 2025, South Africa assumed the presidency of the G20, becoming the first sub-Saharan African nation to lead the world's most influential economic forum. This milestone comes at a critical juncture for both the global economy and the African continent.
Against the backdrop of widening inequality, climate instability, and calls for more equitable global governance, South Africa's leadership offers an opportunity to reshape international economic priorities through a lens of inclusivity, resilience, and long-term development.
Under the theme Solidarity, Equality, and Sustainability, South Africa has used its presidency to elevate issues that have long defined the Global South — access to infrastructure finance, food security, digital transformation, and institutional reform.
With the G20 representing 85% of global gross domestic product (GDP), 75% of world trade, and two-thirds of the global population, this platform provides unparalleled leverage to influence how capital flows, how development is financed, and how emerging markets can take a more active role in setting the rules of the global economy.
South Africa has set the tone for a presidency driven not by rhetoric but by results. The presidency includes chairing more than 200 meetings of ministers, officials, and international organisations such as the IMF and World Bank, culminating in a summit of Heads of State and Government.
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These engagements are already shaping discourse on sustainable economic recovery, digital infrastructure, climate resilience, and more equitable access to capital. South Africa has used its platform to champion the unique challenges faced by developing economies, particularly in Africa, while pushing for systemic reforms in global economic governance.
One of the core priorities for South Africa's G20 presidency is expanding access to capital for infrastructure — a pressing concern not only for South Africa but across the African continent. Africa's infrastructure deficit, estimated at more than $100 billion (R1.8 trillion) a year, continues to hinder growth, integration, and competitiveness.
Traditional funding models — reliant on sovereign debt or limited public resources — are insufficient to meet the scale of need. South Africa is advocating for blended finance structures that combine concessional funding from development institutions with private sector investment.
These models help reduce investor risk while crowding in private capital for long-term infrastructure projects in transport, energy, water, and telecommunications.
The G20 Infrastructure Working Group, under South Africa's chairship, is pushing for reforms that make such finance more accessible, transparent, and catalytic. A key focus has been on improving credit enhancement tools, lowering the cost of capital for African countries, and standardising project preparation processes to improve bankability.
South Africa's National Treasury and development finance institutions are leading by example, offering replicable models in renewable energy and logistics.
South Africa's ability to lead on financial innovation is underpinned by the strength of its own financial services sector. Recognised globally for its stability and sophistication, the South African banking system is one of the most advanced in emerging markets. Institutions such as Standard Bank, FirstRand, Absa, and Nedbank operate with robust capital buffers, strong governance, and active engagement in infrastructure finance across the continent.
The Johannesburg Stock Exchange (JSE) remains Africa's most liquid capital market, while the country's insurance and pension sectors collectively manage more than R5trln in assets. Regulatory bodies such as the SA Reserve Bank (SARB) and Financial Sector Conduct Authority (FSCA) ensure prudential oversight in line with global standards.
This mature financial ecosystem positions South Africa not only as a credible G20 partner but also as a financial gateway to Africa. As G20 president, it is championing mechanisms that allow institutional investors to participate more meaningfully in infrastructure development, unlocking a new asset class that delivers both economic and social returns.
Another dimension of the G20 presidency's impact lies in the potential it holds for African entrepreneurship. Across the continent, entrepreneurs are building solutions in clean energy, mobility, fintech, agritech, and logistics — often filling gaps left by public infrastructure.
Yet access to scale-up capital, exposure to global markets, and integration into value chains remain significant barriers.
South Africa's G20 leadership is helping to reposition these innovators as central actors in development. The presidency has promoted inclusive procurement frameworks, G20-backed innovation hubs, and SME-focused financing tools that aim to reduce barriers to entry for African businesses.
Through public-private dialogues and policy discussions, the G20, under South Africa's guidance, is highlighting how local entrepreneurs can be integral to infrastructure rollouts —from smart metering in cities to solar microgrids in rural communities. This signals a shift in how the global economy sees African enterprise, not as recipients of aid but as drivers of innovation, employment, and resilience.
Agriculture, a lifeline for millions across the continent, is another central theme of South Africa's presidency. With shifting climate patterns and increased food insecurity, the G20 is being mobilised to focus on food systems that are both productive and climate-resilient.
South Africa is drawing attention to the dual role its agricultural sector plays — as a food supplier to the region and a testbed for climate-smart technologies. Investments in irrigation, transport logistics, cold chains, and digital platforms for farmers are being showcased as scalable models. The presidency is calling for greater investment in regional food corridors and cross-border agricultural trade to bolster food security.
Beyond finance and development, South Africa's G20 presidency is a call for structural reform. The current architecture of global economic governance — from the IMF to credit rating agencies — remains skewed toward the interests and assumptions of high-income countries. South Africa has been vocal in calling for a more balanced and inclusive system.
Central to this is the push for IMF quota reform, enabling greater voice and vote for African countries. South Africa is also urging the G20 to examine how international institutions assess environmental and social impacts, particularly in the developing world. Reforms could include more localised frameworks, better representation in decision-making, and stronger mandates to support just transitions.
The presidency is facilitating discussions on the division of responsibility between international organisations and member states, with the goal of ensuring that global policies better reflect local realities and development pathways.
The benefits of hosting and leading the G20 are not limited to policy influence. They include tangible economic gains for South Africa itself: increased visibility to global investors, enhanced tourism and conferencing activity, and a sharpened diplomatic presence.
Moreover, the presidency allows South Africa to spotlight its strategic industries —renewables, financial services, agritech, and manufacturing — and secure stronger bilateral and multilateral cooperation. It is also an opportunity to advance regional priorities such as the African Continental Free Trade Area (AfCFTA), digital integration, and cross-border infrastructure development.