Diplomatic Inside
As the World Economic Forum (WEF) Annual Meeting looms, Minister of Trade, Industry, and Competition, Parks Tau, emphasized South Africa’s determination to showcase progress and resilience on the global stage. Addressing the media after a pre-WEF breakfast briefing on Thursday in Johannesburg, Tau said the event would highlight how the nation is addressing its economic challenges.
In his opening address at The Pre-Wef Breakfast Briefing Session, The Minister of Finance, Mr Enoch Godongwana said: “This year’s WEF is particularly significant for South Africa. For the first time in many years, the President of the Republic, His Excellency Cyril Ramaphosa, will lead the South African delegation. This presents a golden opportunity to not only strengthen South Africa’s visibility on the world stage, but to also profile our G20 Presidency. Under the theme of Solidarity, Equality, and Sustainability, our G20 Presidency reflects the essence of South Africa’s vision for global leadership.”
Journalists at the breakfast briefing session, raised questions about the tangible returns of Davos engagements, given South Africa’s economic challenges. In response, South African business leaders attending WEF in Davos have highlighted a renewed sense of optimism and progress in their discussions on the country’s economic prospects.
Standard Bank Group Chairperson Nonkululeko Nyembezi-Heita emphasized the critical alignment between government and business, stating, “The breakfast session with government emphasised the importance of the alignment between government and business…We also stress the fact that it’s not just for government to put across messaging about the country. The business community has got a singular responsibility in this regard because we are talking to our business counterparts, talking the language they understand, telling them how we see our country evolving in our continent over the future…” Nyembezi-Heita acknowledged the challenges still facing the nation but noted visible growth. “We haven’t solved every single problem. We still have unemployment that is unacceptably high, but I think Team South Africa is striding on a far, far further footing this time around than we did this time last year,” she said.
Discovery CEO Adrian Gore echoed this sentiment, describing a pivotal moment for the country. “There is an unequivocal feeling that this is different. The country is at, hopefully, a point of inflection,” he said. Gore pointed to the collaboration between government and business as a “fundamentally powerful construct,” adding, “The ability to illustrate execution and delivery, and the change of optimism and narrative, is fundamental.” Addressing skepticism about the economy, Gore acknowledged that while immediate growth might not be evident, “There’s an unequivocal change in the direction of the country and the sense of what we can achieve. We have to concede there are bumps in the road, but there’s confidence in that.”
Nedbank CEO Jason Quinn highlighted the role of public-private partnerships in fostering growth, saying, “Cautious optimism emerges from a better conviction around public-private partnerships in infrastructure, which will also create jobs. The inflation environment is under control, and the prospect for interest rates to moderate even further should add to consumer confidence.”
FirstRand Group CEO Mary Vilakazi expressed optimism about the progress of economic reforms, stating, “What’s encouraging for me is just to see that we are aligned on the fact that delivery on what we have promised is actually what’s going to also result in a shift in how South Africa is positioned. The partnership and collaboration with government is not a place we’ve been in for many years, and it should continue to be a source of pride for South Africa.” Reflecting on the country’s economic trajectory, Vilakazi noted, “The current GDP growth of 1.2% can uplift to 3% if we execute.”
Parks Tau, representing the government’s perspective, underlined the significance of business optimism. “Optimism from business is an indicator of what could potentially happen in the economy. Decisions about investments are made in these boardrooms, and we are seeing that there is hope for this country and therefore a commitment to grow the economy of this country.,” he said. The WEF, commencing Monday in Davos, Switzerland, will conclude on Friday and features key engagements between government and business leaders. South Africa’s delegation includes top business executives and government representatives aiming to bolster investment confidence for South Africa.
