By Jahanzaib Saqib — SCN NEWS
JOHANNESBURG, South Africa — South Africa opened the first Group of 20 Leaders' Summit ever held on African soil on Saturday, bringing the continent's development priorities to the centre of discussions among major economies as President Cyril Ramaphosa called for stronger international partnerships, increased investment and reforms to address global economic inequality.
The Johannesburg gathering marks a milestone for Africa's participation in international economic governance, with the African Union attending as a permanent G20 member and South Africa using its presidency to advance proposals on infrastructure, industrialisation, debt sustainability and job creation. The summit is being held at the Nasrec Expo Centre under the theme of solidarity, equality and sustainability.
Opening the meeting, Ramaphosa welcomed heads of state and government to what he described as a historic occasion for the continent. He called for cooperation in confronting challenges that extend beyond national borders, emphasizing that sustainable development requires countries to work together despite differences in economic circumstances and political priorities.
The summit represents the culmination of South Africa's year-long G20 presidency, during which ministers, central bank officials and policy specialists have discussed ways to improve international financial arrangements and expand economic opportunities in developing countries. Pretoria has sought to ensure that African priorities are reflected not only in summit statements but also in the work of international institutions responsible for financing, trade and development.
Africa's position within the G20 has strengthened since the African Union became a permanent member at the New Delhi summit in September 2023. The continental organisation now participates alongside individual G20 member states, giving African governments an additional platform to coordinate their positions on issues affecting regional economic growth and global governance.
The African Union has identified international financial reform, agricultural development, industrialisation, energy access and the expansion of regional trade as priorities for its engagement. Its participation provides a mechanism for advancing shared continental positions, although individual African economies continue to face different economic circumstances and development challenges.
On the eve of the summit, Ramaphosa met African heads of state, African Union representatives and regional organisations to reinforce coordination on the continent's development agenda. Their discussions addressed disaster resilience, debt sustainability, financing for a just energy transition and the use of critical mineral resources to support inclusive economic growth.
The leaders also considered initiatives intended to improve trade, investment and infrastructure across Africa. South Africa has promoted the African Union's Agenda 2063 as a strategic framework for long-term development, linking economic integration with industrial capacity, employment and improved living standards.
A major focus of Saturday's discussions is the G20 Compact with Africa, an initiative established during Germany's presidency in 2017 to encourage private investment by supporting economic reforms and improving conditions for business. South Africa and Germany, working with the African Union and the World Bank, convened a high-level event in Johannesburg to strengthen the initiative and launch its next phase.
The renewed Compact with Africa is intended to support investment, economic growth and job creation through closer cooperation between governments, financial institutions and private businesses. Its expansion reflects concern that many African economies continue to face substantial financing gaps despite opportunities in manufacturing, energy, agriculture, digital services and infrastructure.
South African Deputy President Paul Mashatile told participants that the initiative had helped strengthen dialogue between African governments and international investors. He emphasized the importance of expanding participation and maintaining reforms capable of attracting sustainable investment.
The World Bank Group is supporting the Compact's next phase through a multi-donor trust fund intended to assist reform efforts and investment preparation. Germany has committed an initial contribution of 10 million euros, according to South African officials, providing support for work associated with the renewed partnership.
The leaders' declaration adopted on Saturday welcomes the strengthening of the Compact with Africa and recognizes Angola and Zambia as its newest participating countries. It also supports wider partnerships aimed at expanding industrial capacity, technological development and integration into international production networks.
Industrialisation is an important part of Africa's development agenda because many countries export substantial quantities of raw materials while importing higher-value manufactured products. Expanding domestic processing and manufacturing could create employment, develop technical skills and allow producing countries to retain a greater share of the economic value generated from their resources.
South Africa has placed particular emphasis on critical minerals used in renewable energy systems, batteries, electronics and advanced industrial technologies. African countries possess significant mineral resources, but the economic benefits of extraction depend partly on access to investment, infrastructure, technology and markets for processed products.
The G20 agreement acknowledges the importance of supporting industrialisation in Africa and least-developed countries. It calls for stronger integration into global value and supply chains, recognizing that sustainable economic development requires opportunities beyond the export of unprocessed commodities.
Infrastructure financing is another central concern. Reliable electricity, transport corridors, ports, communications networks and water systems are essential for businesses seeking to expand production and trade, yet many African economies face high borrowing costs and limited access to long-term capital.
The African Continental Free Trade Area provides a framework for increasing commerce among African countries and developing larger regional markets. Supporters argue that reducing barriers to regional trade can encourage investment and strengthen supply chains, although implementation depends on infrastructure, customs procedures and the removal of practical obstacles to cross-border business.
South Africa has also used the G20 presidency to highlight the financial constraints facing countries with substantial debt obligations. High debt-service costs can reduce the funds available for healthcare, education, transport and productive investment, making the cost and availability of financing an important part of the continent's development debate.
The African Union has called for improvements to international debt arrangements and greater participation by developing countries in decisions affecting the global financial system. These proposals reflect concerns that existing financing structures do not always respond adequately to the needs of countries facing economic shocks or persistent infrastructure gaps.
The Johannesburg summit provides an opportunity for African governments to present those concerns directly to major creditor economies, multilateral development banks and international financial institutions. However, the adoption of broad commitments does not itself guarantee lower borrowing costs or immediate increases in investment.
The presence of the African Union as a permanent member also gives the continent a more established role in G20 policy discussions. It does not replace national representation or automatically resolve differences among African governments, but it creates an additional forum for coordinating regional priorities and engaging with major economic powers.
South Africa's presidency has promoted the African concept of Ubuntu, emphasizing the interdependence of societies and the importance of cooperation. The approach has informed the summit's agenda on inequality, development financing and the distribution of opportunities arising from economic and technological change.
The historic gathering is taking place without an official delegation from the United States, following a boycott by President Donald Trump's administration. Despite that absence, participating leaders have proceeded with discussions and adopted a declaration addressing economic cooperation, development and international financial challenges.
For South Africa, the summit offers an opportunity to demonstrate that African governments can host and shape discussions at the highest level of global economic diplomacy. Its significance extends beyond the venue to the policies advanced during the presidency and the extent to which those policies influence international cooperation.
The leaders' declaration recognizes the importance of expanding investment partnerships with Africa, strengthening industrial development and supporting countries seeking to participate more effectively in international trade. These commitments provide a framework for further engagement, but implementation will require financing, institutional reforms and sustained cooperation.
As the Johannesburg summit continues, African leaders are seeking to turn greater international representation into practical economic opportunities. The challenge is whether the attention generated by the first G20 summit on African soil can help mobilize investment, create jobs and strengthen the continent's role in shaping the global economy.