Beyond G20: Can SA Inc sustain positive momentum? Prof Raymond Parsons has his say

Professor Raymond Parsons is one of South Africa’s foremost economic thought leaders. Cape Chamber asked him to share his thoughts on the impact of the recent G20 events in South Africa. 

See his full response below.  

The success of the G20 summit was strategically significant for South Africa, providing a major platform to advocate and lobby for South Africa’s and the African continent’s broader socioeconomic goals, as well as to attract foreign investment. The G20 summit reinforced other recent positive financial developments - such as the well-received Medium-Term Budget Policy Statement and the country's removal from the grey list - that have strengthened investment sentiment in South Africa. 

On the financial side, the SARB and National Treasury, in particular, have highlighted the successful delivery of the majority of the finance track’s objectives by addressing debt levels in Africa and reducing the cost of capital, such as through greater transparency in sovereign credit ratings. The G20 leadership declaration, combined with recent fiscal signalling and South Africa’s removal from the FATF grey list, has produced clearer early signals to markets and investors. 

However, these are confidence-building steps - durable gains will require concrete policy implementation, measurable reforms and time for investor due diligence.  

● Because middle powers like South Africa must be strategically flexible while economically focused during a period of greater power competition, successful G20 outcomes have now strengthened its leverage to do so. The G20 leadership declaration, while promising greater multilateral engagement, is nonetheless non-binding, although members can be held accountable for implementation. 

In addition, with the US now assuming the G20 Presidency in 2026, which carries additional political risks, the 2025 outcomes need urgent attention. To maximise and consolidate its potential political, diplomatic and economic benefits, South Africa will therefore require active further lobbying on multilateral and bilateral platforms, both within the G20 and beyond. Concrete mechanisms are needed for implementation, while also monitoring progress undertaken by other countries. These developments have improved early market confidence — as seen in tourism upticks and easing financial conditions — but they are not, on their own, guarantees of large, immediate FDI or durable growth. Ultimately, the obligation rests with South Africa to follow through if many of the anticipated economic benefits are to accrue.  

● A follow-through will also need South Africa to identify what it sees as its most important priorities in a very wide-ranging and comprehensive G20 final declaration. These selective priorities might include energy access, development finance reform, promoting the AfCTA, improved food security, and a rare minerals strategy. What is also clear is the extent to which the B20's incisive role has emphasised the need for the private sector to partner with governments to drive progress toward key G20 outcomes, rather than relying solely on government action.  

● Successfully garnering the benefits of the latest G20 outcome over time will also require that South Africa’s economic and foreign policies are consistently aligned with the country’s domestic efforts to become a preferred investment destination. South Africa is now seeking alternative markets in response to new opportunities created by both the G20 outcomes and a rapidly changing global landscape. So, the overall challenge, therefore, remains for South Africa to be globally competitive in ways that protect or expand market shares. A substantial test will lie in whether government, business and society at large will sustain the momentum needed to ensure lasting change beyond the immediate optics of a very well-organised G20, but our expectations must remain realistic in challenging global circumstances.