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Reimagining South Africa's development strategy - CNBC Africa

Published 2 days ago3 minute read

As the Global South stands at a critical juncture, South Africa is positioning itself as a pioneer of inclusive and transformative growth, according to discussions led by the B20 Integrity and Compliance Task Force. The strategic agenda highlights industrialization, robust infrastructure development, and integrative policies as essential pathways toward a more prosperous future for the continent. Mkolisi Mkgoje, co-chair of the B20, underscores the significance of this moment, noting, "Africa remains the world's last $1 trillion growth frontier." Using the African Continental Free Trade Area (AfCFTA) as a fundamental platform, the task force aims to harness intra-African supply chains and ensure policy certainty around the trade agreement's implementation. For Mkgoje, the steps being laid out are not merely ambitious but actionable, requiring robust collaboration between the public and private sectors. The B20 has identified several immediate priorities: establishing measurable progress in infrastructure development, bridging the digital divide, and achieving inclusive energy transitions. These efforts are seen as foundational to transforming Africa into a thriving hub of economic activity. Despite challenges posed by global fragmentation, Mkgoje insists that the growing consensus on reform paves the way for significant advancements. South Africa's potential to capitalize on these opportunities hinges heavily on decisive actions and the strengthening of regional trade corridors. Moreover, the B20 task forces, composed of renowned business leaders from G20 countries, are working on specific policy recommendations across various critical areas, such as trade, finance, and digital infrastructure. The task force is also acutely aware of the need to address industry-specific nuances and utilize Africa's vast natural resources and human capital effectively. While each task force is in the process of formulating recommendations, Mkgoje highlights the importance of carefully designed financial packages to support Africa's unique challenges, including high capital costs. Delving deeper, Mkgoje elaborates on the necessity of fostering SMMEs and supporting women's participation as integral to achieving sustained inclusive growth. These initiatives are part and parcel of creating a financial and trade ecosystem conducive to leveraging Africa's key minerals for export markets, enhanced by strategic investments in energy, logistics, and education. Concerns about governance and compliance remain forefront, particularly regarding South Africa's gray listing. Mkgoje is optimistic, pointing to considerable strides made through public-private partnerships to address load-shedding, transportation logistics, and crime-related challenges. By implementing technologies to scrutinize illicit activities, efforts are well underway to satisfy international compliance standards, potentially leading to a lifted gray listing status by October. The overarching narrative emerging from the B20 is one of optimism and concerted action. With strategic foresight and collaboration, South Africa and the broader African continent are poised to redefine their roles on the global economic stage, making this indeed a 'historic moment' with the potential for profound impact.

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