G20 Presidency Lands in Africa for the First Time Will South Africa Secure Fairer Energy Deals?

South Africa took over the G20 presidency on December 1, 2024, marking a historic first as the summit is set to be hosted on African soil in November 2025.

Under the theme “Fostering Solidarity, Equality, and Sustainable Development,” South Africa aims to tackle global challenges while prioritizing Africa’s development.

However, this ambitious goal faces obstacles, including geopolitical tensions and domestic economic struggles.

Speaking at the World Economic Forum in Davos, President Cyril Ramaphosa emphasized South Africa’s commitment to shaping global economic policies through the G20.

Positioned between Brazil’s outgoing presidency and the United States’ upcoming leadership, South Africa plays a crucial role in bridging developed and emerging economies.

Key priorities for South Africa’s presidency include addressing poverty, unemployment, and inequality, promoting sustainable development, and pushing for reforms in global economic governance.

The African Union’s (AU) recent inclusion as a permanent G20 member provides an opportunity to amplify Africa’s voice on the global stage and advocate for regional economic integration.

However, South Africa faces considerable pressure. A potential return of Donald Trump to the U.S. presidency in 2025 could lead to a shift in U.S. engagement within the G20, complicating efforts to build consensus.

Additionally, South Africa’s influence on the global stage has diminished, particularly with the AU now directly representing the continent in the G20.

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Despite playing a key role in the COVID-19 response and the Ukraine-Russia peace mission, its distinct leadership role is less clear.

Nonetheless, South Africa’s economic relationships span multiple geopolitical blocs, including China, the EU, the U.S., and the UK, positioning it as a potential mediator in global negotiations.

Minister of International Relations and Cooperation, Ronald Lamola, faces the challenge of steering discussions amid rising global tensions.

Beyond diplomacy, South Africa’s presidency is an opportunity to attract foreign direct investment (FDI) by advancing policy reforms and strengthening investor confidence.

The country aims to promote sustainable finance and showcase African innovations, particularly within the social and solidarity economy.

The G20, comprising 19 countries and two regional bodies, represents 85% of global GDP, over 75% of international trade, and about two-thirds of the world’s population.

South Africa’s participation is shaped by its national interests, the broader African agenda, South-South cooperation, and multilateralism.

This presidency comes with only five years left to achieve the UN’s 2030 Sustainable Development Goals (SDGs), with just 12% of targets currently on track.

South Africa hopes to use its leadership to push for accelerated action and meaningful policy shifts.

Ultimately, South Africa’s success as G20 president will depend on its ability to manage geopolitical tensions, address domestic challenges, and effectively champion the interests of both Africa and the Global South.

Building on its successful hosting of the 2023 BRICS Summit, South Africa seeks to cement its role as a trusted middle power, fostering cooperation between the G7 and BRICS nations.