At the Business20 (B20) Conference on Tuesday, business leaders from G20 nations gathered to discuss significant global economic and trade challenges. The B20 platform plays a vital role in shaping global economic policies and encouraging international collaboration.
A key panel discussion, titled "The G20 in 2025, International Organisations, and the Impact on Business," featured Khulekani Mathe, Co-Chair of the B20 South Africa Local Business Advisory Council, as the moderator. The panel included Minister Parks Tau from the Department of Trade, Industry and Competition; Ahunna Eziakonwa, Assistant Secretary-General and Director of UNDP's Regional Bureau for Africa; Renate Hornung-Draus, Vice-President of the International Organisation of Employers (ILO); and John Denton, Secretary General of the International Chamber of Commerce.
Minister Tau emphasized the importance of the G20 being hosted in Africa. He noted that this presents an opportunity to address developmental challenges in the global south, particularly in Africa. Tau pointed out that the African Continental Free Trade Agreement (AfCFTA) serves as a valuable platform for integrating African markets.
He also discussed current challenges in global trade, including issues within the World Trade Organization's dispute resolution system, difficulties in multilateral decision-making, and the rise of protectionism, especially in the global north. Tau stressed that the G20 must engage in resolving these issues to create a more inclusive global trade environment.
Ahunna Eziakonwa highlighted the negative impact of protectionism on Africa, explaining that it reduces opportunities for the continent in global value chains, pushing businesses to focus on regional markets instead. Eziakonwa also pointed out that infrastructure development in Africa cannot proceed without fair access to capital for countries leading these projects.
Renate Hornung-Draus spoke about indirect forms of protectionism, noting that overregulation and legal risks discourage companies from investing or trading internationally. She explained that such regulations force companies to withdraw from certain markets, which harms global trade.
Minister Tau further addressed the increasing debt burden on developing countries and the inequity in the debt environment. He explained that lower credit ratings for economies in the global south lead to higher interest rates, which deepens global inequality. To tackle this issue, Tau proposed establishing a Cost of Capital Commission under South Africa's G20 presidency. The commission would work on identifying and addressing barriers that prevent low- and middle-income countries from accessing affordable capital, aiming to create more equitable access to funding.
Eziakonwa concluded by stressing the importance of regional cooperation and collaboration for achieving shared prosperity and inclusive growth in Africa. She revealed that a study on borrowing costs showed that 16 African countries experienced losses of up to $75 billion due to non-objective credit ratings. Eziakonwa emphasized that addressing the cost of borrowing is essential for the continent's development.
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