Australia will play host to the leaders of the Group of 20, a group of major advanced and emerging economies popularly known as the G20 this November. The annual event is expected to chart a new course for the global economy in which Africa plays an increasingly significant role.
The G20 players account for about two-third of the world’s population, 85 percent of global Gross Domestic Product (GDP) and over 75 percent of global trade, according to the G20 website. The meeting, which started in 1999 as a rendezvous for finance ministers and Central Bank Governors of member countries, has over the last few years evolved into a gathering of political and business leaders.
One of the legacies of the G20 is the networked and coordinated approach it takes when dealing with issues that were usually treated in isolation. Such issues include energy, tax, growth, employment, investment, reform of global institutions, infrastructure, corruption and financial regulation. These issues are well represented in the challenges facing Africa and the developing world today.
There are several dimensions of synergy that can be realized when top economies work together, and the success of the G20 proves this. “The G20 introduced trillions of dollars in fiscal stimulus packages worldwide, which saved or created millions of jobs that would otherwise have been destroyed. It also put in place measures to limit the collapse of financial markets and helped maintain consumer and business confidence,” reads a statement on its website.
After helping with the global financial crisis recovery process, the G20 has continued to frame the world’s efforts to restore growth and build the resilience of financial institutions and national economies, a process that is critical to Africa’s economic growth sustenance. Africa has been tipped as the next great story in global economics. With An average growth rate of 6 percent – one of the fastest worldwide, a rapidly democratized political environment and improving mutually beneficial trade relations with Europe, the US and Asia, the potential for an economic boom is not far-fetched. But solving critical socio-economic issues plaguing the continent will likely prove the most critical impact of this summit.
With the G20 now focused on “improving the future of the global economy”, it is expected that discussions surrounding Africa will be inevitable as the continent presents some of the most lucrative economic potentials globally. The continent still provides some of the best yields for foreign investors, while its mobile market presents one of the most profitable for global phone makers including Samsung, Tecno and Blackberry. But to effective harness these potentials, challenges such as power, poverty and infrastructure must be properly tackled. Most of these issues are expected to dominate discussions at the G20 meeting, a two-day event starting Saturday, November 15, 2014.
South Africa, Africa’s second largest economy, is the only African member of the G20, and it is hopeful that its team will represent the interests of the continent and ensure that proceedings in Australia this weekend favour the sustained growth of the region. From infrastructure deficits to climate change, corruption to sustainable leadership, it is hopeful that this year’s engagement will fully represent the needs and challenges of the developing world, of which Africa is the front runner.
By Emmanuel Iruobe
