Director: ReVive Advisory & Turnaround
From the early 2000s to 2014, South Africa was regarded as the largest economy on the continent. Even today, South Africa is still one of the continent’s top three economies and is Africa’s most diversified economy.
Despite this pedigree, South Africa still suffers from the challenge of keeping pace with trends adopted globally. As South Africa comes under increased scrutiny in 2025 as it holds the G20 presidency, are we adopting beneficial economic policies that will transform South Africa into a global financial hub? I will focus on this in my upcoming editorials.
Advancing the global economic growth narrative
Adopting and championing digital payment methods has long been a focus of the G20. A recently published article by the South African Institute of International Affairs (SAIIA) paints a picture of how this has developed over the years and how South Africa can shape this narrative.
The article points out that, during Saudi Arabia’s presidency, G20 digital economy ministers emphasised the critical role of internet access in achieving global connectivity and economic recovery post-COVID-19. They focused on leveraging digital technologies to enhance resilience against future crises and achieve the UN Sustainable Development Goals (SDGs), highlighting artificial intelligence (AI), smart cities, data security and inclusive growth among key drivers.2 Italy’s presidency saw a focus on the digital transformation of productive activities. Ministers acknowledged the impact of COVID-19 and committed to leveraging AI for micro, small, and medium enterprises (MSMEs), enhancing consumer protection, promoting child safety online and prioritising smart cities, connectivity and digital public services, among others. At this time, the Digital Economy Task Force was transformed into a permanent Digital Economy Working Group.
In 2022, under Indonesia’s presidency, G20 digital economy ministers emphasised international cooperation to enhance digital connectivity, literacy and skills for post-COVID-19 recovery. They discussed data free flow, cross-border data flows, and the importance of digital skills for vulnerable populations and MSMEs, as well as promoting secure, human-centric digital services and digital innovation across sectors.
The article adds that India’s 2023 presidency brought digital public infrastructure (DPI) to the forefront. This G20 digital economy ministers meeting focused on digital innovation, inclusion, skilling and security, emphasising the importance of bridging digital divides and ensuring universal connectivity for sustainable development. Members endorsed the G20 Framework for DPI and promoted digital skills, through the G20 Toolkit for Designing and Introducing Digital Upskilling and Reskilling Programs and committed to advancing an inclusive and secure digital economy.
Brazil’s G20 presidency aimed to continue these efforts. In terms of DPI, Brazil sought to deepen the debate on the components related to digital identity and data governance and provide relevant insights on how DPI can promote digital inclusion. It is noted that, under the Brazilian presidency, financial inclusion for individuals and MSMEs through DPI remained high o the on the agenda.
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The role of South Africa
The SAIIA article points out that, building on the digital advancements championed by previous G20 presidencies, South Africa’s G20 presidency in 2025 offers the promise to integrate both digital and traditional economic priorities, aligning with recent G20 commitments to digital inclusion and financial inclusion. Moreover, South Africa’s G20 presidency, along with its AU membership, offers the opportunity to align G20 initiatives with the AU’s Agenda 2063 goals, amplifying Africa’s voice in global economic governance while promoting sustainable development across the continent. By leveraging these synergies, the 2025 G20 South African presidency can catalyse transformative initiatives that benefit member states, the AU and the broader global community.
Advancing the digital agenda is a low-hanging fruit on which the South African G20 presidency must capitalise. Digitalisation provides an overarching mechanism to ensure sustainable economic development. Advancing universal access to affordable and reliable internet services, particularly in underserved regions and for vulnerable populations, should remain a priority. Digitalisation provides an overarching mechanism to ensure sustainable economic development. Advancing universal access to affordable and reliable internet services, particularly in underserved regions and for vulnerable populations, should remain a priority. Likewise, championing initiatives that bridge the digital divide by promoting digital literacy and skills development for youth and women is a necessity.
Actions for South Africa’s G20 presidency to advance African-driven cross-border payment initiatives
The article adds that, to further G20 DPI initiatives, the South African G20 presidency should prioritise African-driven initiatives, capitalising on and celebrating the AU’s full G20 membership. The AU is actively promoting several initiatives to enhance digital connectivity, foster economic growth and support sustainable development across Africa. Key initiatives include PAPSS, which facilitates seamless cross-border payments to boost intra-African trade, and the AfCFTA Protocol on Digital Trade. The latter establishes harmonised rules, common principles and standards that facilitate and promote digital trade to foster sustainable and inclusive socio-economic growth and drive the continent’s digital economy. The Smart Africa Initiative aims to transform Africa into a single digital market with projects like the One Africa Network and Smart Broadband 2025 to improve internet connectivity. The Digital Transformation Strategy for Africa (2020-2030) provides a comprehensive framework focusing on infrastructure development, digital skills, innovation, governance and cybersecurity.
Additionally, the Programme for Infrastructure Development in Africa (PIDA) and digital identity systems aim to improve connectivity and public service delivery. These efforts reflect the AU’s commitment to using digital infrastructure to drive economic progress and sustainable development across the continent. The South African G20 presidency, therefore, presents an opportunity for the G20 to support the adoption and implementation of African cross-border payment initiatives such as the Pan-African Payment and Settlement System (PAPSS).
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The SAIIA article points out that, by enabling instant payments from one local African currency to another, regional payment systems, such as PAPSS, have the potential to become early exemplars of the G20 Roadmap, demonstrating the high potential to boost growth and trade by making payments faster, cheaper and more transparent. Taking advantage of the momentum generated by the G20 cross-border payments programme, South Africa can use its G20 presidency to advance the adoption and implementation of PAPSS. Cross-border payments are the backbone of international trade, and cross-border trading is high on the AU agenda through the AfCFTA agreement. PAPSS is, therefore, primed to facilitate the expected increased volumes in cross-border payments. The AU, under South Africa’s 2025 presidency, could engage on the FSB and BIS work on cross-border payments within the G20 framework to drive the implementation of PAPSS.
Important focus
It will be interesting to see how this pans out over the year. With shifting global markets and countries looking to diversify their trading partners, we may find that gravitating to this will place South Africa on the map in more ways than one.
