FROM THE DESK OF THE PRESIDENT

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In the world of today, no country can go it alone

Dear Fellow South African,

Last week, I led a South African delegation to the World Economic Forum (WEF) annual meeting in Davos, Switzerland. Every year in January thousands of leaders from government, business and other sectors gather in this town in the Alps to discuss the state of the global economy.

The South African delegation that arrived in Davos was upbeat, confident that we are overcoming the challenges that we face. Our democracy is thriving. Our energy challenges are now a story of opportunity.

This year, South Africa was invited to present its priorities for its G20 Presidency. In a plenary address and in a separate discussion with business leaders, we outlined our theme for the G20 this year – Solidary, Equality, Sustainable Development – and the focus areas through which we will give meaning to this theme.

We made the point that it is in the interests of all countries, large and small, wealthy and poor, to reduce global inequality. That is why one of our priorities is ensuring debt sustainability for low-income countries. By freeing up funds for debt relief in these countries, they will be in a better position to invest in infrastructure, industrial development, education, health care and other forms of development.

Another focus area, which both reduces poverty and promotes sustainability, is the mobilisation of finance for a just energy transition. Through this, developing economy countries will be able to pursue a low-carbon development path while protecting the interests of affected workers, businesses and communities. Related to this is another focus area: the mobilisation of special financing and insurance to enable vulnerable countries to rebuild after being struck by natural disasters.

The fourth focus area is to harness critical minerals, which are abundant in Africa and other countries of the Global South, to promote inclusive growth and development. We are proposed a G20 framework on ‘green’ industrialisation so that countries endowed with these resources must be the ones that benefit most.

 

We stressed that our themes and priorities are underpinned by the principle of cooperation. Throughout history, human progress has been possible only through collaboration among peoples and countries. We therefore renewed our call for the resolution of global challenges through multilateral actions. We called for inclusive solutions that recognise that the world is more interconnected than ever before.

Cooperation is vital if we are to overcome the existential threat of climate change. Carbon emissions into the atmosphere, global warming and the extreme weather events that it causes do not recognise national boundaries or political systems. Although the poor are most vulnerable, the effects of climate change threaten everyone.

As we saw during the Covid pandemic, the same is true of pandemics and other health emergencies. Conflict in one part of the world impacts on countries in other parts of the world. Trade wars, especially between large economies, weakens the global economy and holds back inclusive growth and development for all.

In the world of today, no country can go it alone. No country can sustain its growth, stability and development without working together with other countries to overcome common problems.

South Africa’s message resonated with the participants in Davos. It was a sentiment shared by many of the business leaders with whom we interacted, as well as with other heads of state and multilateral institutions.

Many of the people we spoke to endorsed South Africa’s G20 priorities. They saw the value of our focus on Africa and the interests of countries with developing economies. They appreciated the importance of reducing inequality within and between countries and the need for new growth paths that are climate-friendly sustainable.

We also noticed a much improved sentiment towards South Africa and the prospects for our economy in the years ahead. They commented on the successful transition from the 6th to the 7th administrations and the formation of the Government of National Unity. They saw this as a sign of stability and a common commitment among parties to inclusive growth, employment and a capable state. They welcomed the far-reaching reforms that are underway in areas such as energy, logistics, telecommunications and water to grow and transform our economy.

The South African delegation left Davos with a sense that there are many leaders in the world that share our vision of an inclusive, just and equal world. And that they are prepared and willing to work with us through our G20 Presidency towards the achievement of such a world.

With best regards,

Cyril Ramaphosa

FROM THE DESK OF THE PRESIDENT

News Centre

Partnership is key to South Africa’s growth and progress

Dear Fellow South African,

As this Administration took office last year, we made a commitment to reach out across society to find solutions to the challenges our country faces.

Since then, we have placed partnership at the centre of our work.

While South Africa has a rich history of dialogue and cooperation, our experience of the COVID-19 pandemic underlined how important collaboration was in saving lives and livelihoods. It showed the value of effective coordination across the state and with other sectors of society.

One of the areas where partnerships within the state have had the greatest impact is in Operation Vulindlela. This initiative has brought together Government departments and public institutions to undertake focused reforms in areas such as energy, logistics, telecommunications and water infrastructure.

We also have structures like the President’s Coordinating Council, which brings together leaders from national, provincial and local governments to deal collectively with common challenges.

In other areas, we have brought the different spheres of Government together with other stakeholders. Last year, we established the Presidential eThekwini Working Group to support the metro in its efforts to restore business confidence and overcome service delivery challenges. Together, the working group has made progress on things such as water supply, tourism infrastructure and law enforcement.

We have seen the value of partnership in our response to the electricity crisis. The progress we have made in reducing the severity of load shedding has been made possible by bringing together Government departments, State-owned companies, business, labour and other social partners. The National Electricity Crisis Committee has played a crucial role in coordinating and focusing the efforts of these many different players.

Another area that is benefiting from such partnerships is in rail and port operations. These are beginning to stabilise and recover lost volumes as a result of efforts to support Transnet’s operational recovery.

An important area of structured cooperation is the partnership between Government and business to unlock impediments to inclusive growth. Though our respective roles and mandates may differ, we are aligned on the need to drive inclusive economic growth and job creation.

Our areas of cooperation have extended beyond immediate economic issues. For example, Government came together with civil society partners on a national strategy to end gender-based violence and femicide. We have worked with various sectors through bodies like the South African National Aids Council and the Human Resource Development Council, using our collective resources and capabilities to promote development.

This week we will attend the annual meeting of the World Economic Forum in Davos, Switzerland, where we will be outlining South Africa’s priorities for its G20 Presidency.

At the centre of our G20 agenda is the promotion of cooperation among G20 and other countries on the most pressing issues facing the world. This cooperation should not only take place at a government-to-government level. It should involve all social formations.

As in previous G20 presidencies, dialogue with civil society and other non-government institutions will be conducted through various engagement groups. These engagement groups cover sectors such as business, labour, civil society, parliamentary bodies and the judiciary. Following the approach of the Brazilian G20 Presidency in 2024, we will be convening a G20 Social Forum. This will bring together representatives of engagement groups and other segments of civil society.

One of the messages we will be taking to Davos is our ongoing commitment to partnerships in pursuit of inclusive growth and sustainable development.

We will present our experiences of cooperation across society in South Africa and encourage greater emphasis on partnerships in international relations. In particular, we will make a call for global companies to partner with governments, entrepreneurs and stakeholders in emerging markets to pursue sustainable and inclusive growth.

As we take our message of partnership and progress to Davos this week, we reaffirm our commitment to work with all social partners in pursuit of inclusive growth that benefits all South Africans and leaves no one behind.

With best regards,

Cyril Ramaphosa

FROM THE DESK OF THE PRESIDENT

News Centre

South Africa’s natural splendour can drive inclusive growth

Dear Fellow South African,

As the festive season makes way for the start of the new year, many South Africans have been returning home from different parts of the country. Some people have been visiting family, while others have been exploring new places.

This is a time of year when we get to appreciate why our country is such an attractive destination for visitors. We are blessed with natural splendour that is an integral part of our national heritage. It is an asset to our economy that every year draws millions of tourists from around the world to our shores.

Over the past week I was in the Western Cape and visited Robben Island, which is one of the country’s major tourism attractions. A leading industry publication recently ranked the Robben Island, alongside Table Mountain and the Kruger National Park, as among the top tourist attractions on the continent.

Beyond the substantial natural resource endowments of our beaches, national parks and biodiversity conservation areas, cultural and heritage tourism is also thriving in South Africa.

We are home to 12 UNESCO World Heritage Sites. These include Robben Island and the Cradle of Humankind in Gauteng, which has among the largest known concentrations of Hominid fossils in the world.

Last year, the World Economic Forum ranked South Africa as Africa’s premier tourism destination. It said this was due to factors such as our business operating environment, information technology and tourism infrastructure and services.

Following a slump in tourism numbers as a result of the COVID-19 pandemic, inbound tourism is on the rise. In 2023, South Africa recorded around 8.5 million international tourist arrivals. These visitors spent over R95 billion.

Domestic tourism is the mainstay of the tourism economy. Between January and July last year, South Africans took over 21 million trips to explore their country.

Our tourism sector has the potential to be even larger than it currently is.

We are scaling up a range of tourism promotion strategies to restore inbound tourism figures to pre-pandemic levels. These strategies include an improved tourism visa regime, streamlining the tour operator license process, increased investment in tourism infrastructure and services, and improving safety and security at tourism sites.

The tourism sector in South Africa employs about 1.5 million people both directly and indirectly. Through the Presidential Employment Stimulus we continue to support job creation by providing work opportunities for young people as tourism monitors in different provinces and supporting tourism-related SMMEs.

Tourism is a growth area for small business development. In line with the global shift towards sustainability, figures from South African Tourism show that increasing numbers of new tourism ventures are centred around sustainable tourism and eco-friendly business practices.

This year we will host the first ever summit of the G20 on African soil. We will use this opportunity to profile and actively promote South Africa as a tourism destination of choice.

According to UN Tourism, the G20 economies represent over 70% of all international tourist arrivals worldwide and 82% of tourism’s global GDP. Just as Brazil did last year during its hosting of the G20 Summit, South Africa will promote the role of tourism in creating jobs and advancing sustainable development in the countries of the Global South.

The Government of National Unity has identified the growth of tourism as a vital part of creating employment. In October last year, the Minister of Tourism released a new White Paper on the Development and Promotion of Tourism in South Africa. This will guide our approach to building a sustainable, competitive and inclusive tourism industry.

By working together as government, business and communities, we can ensure that the natural splendour of our country becomes a driver of economic growth, job creation and shared prosperity.

With best regards,

Cyril Ramaphosa