Ramaphosa first met with the founder and chairman of the board of trustees of the World Economic Forum (WEF), Klaus Schwab.
President Cyril Ramaphosa started his programme at the WEF’s 55th annual meeting in Davos on Tuesday afternoon, delivering a special address about the economic priorities of South Africa’s government of national unity and outlining the objectives and priorities of the country’s G20 presidency.
“As a leading forum for international economic cooperation, the G20 plays an important role in shaping and strengthening global architecture and governance on major international economic issues.”
Ramaphosa pointed out that the G20 will be held on the African continent for the first time. “This is a moment of great significance for South Africa, the African continent, and the world because humans developed the capacity and the impulse for cooperation in Africa.
“Cooperation has been one of the key markers of human development, touching on many aspects of life, from survival and social organisation to technological and cultural progress, which is what the G20 was established for: to foster cooperation to deal with the challenges the world faces. Cooperation is the bedrock of human civilisation.”
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Cooperation and collaboration are important in G20
He emphasised that without cooperation and collaboration between individuals, groups, peoples, and nations, humanity cannot progress.
“As we confront the challenges of the 21st century—from climate change to pandemics, from poverty to terrorism, from migration to artificial intelligence—we are again called upon to harness that most powerful and that most enduring of human attributes: mutually beneficial cooperation and collaboration.”
Ramaphosa said this is a time of rising geopolitical tensions, unilateralism, nationalism, protectionism, isolationism, and rising debt levels affecting poor countries in the world and a declining sense of common purpose.
“Yet, this is a moment when we should stand together as a global community to resolve the problems that confront humanity by ending the wars and conflicts causing such hardship and misery to many people around the world.
“We are called upon by the exigency of the moment to act together with greater urgency to halt the destruction of our planet.”
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Remembering what Mandela said at WEF 33 years ago
He referred to president Nelson Mandela speaking at the WEF annual meeting 33 years ago when Mandela said: “Our interdependence, bringing us together into a common global home, across the oceans and the continents, demands that we all combine to launch a global offensive for development, prosperity and human survival.”
Ramaphosa said in pursuit of this objective and in giving effect to the mission of the G20, South Africa will focus its G20 presidency on three themes, namely solidarity, equality, and sustainable development.
“We will seek to get the G20 to focus more on how we can enhance solidarity through collective efforts to ensure that in the pursuit of progress for all, no person and no country is left behind. The rights and freedoms of one people cannot be separated from the rights and freedoms of all peoples.”
He said one of the greatest impediments to growth, development, and stability is the persistence of inequality within and between countries. “The pursuit of the UN Sustainable Development Goal on reducing inequality is as much of an economic imperative as it is a social imperative.
“As the G20, we need deliberate and coordinated efforts to focus on inclusive growth based on responsive trade and investment to grow the incomes of poor nations and the poorest in society and to ensure equal access to opportunities, especially for women and young people.
“For nations to flourish, equality and prosperity must be available to everyone—regardless of gender, race, religious beliefs, or economic status.”
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Important to meet needs of present without compromising future
He emphasised that countries must meet the needs of the present without compromising the ability of future generations to meet their own needs. “It is therefore in the interests of all countries to act with greater urgency to reduce global emissions and for industrialised countries to support the climate actions that poorer countries must necessarily take in line with and support of decisions of UN climate change summits.”
Ramaphosa also pointed out that it is simply not fair that over 60% of Special Drawing Rights go to a handful of wealthy countries. “These drawing rights should be redirected to enable countries in Africa and other parts of the Global South to realise their developmental aspirations—to enable them to invest in infrastructure, in industrial development, in education and training, and in health care.”
He said as the world accelerates the transition to low-carbon economies in a just and inclusive way, the damage that climate change already caused and will continue to cause must be recognised. Therefore, he said, South Africa made the strengthening of disaster resilience another priority of its G20 presidency.
“The increasing rate of climate-induced natural disasters is affecting countries that can least afford the costs of recovery and rebuilding. Special financing and insurance mechanisms must be made available to scale up funding for post-disaster reconstruction.
“Since the dawn of the industrial age, the benefits to humanity of economic growth have been achieved at the cost of environmental destruction. If we are to survive and thrive as humanity, we must change this. We must pursue development pathways that reconcile growth with urgent climate action.”
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G20 priority to harness critical minerals
He also said that another priority is to harness critical minerals for inclusive growth and development. “We need a G20 framework on green industrialisation and investments to ensure progress towards a grand bargain that promotes value addition to critical minerals close to the source of extraction.
“We also need the development of low-carbon manufacturing value chains which can support decarbonisation and industrial development. As mineral extraction accelerates to match the needs of the energy transition, the countries and local communities endowed with these resources must be the ones to benefit the most.”
Ramaphosa said South Africa has a rich history of inclusive dialogue and common action. “This cooperative culture and approach were taken to a higher level with the establishment of the government of national unity (GNU) following the elections we held in May last year.
“The GNU has been vital to stability and inclusive governance and contributed to greater interest among investors in South Africa’s economic prospects.”
