South Africa’s hosting of the G20 meetings, including the B20 Summit and the G20 Leaders Forum, at the weekend, showcased the country’s strengths, with smooth logistics, good infrastructure and a deft handling of the complex political and diplomatic processes that had to be followed, business organisation Business Leadership South Africa (BLSA) CEO Busi Mavuso writes in her latest newsletter.

“The resulting G20 Leaders Declaration is a powerful document that sets out a vision and set of actions that tackle several global challenges, and there is much that puts African development on a strong footing,” she highlights.

Mavuso points out that the Leaders Declaration aligns well with the recommendations proffered by the B20 prior to the meeting.

“There is strong commitment to energy and food security for Africa, as well as industrialisation, trade and investment. Importantly, there are legacy initiatives that will aim to deliver on the commitments and intentions outlined in the declaration,” she says.

Mavuso mentions one as the Africa Engagement Framework, which will be supported by South Africa for the next six years.

This was launched by the Finance Ministers and central bank governors in the finance track of the G20 and aims to enable coordinated action across the world’s major economies to support Africa’s development and integration into the global financial system.

The framework will coordinate economic policies, and support financial stability, tax cooperation, infrastructure financing and debt sustainability.

“This is a powerful opportunity to deliver on several B20 recommendations to support investment in Africa. I want to see this accelerate the development of the African Continental Free Trade Agreement, which promises to unlock trillions in economic activity across the continent.

“It must also ensure development finance grows to support infrastructure and productive capacity, with debt priced appropriately for developing economies,” Mavuso recommends.

She emphasises, however, that international credibility requires domestic delivery.

“The positive sentiment we’ve generated through our hosting of the G20 and our credit rating upgrade will only translate into sustained investment if we strengthen the fundamentals that investors scrutinise. Chief among these is the rule of law and the integrity of our criminal justice system,” Mavuso asserts.

She adds that BLSA has prioritised supporting reform of the criminal justice system, owing to the importance of rule of law to investor confidence.

The organisation last week hosted acting Minister of Police Firoz Cachalia and Business Against Crime CEO Graham Wright to discuss the progress being made in combating crime and corruption, Mavuso informs, noting that the engagement was “encouraging”.

Part of the engagement explored how business can support improvements in capacity and integrity.

“Multilateral action, such as the Financial Action Task Force (FATF), has also helped the rehabilitation of our criminal justice system, creating pressure to develop the integrity of our financial sector and ensure it cannot be misused. The FATF is a product of the G20 and the Leaders Declaration recommitted to ensuring the FATF stays abreast of technological development,” Mavuso explains.

The FATF will be undertaking another peer-led review of South Africa, starting next year.

“It is a constant project to improve our criminal justice system and FATF compliance is one element that must guide us. These international standards provide both pressure and support for the domestic reforms we need,” she indicates.

“The G20 and B20 experience demonstrated what South Africa can achieve when we execute with excellence. We brought together government, business and international partners to deliver a world-class event and advance substantive policy outcomes for Africa.

“Now we must apply that same focus and partnership to domestic challenges. Strengthening rule of law, accelerating infrastructure delivery, and maintaining fiscal discipline are not separate from our international positioning – they are the foundation that makes that positioning credible,” Mavuso emphasises.