South Africa's assumption of the G20 presidency in December 2024, coinciding with the African Union's (AU) recent induction as a permanent member, marking a transformative period for both the nation and the continent. However, this milestone comes at a time when Africa faces significant economic and geopolitical challenges. Issues such as mounting external debt, political instability in several regions, slow industrialization, and vulnerability to global economic shocks threaten to derail the continent’s progress. Additionally, Africa grapples with the ongoing effects of climate change, food insecurity, and energy deficits, which disproportionately impact its economies and populations.

Despite these hurdles, South Africa’s presidency presents an opportunity to amplify Africa’s voice in global economic and political arenas, influencing international policies in favor of the continent’s development. As the first African country to lead the G20, South Africa's presidency represents a crucial moment for the continent’s economic and political future. If effectively leveraged, this leadership role could help shape policies that foster inclusive growth, fair trade, sustainable development, and deeper integration of African economies into global financial structures.

South Africa’s presidency of the G20 is an opportunity for the continent to push for reforms in global economic governance. Historically, the G20 has been dominated by major economies from North America, Europe, and Asia, often sidelining the concerns of developing regions like Africa. Now, with South Africa at the helm and the AU as a full member, there is a renewed push to integrate African perspectives into the core discussions on trade, climate change, global finance, and peace-building.

President Cyril Ramaphosa has articulated a vision centered on addressing global conflicts, climate change, and food and energy security—challenges that disproportionately affect African nations. By ensuring these topics remain at the forefront of G20 discussions, South Africa aims to influence global policies that align with Africa’s development agenda. However, the country’s diplomatic positioning and internal struggles could impact its ability to lead effectively on the global stage.

The AU's elevation to permanent membership within the G20 signifies a strategic shift from being passive recipients of global economic policies to active shapers of them. This inclusion enhances the legitimacy and representativeness of the G20, ensuring that Africa's unique challenges and opportunities are considered in global decision-making processes. The AU’s membership in the G20 comes after years of advocacy for greater African representation in international institutions, and this development reflects a broader trend of recognizing Africa’s growing economic and political importance.

With this new role, the AU can advocate for debt relief, fair trade policies, and increased investment in African infrastructure. It also provides African leaders with a stronger bargaining position in negotiations with international financial institutions, such as the International Monetary Fund (IMF) and the World Bank. The challenge now is ensuring that Africa speaks with one voice in these global discussions, given the continent's diverse economic and political landscapes.

1.        Processing of Transition Minerals

One of the critical economic initiatives under South Africa's presidency is the push for local processing of transition minerals. Africa is home to some of the world’s most essential minerals for renewable energy technologies, including cobalt, lithium, and rare earth elements. However, these resources are often exported as raw materials without significant value addition.

By advocating for local processing, South Africa aims to stimulate industrialization, create jobs, and retain more economic value within the continent. This approach aligns with the African Continental Free Trade Area (AfCFTA) agreement, which seeks to promote intra-African trade and manufacturing. However, the ambition to process transition minerals locally faces challenges, including the need for substantial infrastructure investment, access to advanced technology, and potential resistance from established global supply chain stakeholders.

2.       Debt Relief and Economic Stability

A major concern for many African economies is the growing burden of external debt. South Africa’s leadership of the G20 presents an opportunity to push for more favorable debt relief mechanisms, particularly for low-income countries that have been severely affected by global economic downturns. The ongoing discussions on reforming global financial institutions and debt restructuring could benefit Africa, provided there is strong advocacy from the AU and its member states.

In addition, Africa remains vulnerable to external economic shocks, including fluctuating commodity prices, inflation, and currency instability. South Africa’s presidency could help steer G20 discussions toward creating more resilient economic frameworks that can shield African economies from these external shocks.

3.       Navigating Global Political Dynamics

The current global political landscape presents both opportunities and complexities for South Africa's G20 leadership. The recent G20 Foreign Ministers' Meeting in Johannesburg highlighted divisions over the Ukraine conflict, with notable absences such as U.S. Secretary of State Marco Rubio, who criticized South Africa's policies as "anti-American."

This geopolitical tension underscores the delicate balancing act that South Africa must perform. As a BRICS member with strong ties to China and Russia, South Africa is often seen as a counterweight to Western influence. However, the country also maintains economic and diplomatic ties with Western nations. This dual positioning allows South Africa to act as a mediator in global conflicts, but it also places it in a precarious situation where it must carefully navigate its alliances.

The Ukraine war remains a divisive issue, with African nations adopting varied stances. Some African leaders support peace talks and diplomatic solutions, while others remain non-aligned. South Africa’s role in the G20 provides an opportunity to advocate for Africa’s position on global security matters, emphasizing peaceful conflict resolution and the protection of African economies from geopolitical disruptions.

4.       Climate Change and Energy Security

Climate change remains a pressing issue for Africa, and South Africa’s presidency of the G20 provides a platform to push for increased climate financing for developing nations. Africa is one of the most vulnerable regions to climate change, facing extreme weather conditions, droughts, and food insecurity. Despite contributing the least to global carbon emissions, African countries bear the brunt of climate-related disasters.

South Africa has called for greater financial commitments from developed nations to support Africa’s transition to renewable energy. However, there is still a lack of consensus among G20 nations on how to finance climate adaptation in Africa. While the European Union and Canada have expressed support for increasing climate aid, other major economies remain hesitant to make binding financial commitments. This remains a contentious issue that South Africa must navigate in its presidency.

Furthermore, the global push for green energy presents both opportunities and challenges for Africa. While Africa has significant renewable energy potential—particularly in solar, wind, and hydropower—investments in green energy infrastructure remain insufficient. South Africa’s leadership in the G20 could help attract more investments into Africa’s renewable energy sector, supporting the continent’s shift toward a sustainable energy future.

With the recent G20 summit in South Africa, there is a renewed emphasis on South-South cooperation. This focus aligns with the AU's Agenda 2063, which envisions an integrated, prosperous, and peaceful Africa. Collaborating with other developing nations within the G20 framework can facilitate knowledge exchange, technological transfer, and collective bargaining power, enhancing Africa's position in global negotiations.

South Africa has historically played a key role in championing the interests of the Global South. Through forums like BRICS and the G20, the country has advocated for more inclusive economic policies that benefit emerging economies. Strengthening alliances with other developing nations within the G20 can amplify Africa’s voice and push for reforms in global trade, finance, and governance.

South Africa's G20 presidency, coupled with the AU's permanent membership, heralds a new chapter for Africa in global governance. However, the challenges facing Africa, including economic instability, climate vulnerability, and political fragmentation, will shape the continent’s ability to fully leverage this opportunity. If successfully managed, South Africa’s G20 presidency could serve as a blueprint for future African leadership in global affairs, setting a precedent for deeper African integration into international decision-making structures. The AU’s permanent membership in the G20 is just the beginning—what comes next will depend on Africa’s ability to assert itself and drive forward a development agenda that benefits all Africans.