Business upbeat after WEF meeting in Davos – BLSA

The business community is upbeat after attending the WEF annual meeting in Davos, Switzerland, last week, with BLSA saying that ministers and business leaders delivered a positive message as Team SA could talk directly about what they achieved and how they can do more, while the message a year ago was about potential.

Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), says in her weekly newsletter that President Cyril Ramaphosa delivered one of the week’s most notable speeches, emphasising the country’s commitment to sustainable development and inclusive growth.

She says after the WEF meeting, there is positive global momentum for South Africa’s hosting of the G20 and the country now has the opportunity to translate that into durable partnerships with the rest of the world.

“Last week was a very positive one for Team SA. The business and government delegation at the WEF did the country proud and encountered a transformed outlook for South Africa. Compared to a year ago, when we had the elections on the horizon and were mired in load shedding, the sentiment has shifted dramatically. There was real interest in hearing what SA had to say.

“We talked boldly about an ambition to deliver 3% growth this year and people were listening and taking note. It was not just the message from Team SA – global fund managers and banks were also highlighting South Africa as one of the countries to watch in the year ahead. Ministers and business leaders worked side-by-side to deliver a clear message that South Africa is back in business and is offering opportunities.”

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WEF heard about reforms to improve business environment

She says Ramaphosa highlighted reforms to improve the business environment and attract investors, including policy certainty and fiscal development. “He emphasised investment in infrastructure and how the public and private sectors are working together to deliver, with many opportunities for investors to back public-private partnership projects.

“He talked of South Africa’s role as a gateway for investment into Africa, with the African Continental Free Trade Agreement creating extensive opportunity.”

Mavuso says South Africa’s ministers and deputy ministers sat on panels throughout the event, articulating a clear and coherent narrative that South African businesses could reinforce. “South Africa is well on its way to solving its structural challenges and we proved that we are making progress and now is the time to back the opportunities.

“Parks Tau (trace, industry and competition) talked up community-driven innovation, while Blade Nzimande (science, technology and innovation) promoted skills in the digital age, John Steenhuisen (agriculture) discussed food security while boosting growth.

“Finance minister Enoch Godongwana emphasised ongoing growth-enhancing reforms, noting that ratings upgrades will follow. Those trying to detect cracks in the government of national unity found none.”

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SA hosting G20 and B20 added prominence

Mavuso points out that South Africa hosting the G20 and B20 this year added prominence to the group’s role in Switzerland. “It became clear to me that South Africa has a once-in-a-generation opportunity to put key policy issues that affect the Global South on the international agenda through the G20, such as climate adaptation.

“We also have the opportunity to share the unique model we developed for how a government and business sector can advance the developmental agenda in a country. We established a brilliant template for how the public and private sectors can work together, which can be useful to the world.

“We now have a clear vision of what success from our hosting of the G20 will look like. First, we should aim to shift global views on the riskiness of emerging economies and ensure debt sustainability, while ensuring investment flows to drive development.

“Secondly, we should be clear about the importance of climate adaptation and the investment needed to ensure the Global South is resilient. Thirdly, we should demonstrate the benefits of close cooperation between business and government and how we find solutions together. Fourthly, we should make sure the world shares our ambition to deliver 3% economic growth this year.

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Positive global momentum for SA at WEF

“There is positive global momentum for South Africa’s hosting and its economic outlook and we have the opportunity to translate that into durable partnerships with the rest of the world.”

Mavuso says Ramaphosa closed his speech with an invitation to everyone at Davos to visit the “most beautiful country in the world” and immediately received a promise from WEF chairman Klaus Schwab that he would be coming.

“That was the sentiment across Davos. The world is recognising the progress we are making in implementing economic reforms, solving the electricity crisis, dealing with corruption and getting logistics right.

“As the president noted, there are not many countries in the world where there is long-term cooperation between business, government and labour, which talks to stability and promise of greater economic growth. The world heard the message.”