By Lehlohonolo Lehana.
The International Relations Minister Ronald Lamola says the African Development Bank forecasts (AfDB) economic growth to increase by 4% in 2026 despite tariffs.
Lamola said Africa’s projected growth rate will surpass the global average.
Lamola delivered a keynote address at the Black Business Council (BBC) Summit, emphasizing the risks posed by increasing global trade barriers and geopolitical instability. He warned that rising protectionism could stifle growth and exacerbate inflation worldwide.
The BBC is hosting the 2025 Annual Summit under the theme “Socio-Economic Transformation and Inclusive Growth in the context of the Government of National Unity (GNU), G20 Presidency and the Changing Geopolitical Dynamics” on 05 – 06 June 2025.
The Summit aims to create a platform of engagement for business, government, politics and civil society on challenges affecting South Africa.
The BBC represents black professionals, business associations, and chambers, and it advocates for the interests of black business and works to ensure that policies and economic frameworks reflect the inclusive growth agenda.
Despite these challenges, Lamola pointed to Africa’s promising economic outlook, citing the African Development Bank’s (AfDB) projections of 3.9% growth in 2025 and 4% in 2026. Notably, 21 African nations are expected to exceed 5% growth, with four potentially reaching 7%—a critical threshold for poverty reduction.
“Africa’s projected growth rates will surpass the global average,” Lamola declared, crediting domestic reforms and improved macroeconomic management for the continent’s resilience.
Lamola stressed the need for South African businesses—both large and small, black and white—to expand into African markets. He highlighted the government’s commitment to facilitating black business participation in trade missions across the continent and globally.
However, he also raised concerns over illicit financial flows, debt burdens, and high borrowing costs plaguing African economies. According to the AfDB, African nations pay 500% more in interest on international loans compared to multilateral financing options.
With South Africa set to assume the G20 presidency, Lamola urged black businesses to support government efforts in promoting sustainable development, green industrialization, and inclusive supply chains.
As the summit continues, discussions will focus on unemployment, economic diversification, and leveraging Africa’s youthful population—60% of which is under 25—to fuel future growth.
President Cyril Ramaphosa will on Friday, 06 June 2025, address the annual summit Gala and Awards Dinner at the Radisson Hotel & Convention Centre in City of Ekurhuleni.