By Lehlohonolo Lehana.
South Africa is set to engage the global community at the upcoming World Economic Forum (WEF) Annual Meeting in Davos, Switzerland.
Switzerland is the host country for the WEF Annual Meeting, and the organization said that more than 350 governmental leaders are expected to participate this year, including 60 heads of state and government with “strong government representation from around the world.”
The meeting theme is “Collaboration for the Intelligent Age.” This year’s meeting is taking place from 20 to 24 January in Davos, Switzerland.
More than 1,600 business leaders, including over 900 of the world’s top CEOs, will also participate; over 120 are “Global Innovators, Tech Pioneers and Unicorns who are transforming industries.”
More than 170 leaders from civil society and the social sector, labor unions, non-governmental organizations, religious and indigenous communities, experts, and heads of the world’s leading universities, research institutions, and think tanks will participate in the meeting.
Trade, industry and competition minister Parks Tau said on Thursday that the mood prior to the annual meeting is “fundamentally different” this year and not only is there optimism within South Africa, the country’s global counterparts are also optimistic about its future.
“We are going into next week in that environment. We have the opportunity to present ourselves for who we are, the opportunities we are able to present, but also the opportunities that are available in our country,” Tau told journalists during a pre-WEF media briefing.
“This theme resonates deeply with South Africa’s aim to use collaboration to harness innovation to address its economic and social challenges, while ensuring that technological advancements are inclusive and equitable,” finance minister Enoch Godongwana said.
He added this year’s meeting was crucial for South Africa as it assumes the G20 presidency under the theme “Solidarity, Equality and Sustainability”, which “reflects the essence of South Africa’s vision for global leadership”.
The chief executive officer of Discovery, Adrian Gore, told journalists that, at last year’s meeting, South Africa’s electricity woes had dominated, and there was also a sense of decline, but the past year had shown that the country had the capacity to turn things around.
Collaboration between government, business and the private sector was producing that shift.
“There is kind of a lag process of how that affects the economy; we have to be patient about that … but I think there is confidence that getting those things right will lead to growth.”
The visit to the WEF this year comes against the backdrop of an economy that contracted by 0.3% in the third quarter of 2024, and only grew by 0.4% over the first three quarters of last year. The unemployment rate is at 32.1% and the poorly functioning rail and ports system is also impeding economic growth.
The focus is growth and jobs, Gore said, adding that Discovery was targeting a 3% economic growth for 2025.
Standard Bank chairperson Nonkululeko Nyembezi said the bank’s economists are estimating a growth of between 1.1% and 1.2% for South Africa in 2024.
“This is an improvement from the prior year where growth was 0.7%, however, investors are not going to be looking at a case for investment in 2024, they’re going to be looking at 2025 and beyond, and there, the story is a lot more positive.”
She added that the International Monetary Fund was also sceptical about South Africa being able to reach this target, however, it is now looking at around a 1.5% to 1.7% growth for the country in 2025.
Mary Vilakazi, chief executive of First Rand Bank, said while there was uncertainty in the global economy, there were opportunities for South Africa to unlock its economic potential.
“We are mindful of the fact that there are challenges, but if we rewind to two years ago, there were challenges and the road ahead looked unclear.”
South Africa’s participation in this year’s World Economic Forum is an important opportunity to demonstrate the country’s resilience, highlight the strides made in tackling critical issues, and position South Africa as an attractive investment hub in the global market.