The 2024 business calendar kicked off with some familiarity as more than 300 heads of state and government leaders, 1 600 captains of industry and members of the media, academia, and civil society descended upon the snowy slopes of the Swiss Alps to attend the 54th World Economic Forum Annual Meeting (WEF) in Davos in January.

This annual meeting draws business and political leaders from across the world together to discuss pressing matters impacting the global economy and devise solutions to address them.

Set against the theme of “Rebuilding Trust” this year, participants engaged over a week of discussions, seminars and interviews. They delved into topics such as the influence of Artificial Intelligence, climate change and geopolitics and their effects on trade relations, global economic growth and investment opportunities.

South Africa made its presence felt, as it has in previous years, in many of the conversations despite the absence of President Cyril Ramaphosa. The delegation was led by Finance Minister Enoch Godongwana, Minister of Trade and Industry Ebrahim Patel and South African Reserve Bank Governor Lesetja Kganyago.

Supporting them was a group of CEOs, including Phuthi Mahanyele-Dabengwa of Naspers, Dr Nombasa Tsengwa of Exxaro, Nedbank’s Mike Brown and Old Mutual CEO Iain Williamson.

Collaboration between government and business strengthens

Reflecting on WEF, Williamson expressed his optimism about the eagerness and determination between businesses and governments in addressing pressing issues.

"There was a definite positive and encouraging sentiment towards South Africa from the business community in terms of readiness to align efforts through public-private partnerships to tackle energy, logistics and crime to achieve the positive multiplier effect towards economic activity, confidence and sentiment," said Williamson, reflecting post-WEF 2024.

He also warned that a failure by the country to present a credible plan to address crime and other key risks “could lead investors to withdraw their support”.

“We cannot afford to lose the international goodwill that we currently have due to lack of progress," he added.

Sharing similar views with Williamson, Chairman of Bidvest Bonang Mohale added that the partnerships between South African businesses and government will continue to play an essential role in ensuring economic growth, improvement of ethical leadership, good governance and the effectiveness of law and order in the country.

"South Africa must be a competitive economy regardless of the outcome of the elections this year. We need to create jobs and prioritise sustainable transformation," said Mohale, reflecting on South African politics along with countries that are home to almost half the world's population heading to the polls this year. These include Mexico, the United States, Russia, Taiwan and the United Kingdom.

The spotlight on trade and logistics

Inefficiencies in the country's freight rail logistics and ports remain a concern and were highlighted at the event for impacting trade activity.

However, CEO of Exxaro Nombasa Tsengwa noted some progress in sourcing alternative solutions and capital to address logistical challenges. "The situation hasn't worsened; we've seen progress from government and Transnet in implementing a turnaround plan," Tsengwa explained, citing new financial and governance plans and a technical audit of Transnet's operations.

In turn, Wamkele Mene, Secretary General of the Africa Continental Free Trade Area (AfCFTA) at the AU, outlined progress towards a fully integrated single market through AfCFTA.

South Africa, one of 47 African states to ratify the agreement, anticipates increased trade with peers across the continent, supported by advancements in digital payments and tariff discounts.

The World Bank estimates the accord could boost regional trade by 80% to $532 billion, or R280 billion by 2035. From a government perspective, Minister Patel emphasised South Africa's enhanced competitiveness in the region through AfTCA participation, facilitating global trade.

Pressure points weighing on SA

Loadshedding proved a continued concern for South Africa's energy-reform drive, and with a new Eskom CEO starting in March 2024, Minister Godongwana highlighted an 18-month plan to tackle power cuts. South Africa, he said, sees the energy challenge as an opportunity for international investment in alternative energy projects.

Geopolitical tensions in the Middle East also continue to challenge South Africa, weighing in on inflation. Kganyago therefore said he expected no immediate interest rate cut and projected a 2.4% GDP growth for 2024.

Despite the country’s challenges, South Africa's global reception at WEF was cautiously optimistic, with interest in enhanced trade from economies aligned with BRICS+. The confidence and solution-driven thinking shared by South Africa in Davos is likely to translate into future trade and investment opportunities with its international peers.

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