Audiovisual/G20
 
Lutfiyya Dean (center), head of the South African delegation at Youth 20, stands with representatives from South Africa and the African Union at the Youth 20 Summit, where they discussed a transformative agenda for the G20 under South Africa's presidency.

By Mkhululi Chimoio
UNITED NATIONS, Dec 3 2024 (IPS)

In 2025, South Africa will assume the presidency of the G20, a pivotal moment in the African country’s international diplomatic efforts.

The Group of Twenty (G20), is an intergovernmental economic forum comprising 19 countries and two regional unions – the European Union (EU), and recently the African Union (AU). It represents 85 per cent of the global economy, 75 per cent of world trade and 67 per cent of the global population.

South Africa’s leadership of this group therefore presents a unique opportunity to shape global policies and advocate for Africa’s interests on the world stage. The G20 countries include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK and US, as well as the EU and AU.

Chrispin Phiri, the spokesperson for the Minister of International Relations and Cooperation, says the theme for South Africa’s presidency will be “Fostering Solidarity, Equality, and Sustainable Development.” It seeks to address critical global challenges, with a strong focus on Africa’s development.

Among the key areas the presidency will focus on include addressing the triple challenges of poverty, unemployment, and inequality; as well as Africa’s development which entails placing Africa’s development at the forefront in alignment with the African Union’s Agenda 2063, ‘The Africa We Want’.

Also expected to form part of the South African priorities is tackling poly-crises such as climate change, energy, food security, and debt that disproportionately affects Africa and other developing nations. Issues of infrastructure development and global governance reform initiated by previous G20 presidencies.

Phiri says South Africa’s foreign policy is deeply intertwined with its domestic priorities, and aims to foster a better, stable, and prosperous South Africa, Southern African Development Community (SADC) region, and Africa.

“South Africa’s presidency is poised to have significant implications for the broader African region, particularly within the SADC. The nation’s strategic position within the G20 will enable it to lobby for policy gains that benefit South Africa, the SADC, and the entire continent, in which key areas of focus include promoting policies that ensure economic benefits for all South Africans, particularly the economically marginalized, for economic benefits,” said Phiri.

Phiri highlighted the importance of South Africa’s coordination with the African Union (AU), particularly in leveraging the G20 presidency to advance regional integration and cooperation.

As G20 president, South Africa will also focus on addressing global economic challenges and promoting sustainable development. The nation’s policy agenda will be informed by its National Development Plan, Agenda 2063, and long-standing issues within the G20 framework.

Phiri said South Africa will advocate for reforming the global debt architecture to prevent debt crises from undermining the realisation of Sustainable Development Goals (SDGs); and also mobilise financing to address the substantial development financing gap, which has increased post-COVID-19; as well as address the issue of (Illegal Financial Flows) IFFs, which drain approximately $88.6 billion annually from the continent, impeding progress toward Agenda 2063 and SDG targets will be key.

Professor Danny Bradlow, a Senior Research Fellow at the Centre for Advancement of Scholarship at the University of Pretoria, says South Africa’s priorities should include addressing debt and development financing, particularly for Africa.

Prof Bradlow wants South Africa to co-chair the Global Sovereign Debt Roundtable alongside the IMF and the World Bank. The forum offers an opportunity to push for a more creative approach to managing debt, linking it to broader discussions on development and climate finance.

“This presidency provides an opportunity to address some longstanding bottlenecks facing regional integration in Africa. For instance, one of the key challenges faced by the African Continental Free Trade Area (AfCFTA) and Regional Economic Communities (RECs) are bilateral trade agreements that undermine Africa’s regional integration efforts,” says Prof. Bradlow.

He urged South Africa to use the momentum of the AU admission and its G20 presidency to highlight these and push for commitments that support regional integration, in close coordination with the relevant AU organs and knowledge partners.

Prof. Bradlow notes the need for South Africa to inherit and advance initiatives from Brazil’s G20 presidency, such as the Hunger and Poverty Alliance and discussions on global taxation, particularly the contentious issue of a wealth tax on billionaires. He acknowledges that, while these are complex issues involving questions of sovereignty, they are crucial for generating resources for development finance.

On her part, the CEO of the South African Institute of International Affairs (SAIIA), Elizabeth Sidiropoulos, stressed the importance of enhancing regional cooperation and integration.

“From a policy vantage point, South Africa’s G20 Presidency seeks to respond to global economic and environmental challenges and sustainable peace, bearing in mind efforts to achieve the SDGs, the AU’s Agenda 2063, as well as reforming institutions of global economic governance,” said Sidiropoulos.

She pointed out that with the AU now being a member of the G20, there is a greater opportunity to amplify African priorities, and suggested that South Africa should focus on deepening the continent’s advocacy within the G20, selecting key issues where it can make a significant impact.

She recommended that South Africa use its presidency to address longstanding bottlenecks facing regional integration in Africa

South Africa’s presidency of the G20 in 2025 is a pivotal moment for the nation and the continent. With the AU’s recent inclusion in the G20, there is a historic opportunity to reshape global governance in a way that reflects the aspirations and challenges of the Global South.

Prof. Bradlow says South Africa’s success will depend on its ability to balance immediate priorities with long-term global goals and ensuring that the G20 remains a platform for inclusive and equitable growth.

Source: Africa Renewal, United Nations.

IPS UN Bureau

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Michelle Mokone (Left) & Morongwe Mokone (right). Credit: UN magazine
 
Two entrepreneurs take traditional African designs and sustainable materials and turn them into international success.

By Mkhululi Chimoio
UNITED NATIONS, Jul 16 2024 (IPS)

What started as a pastime desire to sell crafts at local markets, deeply rooted in the South African culture, has since blossomed to become an international business entity for two local women.

It took the Mokone sisters, Morongwe “Mo” (37) and Michelle (34), three years only to turn around their home decor business into an international business venture by leveraging on the African Growth and Opportunity Act (AGOA).

AGOA allows entrepreneurs from Africa duty-free access to the US market. Approved by the US Congress in May 2000, the legislation sought to help improve the economies of these sub-Saharan African countries, as well as to improve economic relations between the US and participating countries on the African continent.

Africa Renewal* caught up with the two Mokone sisters who are beneficiaries of AGOA to hear how the initiative has changed their lives.

Morongwe and Michelle were raised in Mabopane, Pretoria. In 2016, they started their business ‘Mo’s Crib’ that produces hand-woven baskets, place mats, trays, and other homeware accessories, and selling them in at a local market. In 2019, they decided to pursue the business full-time.

Since then, their business has grown and currently has 12 full-time and 86 part-time employees.

Mo’s Crib uses African traditional designs and sustainable materials to make high-end decorative and homeware pieces inspired by nature. Their arty designs simple, yet modern and sophisticated, with many of their products having multiple purposes that prioritize functionality.

Mo’s Crib uses African traditional designs and sustainable materials to make high-end decorative and homeware pieces inspired by nature.

Most importantly, the business values sustainability – emphasizing on reusing, recycling and reducing waste, as well as using local talent and material to create employment opportunities. From their locally-sourced impala palm leaves to the material of their shipping boxes – the Mokone sisters promote sustainability and a greener society.

“Our business is deeply linked to our upbringing in South Africa, we draw inspiration from the African culture, nature, and our commitment to the local community,” Michelle told Africa Renewal.

Michelle, who is Mo’s Crib director of operations and supply chain added: “We transitioned our craft into entrepreneurship when we noticed the increased demand of our products at local markets. It was the passion for art and the desire to make a positive impact that propelled us to where we are today. We also saw an opportunity in retail as we wanted our products to be accessible, so we decided to partner with retailers to increase sales volumes and sell in bulk.”

The two sisters quit their jobs: Morongwe was an executive HR specialist while Michelle worked as an agricultural economist, to follow their dream and both credit their father, who was an entrepreneur himself, for the inspiration.

“Our father was an entrepreneur himself. Our drive to build a business of this kind with a sustainable imprint stem from our commitment to creating sustainable and ethical products. We are motivated by the opportunity to provide economic and educational opportunities to our employees whom we refer to as our team members, while at the same time promoting environmentally conscious practices. Our dedication to sustainability and empowering local communities has been the driving force behind our business,” said Michelle.

She explained how they finally made a breakthrough into the international market.

“In 2019, Mo’s Crib made its debut in international markets in France and the USA. It was an opportunity for Africa to showcase its products, promoting sustainable practices and potentially opening new revenue streams for the continent. Our breakthrough demonstrates that Africa can contribute to the global market while preserving its cultural heritage and promoting environmentally friendly products,” said Michelle.

She added: “We are still doing well in the local markets, but we always wanted that international breakthrough. AGOA provided us that platform. As it is, we are no longer just selling to local markets in Pretoria, Johannesburg or in South Africa alone; we are literally reaching the US and international platforms.”

Highlighting that through local businesses like Mo’s Cribs, age-old African crafts are given new life, and in doing so, preserve their heritage, Michelle, however, is urging businesswomen to carefully identify products that resonate with the international market.

“To benefit from AGOA, one must identify products that are in demand in the US and establish sustainable distribution channels. They must also partner with knowledgeable forwarding agents to maximize AGOA benefits,” she said.

“Since 2021, we have shipped a total of eight containers to the US. We are on track to ship two more containers soon. We also regularly ship a container to fulfill our orders for our online store, which is fulfilled through our warehouse in New Jersey, US.

“Although shipping is relatively expensive, especially for a small business that is 100% self-funded, we have benefited from the AGOA through significant market access. Currently, US orders constitute 60% of our overall revenue,” she added.

Mos Crib Products

AGOA renewal

According to South Africa’s minister of Trade, Industry and Competition, Ebrahim Patel, the US recently reached a preliminary 10-year agreement with African countries to extend their preferential trade access by another decade, pending approval by Congress.

“We reached a broad agreement on the need to extend AGOA for another 10 years,” Mr. Patel told a business forum in Johannesburg recently, adding that they were able to engage with policymakers from more than 30 sub-Saharan African countries and the US to enable African countries to continue exporting goods to the American market duty-free.

South Africa hosted the 20th AGOA Forum in Johannesburg from in November 2023 where Mr. Patel said South Africa was seeking to renew its AGOA membership which he said has been instrumental in improving the livelihoods of many entrepreneurs in the country.

The forum brought together over 5,000 participants comprising African ministers of trade, senior government officials, the US government delegation led by US Trade Representative (USTR) Ambassador Katherine Tai, US Congressional staffers, the private sector, the civil society, exhibitors in the ‘Made in Africa’ exhibition, procurers and investors.

“AGOA has helped South Africa and other sub-Saharan countries progressively. It has played a pivotal role in job creation in South Africa and the entire region,” he added.

At the same time, South Africa’s ministry of Small Business Development spokesperson, Cornelius Monama, said AGOA presents a great opportunity to promote emerging entrepreneurs and Small and Medium-sized Enterprises (SMMEs).

Trade under AGOA accounted for approximately 21% of South Africa’s total exports to the US in 2022. South African exports to the US under AGOA increased in value from US$2.0 billion in 2021 to US$3.0 billion in 2022,” he said.

Meanwhile, for Morongwe and Michelle, they are working on creating more opportunities and make a meaningful impact in their society. In addition to safeguarding the natural environment, the Mokone sisters are also committed to empowering the people in their community.

“We would like to grow our footprint beyond the USA. We want to enter new markets such as Europe and the United Arab Emirates. We plan to create 20 new jobs within the next two to three years,” concludes Michelle.

Source: Africa Renewal* which is published by the UN’s Department of Global Communications (DGC).

IPS UN Bureau