The G20 and African Development

The paper argues that African development should be central to G20 objectives to enhance the forum's legitimacy and global economic rebalancing. It identifies key growth pillars for Africa—including infrastructure, private investment, human resource development, and trade—and suggests that the G20 can add value by focusing on 'beyond aid' issues. The authors recommend that the G20 establish permanent seats for Africa, create a high-level panel on sustainable infrastructure, and promote knowledge exchange platforms to share successful policy tools from emerging market economies. Case studies on South African outward FDI and Special Economic Zones (SEZs) illustrate potential pathways for diversifying investment and industrialization.

• Infrastructure deficits in Sub-Saharan Africa significantly hinder economic growth, with the Africa Infrastructure Country Diagnostic finding that poor infrastructure cuts national economic growth by 2 percentage points annually and reduces business productivity by up to 40%.
• The G20's core economic policies have direct impacts on African incomes; for example, a reversal of G20 fiscal stimulus packages could reduce African GDP by 2.5%, while a 10% appreciation of the Chinese renminbi could increase African GDP by 0.25%.
• Climate finance and technology transfer represent significant opportunities for African growth, with one modelling study suggesting a 'Copenhagen deal' could improve African incomes by 6%.
• African countries face severe trade constraints due to high intra-regional transport costs and non-tariff barriers, with existing transport systems often designed under colonial rule to move resources to ports rather than facilitate cross-border trade.
• South African outward foreign direct investment (FDI) in Africa is increasingly diversified into network services like telecommunications, finance, and energy, moving beyond traditional resource extraction and expanding from Southern Africa into West Africa, particularly Nigeria.
• Special Economic Zones (SEZs) can be effective tools for industrialization and diversifying exports if they are integrated into a broader economic strategy that includes human capital development and local economy linkages, as seen in the experiences of China, India, and Mauritius.
• The G20 lacks a combined strategy for Africa, and current consultations with African representatives (such as the AU and NEPAD) are conducted on an ad hoc basis, undermining the forum's legitimacy.
• Financial regulation reforms, specifically those under Basle III, may negatively impact Africa by increasing risk weights and reducing international lending, potentially lowering African incomes by approximately 1.5%.

APA

Draper, P., Grant, C., Kingombe, C., & Velde, D. W. T. (2011). The G20 and African Development. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2011/03/G20-and-African-Development.pdf

Chicago

Draper, Peter, Catherine Grant, Christian Kingombe, and Dirk Willem te Velde. The G20 and African Development. South African Institute of International Affairs, 2011. https://saiia.org.za/wp-content/uploads/2011/03/G20-and-African-Development.pdf.

Wikipedia

{{cite report |last1=Draper |first1=Peter |last2=Grant |first2=Catherine |last3=Kingombe |first3=Christian |last4=Velde |first4=Dirk Willem te |title=The G20 and African Development |publisher=South African Institute of International Affairs |date=March 2011 |url=https://saiia.org.za/wp-content/uploads/2011/03/G20-and-African-Development.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{draper2011g20, author = {Draper, Peter and Grant, Catherine and Kingombe, Christian and Velde, Dirk Willem te}, title = {{The G20 and African Development}}, institution = {South African Institute of International Affairs}, year = {2011}, month = mar, url = {https://saiia.org.za/wp-content/uploads/2011/03/G20-and-African-Development.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }