The Global Economic Governance (GEG) Africa programme is a policy research and stakeholder engagement programme to strengthen the influence of pro-poor African coalitions at global economic governance fora.
As South Africa’s Finance Minister Malusi Gigaba prepares for his inaugural Medium-Term Budget Policy Statement on 25 October, one issue will weigh heavily on his mind: how to increase government expenditure to further stimulate growth at a time when the government’s fiscal environment remains heavily constrained.
Ratings agencies will again this week consider South Africa’s sovereign credit rating. Ratings agencies have indicated that South Africa’s economic growth needs to be at least 1%, up from the current rate of between 0.5 – 0.9%, in order to off a downgrade to ‘junk’ status. Last month, Minister Pravin Gordhan made some bold claims about infrastructure spending in his mid-term budget speech.
In the final quarter of 2016 South Africa participated in two critical global economic governance summits as the lone continental representative: the 11th G20 summit hosted by China and the 8th BRICS summit hosted by India.
Hot on the heels of the recent G20 Summit in China, the 8th BRICS Summit will be held on 15-16 October 2016 in Goa, India. When South Africa hosted the Summit in 2013, it emphasised that BRICS needed to be relevant to Africa’s development priorities. The ambitious intentions stated in the BRICS Summit Declarations and Action Plans need to translate into actions that deliver tangible outcomes. Therefore, what can the African continent expect to derive from this year’s BRICS Summit?
The 11th G-20 Summit in Hangzhou, China closed earlier this week, focusing on the 'New' Industrial Revolution and technological changes, such as big data, robotics, and cloud computing. Innovation has been China’s key area of interest throughout their G-20 Presidency, dedicating many discussions to how new industries could invigorate the global economy.
On 4-5 September, 2016, G-20 leaders will meet in Hangzhou, China. Global macroeconomic and financial developments traditionally dominate the agenda. The global economy remains mired in the economic doldrums, so this year there will be plenty to discuss. Brexit is likely to add further spice.
Africa’s infrastructure financing deficit, estimated to be $100 billion a year, remains persistently large. The resulting lack of investment in energy, transport and water infrastructure on the continent presents a significant barrier to economic growth and development.