Trudi Makhaya on key takeaways from the G20 Summit

The recent G20 Summit, focused on overcoming the impacts of COVID-19 and restoring economic growth, saw South African President Cyril Ramaphosa advocating for support to address the issue of developing country debt in Africa. Trudi Makhaya, an economic advisor to President Ramaphosa, joined CNBC Africa to unpack the summit and provide insight into South Africa's perspective. Makhaya emphasized the challenges faced by Africa, noting that the continent is experiencing its first recession in a generation. The economic repercussions are not only from internal actions such as lockdowns but also global factors like the slowdown in major economies such as Europe, China, and the US. Makhaya highlighted the importance of debt relief to safeguard the progress made by the continent over the years. She called for an extension of the debt sustainability initiative and advocated for broader debt relief beyond low-income countries. Additionally, Makhaya stressed the significance of access to vaccines and therapeutics for all countries to effectively combat the pandemic, emphasizing the need for vaccines as global public goods. The commitment received at the summit included an extension of the debt sustainability initiative by six months and the development of a framework for debt treatments involving private creditors. Concerning President Trump's outlook on Africa and global recovery efforts, Makhaya mentioned the importance of encouraging G20 countries to focus more on supporting the continent. Despite Trump's 'America first' stance, Makhaya noted that the commitment to debt sustainability and treatment initiatives remained neutral. The discussion also touched on access to vaccines and the challenges in ensuring equal access globally. While mechanisms are being developed, countries may prioritize domestic needs initially, posing a challenge to global distribution. Transitioning to South Africa's investment landscape, Makhaya addressed concerns regarding the implementation of pledges made to the country. She highlighted that a significant portion of the investments are in various stages of execution, with companies like Naspers, Amazon, and Emerald American showcasing their journey from pledge to project launch. Responding to criticisms about the freshness of capital inflows, Makhaya explained the complexity of differentiating between existing commitments and new investments. She emphasized the importance of government's role in accelerating investments and fostering investor confidence in the country's business environment. Overall, Makhaya conveyed a message of cautious optimism regarding the progress in meeting investment pledges and the ongoing efforts to attract foreign direct investment to South Africa.