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President Cyril Ramaphosa and other heads of state at the recent G20 Summit
South Africa is set to host the Sherpas, Finance, and Central Bank Deputies’ meetings this week, marking a significant moment as the country takes on its year-long presidency of the Group of 20 (G20).
The G20, which includes the world’s largest economies such as China, India, France, Germany, and the United States, previously counted South Africa as the only African member. However, in 2023, this changed with the inclusion of the African Union, broadening the representation of the continent in global economic discussions.
While the meetings are expected to bring global attention to South Africa, they also come with substantial costs. Market analyst Warwick Lucas weighed in on the broader implications of hosting such a major event, particularly in terms of tourism and the reputation of host cities.
He emphasised that, despite the excessive costs for security, logistics, and infrastructure, there are considerable benefits to be reaped.
“It’s quite an expensive event for sure because there’s things like security, logistics, infrastructure. But then, in that case, you must look good. Yes. So, capacity building, make sure your roads are fixed, that the taps do not run dry, etcetera, etcetera, because your, your, your upside is your perception, trade relations, soft power, but you don’t harvest any of that benefit if you look a bit pathetic,” explains Lucas.
Lucas highlighted the importance of maintaining a positive global perception, which could, in turn, enhance trade relations and attract tourism.
He stressed that while the immediate costs may be high, the long-term benefits of hosting the G20 meetings could elevate South Africa’s international standing, presenting opportunities for economic growth and enhanced diplomatic relations.
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