5 minute read
In Other News - Business 20 (B20)
A Global Platform To Promote Economic Growth and Business Integrity
By Jessie Taylor
As global leaders meet for the G20 Summit, the business sector will also have a chance to engage with world leaders through the parallel Business 20 (B20) structure.
The G20 Summit is an annual gathering of the world’s largest economies, including 19 countries and the European Union, to discuss and coordinate policies on global economic and financial stability.
The Business 20 (B20) serves as the official G20 dialogue forum with the global business community. Established in 2010, the B20 is one of the most influential G20 Engagement Groups, bringing together business leaders from G20 member countries and beyond.
A Global Platform
Each year, the B20 provides a platform for companies and business organizations to articulate their perspectives on pressing global economic and trade issues, ensuring that the business community’s voice is heard at the highest levels of international economic governance.
The B20’s mission is to act as a strategic conduit for the global business community, fostering consensus and setting priorities on policies aimed at addressing global economic challenges.
It aims to represent the interests of the business community in the G20 dialogue, facilitate meaningful interaction between the private and public sectors, and deliver impactful, actionable policy recommendations to the G20. Established in 1999, the G20 initially focused on financial matters but has since expanded to cover a broad range of global issues such as trade, climate change, digital transformation, and sustainable development. The summit brings together heads of state, finance ministers, and central bank governors to develop strategies that shape the international economic landscape.
One of the key focuses of the B20 is promoting integrity and compliance in business, which is overseen by the Integrity and Compliance Task Force. This task force is dedicated to enhancing business integrity and fostering transparent governance to build trust, ensure fair practices, and combat corruption in the global economy. The task force has several key objectives, including developing recommendations to combat corruption, promoting open and transparent business practices to build trust among stakeholders, and encouraging the implementation of effective compliance mechanisms within organizations to ensure adherence to ethical standards and regulations.
The Integrity and Compliance Task Force actively engage in discussions related to anticorruption measures, ethical business practices, compliance with regulations, and the promotion of corporate governance that ensures accountability and ethical behaviour within organisations, with the goal of upholding the highest standards of business ethics and conduct.
By addressing these critical areas, the B20’s Integrity and Compliance Task Force aims to create a more transparent, ethical, and sustainable global business environment, aligning with the broader objectives of the G20 to promote economic stability and growth.
Financial Reforms to Address Greylisting
This arm of the B20’s work has special significance to South Africa, as it works towards exiting the Financial Action Task Force (FATF)’s greylist this year.
In February 2023, the FATF placed South Africa on its greylist, indicating deficiencies in the country’s anti-money laundering and counter-terrorist financing (AML/CFT) measures. Since then, South Africa has undertaken significant steps to address these shortcomings, demonstrating a strong commitment to financial integrity and international compliance.
As of February 2025, South Africa has successfully addressed or largely addressed 20 out of the 22 action items outlined in its FATF Action Plan.
However, Two Critical Action Items Remain:
Investigations and Prosecutions: Demonstrating a sustained increase in the investigation and prosecution of serious and complex money laundering cases.
Terrorist Financing: Effectively addressing the full spectrum of terrorist financing activities in alignment with the country’s risk profile.
Addressing these areas is particularly challenging, as they require sustained improvements over successive reporting periods. South African authorities are actively working to meet these requirements, with investigation and prosecution teams collaborating under a prosecutionguided investigation strategy to ensure sustained progress.
The FATF has extended the reporting cycle for these remaining action items, allowing South Africa until June 2025 to demonstrate sufficient progress.
If successful, this timeline positions the country for potential removal from the greylist by October 2025. National Treasury emphasizes that these improvements are crucial for delisting and strengthening the fight against crime and corruption within South Africa.
Why is the G20 Important To South Africa?
South Africa is the only African nation in the G20, providing it with a unique platform to represent the interests of developing nations and the African continent. The country’s participation is crucial for several reasons:
Economic growth and investment: The G20 provides South Africa with direct engagement opportunities with the world’s largest economies, facilitating trade agreements, foreign investment, and economic partnerships that drive growth.
Advancing African interests: As Africa’s sole representative, South Africa advocates for debt relief, infrastructure development, and economic inclusion for African nations, ensuring that global economic policies consider the continent’s unique challenges.
Financial stability and policy coordination: Given the impact of global financial trends on emerging economies, South Africa benefits from policy discussions on monetary stability, inflation control, and international financial regulations, helping the country navigate economic uncertainties.
Sustainable Development and Climate Action: Climate financing, energy transition, and sustainability are key topics at the G20. South Africa uses the platform to secure funding and technical assistance for renewable energy projects, carbon reduction, and climate adaptation strategies.
Job Creation and Digital Transformation: The G20’s focus on innovation, digital inclusion, and employment strategies aligns with South Africa’s need to tackle unemployment and bridge the digital divide, ensuring a more inclusive economy.
By actively participating in the G20, South Africa strengthens its global influence, attracts economic opportunities, and champions policies that foster inclusive and sustainable development both locally and across Africa.
