Business is a key partner in addressing global political and economic challenges and one cannot realistically work well without the other. This has become clear over the two-day B20 event and from side events around the lead up to the G20 summit.

The disconnect between political discussions and business views needs to be addressed, particularly as the line between political and economic issues becomes more blurred.

As one commentator said, business is not deterred by “noise”, such as market volatility and unexpected crises. It can make sense of that and manage it. But politics is disruptive and companies can be held hostage to damaging political trends and decisions.

The issue was raised by Mcebisi Jonas, Chair of telecoms company MTN and former deputy minister of finance in South Africa at a side event hosted by media company Semafor.

“Growth and output depend on a strong and dynamic private sector but they also need a strong and dynamic state. One without the other is a dead end,” he said.

The state needs to engage with business and this must be at the level of those who run factories, he said. Ministers and policymakers need a proper sense of where growth is coming from and what is hindering it in order to craft suitable policies for the economy.

He suggested that politicians were often driven by ideology rather than practical considerations of their stakeholders.

A similar sentiment was expressed by Hassanein Hiridjee, CEO of the Axian Group, speaking at the B20 summit. He said government bureaucracy and regulation are holding back progress. “Our populations are waiting for solutions. They are not waiting for problems.”

He said deregulation in the digital economy was propelling growth but in the energy sector, for example, high levels of state ownership are a handbrake on progress.

The need for a consistent regulatory environment

Ralph Mupita, CEO of the MTN Group, emphasised the need for regulatory certainty, to give comfort to those willing to invest billions of dollars into the continent.

“Africa could take a more AU approach to harmonising regulations so people could see the continent has a consistent regulatory environment.”

Speakers emphasised that while the private sector is ready to drive growth, government action is crucial for implementing necessary reforms and creating a conducive environment for investment and sustainable development. 

This includes ensuring that key recommendations contained in the various reports by B20 task forces are taken seriously by governments and mainstreamed into policy.

Well-defined public-private partnerships are critical for Africa to realise the obvious opportunities on the continent and leverage new interest in investment opportunities.  

The B20, policies for a long-term vision

Standard Bank Group CEO Sim Tshabala said the B20 and the G20 have been useful in drawing the attention of international investors to South Africa and to Africa as whole. “A lot of value has already been created for Africa as a result of the business connections made throughout the year.”

He told a briefing that the B20 is not dealing with short-term cycles but long-term issues.

This was backed up fellow task force member, John Denton, Secretary General of the International Chambers of Commerce, who said it is essential to take a long-term view to investing.

“Don’t mistake short-term political turbulence for the underlying direction of travel.”

“One of the big global mega-trends is the shift from a unipolar to a multipolar world, and the growing importance of regional groupings like Africa. That trend will continue. Political cycles, by contrast, come and go.”

Africa’s digital, financial and energy revolution

Hiridjee of Axian Group is excited about the opportunities in Africa. “We are at the intersection of so many revolutions happening in Africa – digital revolution, financial revolution, energy revolution. The financial revolution in particular will change the face of Africa. Mobile wallets are a game changer in financial inclusion.

“In terms of choosing markets to invest in, the number of young people is growing everywhere. In Africa, it is not a matter of which country to invest in. All of them have opportunities and a lot of growth potential.”

Mary Vilikazi, CE of the FirstRand Group, said companies in Africa are stepping in to solve problems whether they be in financial solutions, energy, supply chains and logistics and other sectors. Banks are trying to keep up with fast-paced changes as innovation drives new business growth.

“Resilient informal economies are starting to attract a lot of attention,” she said.

“And payments are no longer a place reserved for banks. Fintechs are mushrooming. As banks, we have to work very hard for our relevance and thank goodness we have the balance sheets to do so.”

Africa’s high levels of entrepreneurship are also attractive to investors. Fred Swaniker, Founder and CEO of Sand Technologies summed it up.

“Entrepreneurs are driven by solving problems. Africa is blessed with problems. You don’t have to be a genius to find an idea in Africa. It is an entrepreneur’s paradise.”

But, he said, creating talent is critical to ensure that Africa’s youth bulge becomes an opportunity, not a challenge. “The youth bulge is a potential opportunity. A population becomes an opportunity when you educate it and give it skills.”