Assessing the economic impact of South Africa's G20 Summit

South Africa’s hosting of the G20 summit last week has sparked debate over whether the high-profile event will translate into tangible economic gains.

Economists and business analysts are divided, with some seeing limited short-term impact but potential long-term benefits, particularly in strategic positioning and tourism.

Economist Ulrich Joubert warned that immediate effects on markets or investment are unlikely.

“If I look at the immediate economic signals, I don’t think there are any visible results of the G20 being hosted in South Africa at the moment,” he said.

According to Joubert, recent movements in market confidence and the rand’s performance were more influenced by domestic fiscal measures, such as the Medium-Term Budget Policy Statement and a modest improvement in the country’s credit rating, than the summit itself.

He pointed to deep structural challenges that continue to deter investors.

“Until we improve the business environment including labour laws, skills availability, and regulatory certainty, hosting meetings like the G20 will have limited impact on investors coming to South Africa,” Joubert said.

He cited mining regulations and property reforms, such as expropriation without compensation, as factors that create uncertainty for long-term investments.

Dawie Roodt, chief economist at Efficient Group, largely agreed with Joubert about the limited immediate effect on markets but highlighted growing interest from foreign investors.

“Financial markets weakened slightly during the G20, but that was in line with international trends. At the same time, I have spoken to foreign investors and diplomats who are showing more interest in South Africa, particularly in the bond and equity markets,” Roodt said.

However, he stressed that long-term, ‘bricks and mortar’ investments remain scarce, and that South Africa’s domestic infrastructure and local governance must improve to attract serious, sustained investment.

Raymond Parsons, senior lecturer at North-West University Business School, presented a more optimistic long-term view.

“The summit was strategically significant for South Africa. It provided a platform to advocate for the country and Africa’s broader socioeconomic goals, and to attract foreign investment,” he said. Parsons noted that South Africa’s removal from the Financial Action Task Force (FATF) grey list and the positive reception of the Medium-Term Budget Policy Statement have already strengthened market confidence.

He emphasised the G20’s potential to elevate South Africa’s diplomatic and economic leverage.

“Middle powers like South Africa must remain strategically flexible while economically focused. The summit reinforced our ability to engage on key global issues, from debt in Africa to development finance reform,” Parsons said.

He also highlighted the role of the private sector, noting that partnerships with business, not just government, will be crucial to translating summit declarations into tangible outcomes.

Parsons cautioned, however, that the summit alone cannot deliver long-term growth.

“Durable gains will require concrete policy implementation, measurable reforms, and time for investor due diligence,” he said. “The country must align its economic and foreign policies with domestic efforts to create an attractive investment environment. Only then will we see the full benefits.”

On the political front, experts agreed that hosting the summit has enhanced South Africa’s international profile.

Roodt said South Africa “scored political points” by successfully hosting the event, while Parsons highlighted that middle-income economies, like South Africa, can leverage such events to influence multilateral and bilateral negotiations.

Joubert added that the summit’s limited duration and the insular nature of delegates’ engagements mean any immediate economic effect is muted, but it could have longer-term reputational benefits.

Tourism emerged as one of the clear short-term winners. Both Roodt and Joubert noted that the influx of international visitors for the summit has already benefited the sector, a boost that could continue if South Africa leverages its improved profile as a host of global events.

South African Tourism spokesperson Sinethemba Dywili said measurable uplift is already visible.

In October 2025 alone, South Africa recorded 927,426 tourist arrivals — a 32% increase from the previous year. Between January and October 2025, 8.56 million people visited South Africa, up by 1.3 million compared with 2024.

“These numbers show that we have recorded measurable uplift… that coincided with South Africa’s G20 Presidency and summit events,” he said.

Early projections indicate that the G20 lead-up generated more than R1.2 billion in direct tourism revenue, with hospitality and accommodation showing the biggest spikes. A full impact study is under way.

Dywili said the G20 created real investment opportunities. On 5 September 2025, ahead of the G20 Tourism Ministers Meeting, Tourism Minister Patricia de Lille hosted the inaugural G20 Tourism Investment Summit, unveiling eight bankable tourism projects worth nearly R1 billion.

These include: Tokai Manor, Table Mountain National Park; Eye of Menlyn, Tshwane; God’s Window Skywalk, Mpumalanga; Water World Fun Park, Buffalo City; Orpen Kruger Lodge; Groote Schuur Estate Tea Room and Restaurant; Hole in the Wall Resort, Eastern Cape and Skukuza Rest Camp, Kruger National Park.

“These projects deliver not only strong returns, but real benefits to communities,” Dywili said.

Dywili added that hosting the G20 strengthened South Africa’s reputation as a capable global events destination, creating new ambassadors among visiting delegates and reinforcing international confidence in the tourism sector.

tracy-lynn.ruiters@inl.co.za

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