The B20 Digital Transformation Task Force’s decision to launch a R2 billion (US$100 million) fund for Africa-focused tech start-ups offers one of the clearest signals from the South African G20: influence in global economic policy is shifting away from traditional state-to-state diplomacy towards a blend of private investment, multilateral coordination and technology-led entrepreneurship. 

Although the G20 remains dominated on paper by the world’s major economies, the Johannesburg summit exposed the limits of that structure. The United States scaled back its participation, boycotting several sessions, underscoring how even the most powerful members can no longer unilaterally shape outcomes. South Africa, meanwhile, used its presidency to drive a more assertive Global South agenda, pushing proposals on debt reform, digital public infrastructure, climate-transition financing and the industrialisation of critical minerals. 

But the celebratory tone around South Africa’s success in securing a G20 Leaders’ Declaration (signed without the United States) masked a more sobering reality. Without full buy-in from the world’s largest economy, many of the commitments will struggle to translate into implementation. The real test will be whether South Africa can convert the summit’s diplomatic momentum into partnerships with the US and other major innovation economies that can build genuine technology pipelines into Africa. 

This is where the B20 provided more substance. Power is increasingly shared between three centres: national governments, multilateral institutions such as the IMF and World Bank, and the global pool of private capital that drives innovation. The new B20 fund demonstrates this shift. It marks a move towards positioning African entrepreneurs as investable players in digital finance, education technology, agriculture, health and connectivity. 

The G20 Leaders’ Declaration reinforces these themes, creating openings for African and South African businesses, from integrating into global digital platforms to accessing early-stage capital that local start-ups often struggle to secure. 

Still, declarations alone are not enough. Without deeper cooperation from the US and other major economies, many commitments risk losing momentum. Companies that align with the new policy frameworks, plug into emerging investment flows and position themselves within regional tech and industrial systems stand to gain.  

The B20 Digital Transformation Task Force’s recommendation to “promote secure and inclusive digital public infrastructure ecosystems that incentivise private sector innovation and investment” reads well, but its impact ultimately depends on domestic regulatory capacity and licensing decisions. This helps explain why West Africa has attracted the largest share of tech venture capital deal volume in Africa, (sitting at 26% in 2023) while South Africa continues to fall behind in bridging the digital divide, despite hosting and championing this year’s B20 stream. 

For South Africa, this divide points to a deeper challenge: without a coherent domestic policy agenda that attracts private capital at scale, the country cannot hope to tackle unemployment or expand access to life-changing technologies such as affordable, reliable internet connectivity. 

– Victoria Tompkins
Account Manager