<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-820x547.jpg" alt="" class="wp-image-579309" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">African government, business and civil society leaders met in Davos. Image: World Economic Forum/Chris Heeney</figcaption></figure>



From its burgeoning youth population to its expanding influence on the global stage, Africa’s potential, challenges and new global leadership were at the heart of discussions at this week’s Annual Meeting in Davos.



Leaders from government, business and civil society gathered to explore the continent’s demographic dividend, address persistent divides in digital access and healthcare, and recognize Africa’s growing role in shaping international affairs. Here were the topics that came up.



<h2 class="wp-block-heading" id="h-africa-s-economy-young-and-fast">Africa’s economy: young and fast</h2>



If there was one word that might summarize discussions at Davos as it relates to Africa, it might be: optimism. “I have to say, I’m excited about where we’re going as a continent,” said Godfrey Mutizwa of CNBC Africa, in a panel he moderated about Africa’s momentum.



One big source of excitement across sessions was what might be called Africa’s vitality. Often referred to as “the young continent,” Erika Kraemer Mbula, Professor of Economics at the University of Johannesburg, was quick to correct that. “When I talk to my historian and paleontologist colleagues, they always remind me that this is the oldest continent when it comes to the origin of civilization; it is the cradle of humankind. It’s a youthful continent rather than the youngest.” The figures she shared speak for themselves. “60% of our population is below the age of 25. By 2050, about one out of three working age people globally will be African. So it’s about how we use this as an opportunity for transformative change.”



This youthfulness translates into a continent characterized by a “cutting-edge spirit of innovation,” said Wamkele Keabetswe Mene, Secretary-General of the African Continental Free Trade Area Secretariat.



<h2 class="wp-block-heading">Bridging divides</h2>



Capitalizing on all the continent has to offer, though, will require bridging deep gaps.



For example, when it comes to health, South Africa’s Minister of Health Pakishe Aaron Motsoaledi spoke of the “existing gross inequalities in the health status of people between developed and developing countries” but also “within the borders of countries themselves. It is politically, economically and socially unacceptable.”



Closing some of these deep gaps will be a priority of his, he said, referencing South Africa’s two-tier system, where the wealthiest in society have access to world-class services and everyone else has to make do. “In South Africa, and I’m not exaggerating, our inequality is worse than in any other country when it comes to healthcare.” According to figures shared by the minister, 51% of the country’s healthcare spending goes to the richest 14% of the population.



Digital divides were another topic that came up across the sessions. According to the&nbsp;<a href="https://www.un.org/africarenewal/magazine/december-2024/connectivity-everyone-key-africas-growth-and-prosperity">International Telecommunication Union’s latest data</a>, only 38% of people in Africa are using the internet, compared to the global average of 68%. In the&nbsp;<a href="https://www.weforum.org/stories/2024/09/the-intelligent-age-a-time-of-cooperation/">Intelligent Age</a>, where rapid advancements in artificial intelligence, quantum computing and blockchain offer many new opportunities, bridging this digital divide could be a game-changer. For example, as Paula Ingabire, Rwanda’s Minister of Information Communication Technology and Innovation, said, a report her department recently commissioned showed the financial boost potentially offered by AI. “What we are seeing is even with basic use cases that we can deploy, a potential to create at least 6% GDP contribution,” she said.



<h2 class="wp-block-heading">Financing change</h2>



Africa is full of people brimming with ideas on how to tackle the above challenges and more. But without access to resources, these ideas will remain just that.



“We don’t have a problem of entrepreneurship in Africa,” said Strive Masiyiwa, Founder and Executive Chairman, Cassava Technologies. “We have a lot of entrepreneurs, more than in any developed country, because our kids leave school knowing that if you don’t start something, you&#8217;re not going to be employed. But we have not put in place an ecosystem to support startups. There is no concept of it.”



The challenge for Africa’s women entrepreneurs runs even deeper, said Fatoumata Ba, Founder and Executive Chair of Janngo Capital — and also the founder of Africa’s first unicorn, the term used to describe startups that reach a valuation of $1 billion. “African women have the highest rate of female entrepreneurship globally at 26%. Yet according to the African Development Bank, they are facing a $42 billion funding gap,” she said. “Access to capital is a very important topic to tackle.”



<h2 class="wp-block-heading">A new era of African leadership</h2>



In December, South Africa assumed the G20 Presidency, the first time in the intergovernmental forum’s history that it will be hosted on the African continent. In&nbsp;<a href="https://www.weforum.org/stories/2025/01/davos-2025-special-address-cyril-ramaphosa-president-south-africa/">a special address at Davos</a>, South Africa’s President Cyril Ramaphosa shared his vision for his country’s and the continent’s leadership over the coming year, highlighting the unique role they might play in reigniting global cooperation after years of deepening divides.



“As we confront the challenges of the 21st century — from climate change to pandemics, to addressing the challenges of poverty to terrorism, from migration to artificial intelligence – we are again called upon to harness that most powerful, and most enduring, of human attributes: mutually beneficial cooperation and collaboration,” he told participants at the meeting.



Already, on many of these challenges, Africa has been stepping up to the plate. For example, in a week that saw some countries backtrack on their climate commitments, African countries have been doubling down on theirs.



Take the&nbsp;<a href="https://www.weforum.org/stories/2025/01/congo-kivu-kinshasa-green-corridor/">announcement of the Kivu-Kinshasa Green Corridor</a>. This historic initiative will see an area covering 540,000 km² — the size of France — become protected through partnerships with communities that integrate conservation and restoration with green economic development.



The initiative was spearheaded by the Democratic Republic of Congo, whose President Félix-Antoine Tshisekedi Tshilombo was in Davos to present his hopes for what could be achieved — from both an environmental and a societal perspective. “This project aims to protect some of the most intact tropical forests on the planet, while preserving extraordinary biodiversity, including some iconic species…that are unique to the Congo Basin,” he said. “But this initiative goes far beyond simple environmental preservation…It will create over 500,000 jobs, including at least 20,000 specifically for young men and women who’ve been demobilized from armed groups.”



Other initiatives announced in Davos hold great hope for the future. For example, Angola, Gabon, Senegal and Kenya joined the&nbsp;<a href="https://www.globalplasticaction.org/home">Global Plastic Action Partnership</a>, a global effort now made up of 25 countries to address plastic pollution through systemic waste solutions and a circular economy.



In Pretoria, South Africa,&nbsp;<a href="https://www.smart-energy.com/industry-sectors/digitalisation/world-economic-forum-launches-new-centres-for-the-energy-transition/#:~:text=The%20South%20Africa%20Centre%20for,the%20twin%20challenges%20of%20inclusive">a new centre for the energy transition</a>&nbsp;was announced, part of the World Economic Forum’s Centre for the Fourth Industrial Revolution initiative.



And the Forum, in partnership with the Global Center on Adaptation, is creating a new platform to boost private investment in climate adaptation in Africa. While a formal launch won’t take place until spring, the CRDB Bank Group has already committed $1 billion.



Aside from climate change, Africa has been showing leadership in other areas, too. For example, at a time when some of the most basic democratic norms are being increasingly challenged, countries on the continent have been leading by example, as Duma Gideon Boko, the recently elected President of Botswana told participants.



“When power changes, it occasions a great deal of consternation, a great deal of anxiety. We are never sure whether it will happen at all…and whether those who are in power are fully committed to the fundamental tenets of democracy,” he explained. “In Botswana, a party that had been in power for 58 years faced the unexpected spectacle of a decisive loss at the polls, and many questioned whether the outcome would be accepted, whether power would really change hands. Well, in Botswana it did — it was peaceful; it was seamless.”



What’s clear, then, is that increasingly, the future of Africa is no longer being shaped by forces outside the continent: it is coming from inside. “We are the ones charged with the responsibility to develop, and we are responsible to our people,” explained Strive Masiyiwa, Founder and Executive Chairman at Cassava Technologies. “Africans must develop Africa; it’s our continent.”

large_IxbhBNmPXP-nil4KL0PURE8h4lgoidtZrk2ukHxBuiE

Davos 2025: Here’s what was top of the agenda for leaders from Africa

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-820x461.jpg" alt="" class="wp-image-578258" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090637-1737563597358-1U8A1421.jpg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rachel Reeves, UK Finance Minister, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22, 2025. Gerry Miller | CNBC</figcaption></figure>



The U.K. will soften some planned changes to its controversial non-dom tax rule following concerns of a millionaire exodus, the Treasury has confirmed.



Britain’s 200-year-old non-dom regime permits people living in the U.K., but who are domiciled elsewhere for tax purposes, to avoid paying levies on income and capital gains earnings overseas for up to 15 years. The regime has long courted controversy, leading U.K. Finance Minister Rachel Reeves in her October budget to confirm that it would be abolished from April 2025, and that all long-term residents would be subject to inheritance tax on their worldwide assets, including those held in trust.



Speaking at a fringe event at the World Economic Forum in Davos, Reeves said the government would soon put forward an amendment to the country’s Finance Bill, increasing the generosity of a rule which allows non-doms to bring money to the UK without paying significant taxes.&nbsp;



“We have been listening to the concerns that have been raised by the non-dom community,” Reeves told The Wall Street Journal’s Emma Tucker when asked about recent departures of the ultra-wealthy.



“In the finance bill, we will be tabling an amendment which makes more generous the temporary repatriation facility, which enables non-doms to bring money into the UK without paying significant taxes,” she added.



Reeves on Thursday also sought to reassure wealthy overseas investors that the changes would not affect double-taxation agreements held between the U.K. and other countries.



“There’s been some concerns from countries that have double taxation conventions with the U.K., including India, that they would be drawn in to be paying inheritance tax. That’s not the case. We’re not going to be changing those double taxation conventions,” she said.



In a statement to CNBC confirming the plans, a Treasury spokesperson said the tweaks were designed to motivate non-doms “to bring their funds to the U.K., encouraging them to spend and invest this money here.”



“While we do not expect these changes to impact the £33.8 billion of tax revenue that the OBR forecast to raise over five years, they reflect our continued engagement with stakeholders to make sure the reforms announced at Budget operate as intended,” the statement added.



The government’s October clampdown on non-doms formed part of wider measures aimed at the upper echelons, with new levies placed on private equity bosses, private schools, second homes and private jets.



Critics warned at the time that the moves would spark a mass exit of ultra wealthy individuals — many of whom, they said, would be key contributors to the government’s pro-investment agenda.



An estimated 10,800 millionaires left the U.K. last year, according to updated figures from global analytics firm New World Wealth and investment migration advisers Henley &amp; Partners, a 157% increase on 2023.



<a href="https://www.cnbc.com/live-tv/"></a>

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UK to soften tax rules for wealthy foreigners after millionaire exodus, Rachel Reeves says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-820x547.jpg" alt="" class="wp-image-578192" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1931982369-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Wale Edun, Nigeria&#8217;s finance minister, during a Bloomberg Television interview on day two of the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 17, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



DAVOS, Switzerland, (Reuters) &#8211; Nigeria needs to double economic growth within the next year or two from an annualized rate of 3.5% in the third quarter to lift its population out of poverty, its finance minister told Reuters on Thursday at the World Economic Forum&#8217;s annual meeting.



Finance Minister and Coordinating Minister for the Economy Wale Edun said Nigeria was on the path to growth after a year of tough economic reforms that sent inflation soaring, but should open the door for more investment.



Edun said he had been meeting in Davos this week with business leaders in the areas of consumer goods, food and beverages, financial services and infrastructure to promote investments, he said in a Thursday interview.



&#8220;It&#8217;s a steady trickle now. What we want is a stream and at the end of the day a flood of investment,&#8221; he said.



Nigeria has been trying to encourage private investment rather than rely on borrowing to create jobs, as the government searches for a solution to sluggish growth, double-digit inflation and a heavy debt burden.



President Bola Tinubu has vowed to expand the economy by at least 6% a year, create jobs and unify the exchange rate, while also tackling rampant insecurity.



Tinubu scrapped a popular but costly petrol subsidy and lifted foreign exchange trading restrictions. That contributed to consumer inflation, but Edun expressed confidence that Nigerians would soon be past their cost of living crisis.



Central Bank Governor Olayemi Cardoso on Thursday said he expected the economy to expand by 4.17% this year, driven by ongoing reforms and stabilising inflation.



(Writing by Chijioke Ohuocha; Editing by Mark Potter)

Day Two Of The World Economic Forum (WEF) 2024

Nigeria needs to double economic growth within a year or two, finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-820x547.jpg" alt="" class="wp-image-577956" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/54279620516_c7afabe6a8_o-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Duma Gideon Boko, President of Botswana; Godfrey Mutizwa, Chief Editor, CNBC Africa, South Africa; Leila Fourie, Group Chief Executive Officer, Johannesburg Stock Exchange, South Africa; Samaila Zubairu, President and Chief Executive Officer, Africa Finance Corporation &#8211; AFC, Lagos; Wamkele Keabetswe Mene, Secretary-General, African Continental Free Trade Area Secretariat, Accra; speaking in Africa’s Economy: Young and Fast session at the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland, 21/1/2025, 17:30 – 18:15 at Congress Centre &#8211; Aspen 2. Stakeholder Dialogue. Copyright: World Economic Forum / Chris Heeney</figcaption></figure>



DAVOS, Switzerland, Jan 23 (Reuters)&nbsp;&#8211;&nbsp;Top diamond producer Botswana&#8217;s new President Duma Boko said on Thursday that he hoped to clinch a long-delayed sales pact with industry giant De Beers as early as Friday but underlined the need to diversify the Southern African nation&#8217;s economy.



Boko, a 55-year-old lawyer, took the reins of Botswana &#8211; one of Africa&#8217;s richest countries &#8211; in November following a landslide election upset that ended nearly six decades of rule by the Botswana Democratic Party (BDP).



He has made the task of finalising the deal with Anglo American&#8217;s De Beers unit an early priority.



Speaking at a Reuters NEXT Newsmaker at the World Economic Forum&#8217;s annual meeting in Davos, Switzerland, Boko said his government was in agreement with De Beers on most issues. All that remained was &#8220;tidying up&#8221;, he added.



Asked by Reuters Editor-in-Chief Alessandra Galloni when the deal would be signed, Boko said: &#8220;I&#8217;m hoping it is tomorrow. I mean it literally.&#8221;



Botswana and De Beers agreed a new pact in 2023, which would see the government&#8217;s share of diamonds from the Debswana joint venture gradually increase to 50% over the next decade. But it was never signed under Boko&#8217;s predecessor Mokgweetsi Masisi.



Debswana currently sells 75% of its output to De Beers.



In addition, Boko said talks aimed at increasing Botswana&#8217;s ownership stake in De Beers &#8211; currently at 15% &#8211; were &#8220;going well&#8221;.



Anglo American is looking to divest De Beers as part of a broader restructuring of its sprawling business.



<h2 class="wp-block-heading" id="h-challenges-and-opportunities">CHALLENGES AND OPPORTUNITIES</h2>



Like many African countries, Botswana&#8217;s economy is largely dependent on the export of a single commodity &#8211; in its case, diamonds, of which it is the world&#8217;s leading producer by value.



Unlike many of its continental neighbours, its leaders have invested their commodity windfall in health, education and social welfare.



The strategy has largely paid off. Botswana&#8217;s GDP per capita was $7,250 in 2023 &#8211; compared with an average for sub-Saharan Africa of $4,800, World Bank data shows.



Analysts, however, blamed mounting economic grievances, particularly among young people, for the downfall of the BDP, which had governed the nation of around 2.5 million people since independence from Britain in 1966.



&#8220;The so-called liberation parties did the best they could,&#8221; Boko said. &#8220;It seems to me that many of them have now outlived their welcome and their usefulness.&#8221;



On the campaign trail, Boko&#8217;s coalition pledged to more than double the minimum wage, improve social services and create a more independent judiciary, among other measures.



But the new president faces headwinds.



The economy likely contracted last year on a downturn in the global diamond market and unemployment has been on the rise.



The finance ministry is now forecasting a diamond rebound and GDP growth of 3% to 4% this year. However, Boko told the Reuters event that Botswana could not rely solely on diamonds.



&#8220;We are looking to power the economy of Botswana. We&#8217;re looking to diversify it,&#8221; he said, adding that his government would focus on the green economy, climate-smart agriculture, renewable energy and diversifying the mining sector.



While many world leaders are viewing the return to power of U.S. President Donald Trump with concern, Boko said the new Washington administration&#8217;s vow to bring its foreign policy in line with American self-interest was not necessarily a threat.



&#8220;(The) West has every reason to play its part in Africa, because if it doesn&#8217;t, there are others who will want to play some part. We have China in the wings, and it&#8217;s seeking&#8230; to exert influence on Africa,&#8221; he said.



(Additional reporting by Bhargav Acharya and Sfundo Parakozov in Johannesburg; Writing by Tannur Anders and Joe Bavier Editing by Alexander Winning, William Maclean)

World Economic Forum Annual Meeting 2025 in Davos-Klosters

Botswana president aims to clinch De Beers deal, diversify economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-820x461.jpg" alt="" class="wp-image-577907" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091198-1737637105852-108090536-1737559226059-Untitled-2.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">L-R: Satya Nadella, CEO of Microsoft, Marc Benioff, Chairman and CEO of Salesforce, and Elon Musk, CEO of Tesla and SpaceX. Reuters</figcaption></figure>



Some of the biggest names in technology have clashed after President Donald Trump unveiled his $500 billion private AI investment project.



Earlier this week, Trump announced a joint venture with OpenAI, Oracle and Softbank to invest billions of dollars in ramping up domestic computing capacity to boost AI development in the United States.



The project, dubbed Stargate, was unveiled at the White House by Trump, Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle co-founder Larry Ellison. Son will be the chairman of Stargate, while semiconductor company Arm, Microsoft, Nvidia, Oracle, and OpenAI will serve as key initial technology partners.



The executives committed to invest an initial $100 billion and up to $500 billion over the next four years.



The first blow was thrown by Elon Musk — a close ally to Trump and himself a key figure in AI with his startup xAI — who claimed in a post on his X social media platform that the companies involved in the project “don’t actually have the money” to fund the investment.



“SoftBank has well under $10B secured. I have that on good authority,” Musk added in a subsequent post. Altman, replying to Musk’s allegation, said. “Wrong, as you surely know.”



“Want to come visit the first site already under way?” Altman added. “This is great for the country. i realize what is great for the country isn’t always what’s optimal for your companies, but in your new role i hope you’ll mostly put [the U.S.] first.”



Musk chairs the Department of Government Efficiency, or DOGE, a major White House government efficiency effort. He was Trump’s biggest financial backer by far in the 2024&nbsp;election.



<h2 class="wp-block-heading" id="h-possible-microsoft-openai-rift-emerging"><a></a>Possible Microsoft-OpenAI rift emerging</h2>



On Wednesday, Salesforce CEO Marc Benioff suggested the investment plan could create tensions between OpenAI and Microsoft, who are close partners.



OpenAI said Tuesday that it had ended an arrangement with Microsoft to serve as its exclusive cloud provider. The change in relationship was disclosed as part of the Stargate Project announcement.



“I think it’s extremely important that OpenAI gets to other platforms quickly because Microsoft is building their own AI,” Benioff told CNBC. “I don’t think that Microsoft will use OpenAI in the future, they’ll have their own frontier models.”



“They’ve said it very clearly that it’s too expensive and too hard for them, and that they want to have their own,” the Salesforce chief added. “That’s why they hired Mustafa Suleyman [as Microsoft AI CEO] — and Mustafa Suleyman and Sam Altman are not best friends.”



Microsoft last year appointed Suleyman, a co-founder of Google’s AI lab DeepMind, to lead its new AI division.



Microsoft is the single largest investor in OpenAI, having plowed billions of dollars of investment into the firm. It also offers OpenAI models on its Azure cloud platform as part of a commercial arrangement between the two firms.



<h2 class="wp-block-heading" id="h-i-m-good-for-my-80-billion"><a></a>‘I’m good for my $80 billion’</h2>



Microsoft CEO Satya Nadella addressed concerns surrounding the tech giant’s relationship with OpenAI Wednesday, saying that the two continue to share a “critical partnership.”



“Sam [Altman] wants to continue with scaling laws to build out more compute in order for him to train more models,” Nadella told CNBC. “We have right of first refusal. He comes to us first. If we meet those needs, then we clear it. If not, he can go to these other providers.”



When asked about Musk’s claim that OpenAI and other companies involved in Stargate don’t have the funds to make up the total $100 billion initial commitment, Nadella said: “Look, all I know is, I’m good for my $80 billion.”



Microsoft announced at the start of 2025 that it plans to spend $80 billion this year on the construction of data centers to boost its AI efforts.



“I am going to spend $80 billion building out Azure,” Nadella told CNBC. “Customers can count on Microsoft.”



&#8211; CNBC’s Eamon Javers and Kevin Breuninger contributed to this report

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From Musk to Nadella: Trump’s $500 billion AI project stirs drama among the biggest names in tech

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="589" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194278761-820x589.jpg" alt="" class="wp-image-577904" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194278761-820x589.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194278761-300x215.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194278761-125x90.jpg 125w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194278761-768x552.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194278761-1536x1103.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194278761-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DAVOS, SWITZERLAND &#8211; JANUARY 19: A general view of a banner as World Economic Forum (WEF) Annual Meeting convenes under the theme of &#8216;Collaboration for the Intelligent Age&#8217; in Davos, Switzerland on January 19, 2025. The summit is expected to attract 3,000 participants, including business people, politicians, academics and representatives of non-governmental organizations from more than 130 countries. (Photo by Halil Sagirkaya/Anadolu via Getty Images)</figcaption></figure>



This report is from this week’s CNBC’s “Inside India” newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Like what you see? You can subscribe here.



<h2 class="wp-block-heading" id="h-the-big-story"><a></a>The big story</h2>



Seven years ago in Davos, Indian prime minister Narendra Modi spoke of India’s ambitions to become a $5 trillion economy by 2025.



“The people and youth of India are now ready to contribute to the creation of an economy of $5 trillion by 2025,” he outlined in his address at the 2018 World Economic Forum (WEF).



“Not only this, when innovation and entrepreneurship &#8230; help [individuals] to transform from job seeker to job giver, then the number of avenues that will be opened up for their country and your business can only be imagined,” Modi added.



It’s fair to say that meeting that goal has proven to be tough.



India’s economy is projected to be around $4.27 trillion according to the International Monetary Fund this year, $0.73 trillion short of Modi’s target.



Its slowing economy has raised questions on the country’s lofty growth targets. Market watchers argue that India is now in the midst of a cyclical slowdown.



What is interesting though is that the India story &#8211; and its growth potential &#8211; continue to grab the attention of investors in India, Davos and beyond.



India is among the top five territories where global CEOs polled by consultancy firm PwC are looking to invest in over the next 12 months. The other territories cracking the top 5 among the 4,700 CEOs polled across 109 countries, were the U.S., U.K., Germany and mainland China.



Optimism on India has spilled over in the ongoing discussions in Davos.



Speaking to CNBC at the sidelines of this year’s World Economic Forum, Mubadala Investment Company’s managing director and group CEO Khaldoon Al Mubarak described India as a “very, very interesting country (and) very interesting market.”



Among the metrics that stand out to him on India’s potential is its large, yet young demographic. Around 480 million Indians are below the age of 18 &#8211; that is larger than the population of the U.S., the combined population of Europe, the number of people in the Middle East as well South America’s population below the age of 18, Mubarak said.



“We’ve been investing in India &#8230; for years, and we continue to work on building our portfolio in India and really getting into that wave that’s started already,” he said.



This cycle, he added, “will continue, in my view, going forward.”



Mubadala’s investments in India include the Tata Group-owned Tata Power Renewable Energy and Reliance Industries-backed technology giant Jio Platforms.



Prosus, is another investment company looking to cash in on India’s growth potential, especially the country’s technology industry.



“You saw the impact of technology in India &#8230; and they are saying ‘we are ready for the next step’,” the company’s CEO Fabricio Bloisi told CNBC at the sidelines of the summit.



“Prosus is ready to invest much, much more India. We have invested like $8 billion there over the last few years and we will invest much more,” he added.



Indian startups Prosus has invested in include food delivery firm Swiggy, edtech firm BYJU’s, agritech player Dehaat and e-commerce platform Meesho.



Going big on tech



The interest in India &#8211; particularly the opportunities in its tech and startup space &#8211; is in line with the government’s wider focus on developing the sector.



Among the key priorities of India’s delegation to Davos this year was to deepen its foothold in the semiconductor industry by way of government incentives and targets.



This includes exploring the development of its own Graphics Processing Unit (GPU) in the next three to five years, Ashwini Vaishnaw, minister of railways, information technology and information and broadcasting told CNBC-TV18 at the sidelines of the WEF meeting.



Other projects he revealed include India’s plans to develop 25 indigenous chipsets that are designed and fabricated in the country. It is looking forward to rolling out the first chip by September and the first fab by 2026.



Vaishnaw also outlined the government’s goal of providing underlying compute power with 1,000 GPUs, especially for the benefit of start-ups that lack access.



This is part of the government’s focus this year to foster talent and leverage data to create robust datasets to train AI models, he added.



Vaishnaw had led what is reportedly India’s largest delegation to Davos this year, featuring representatives from eight states: Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, West Bengal and Uttar Pradesh, with each vying for investments for their upcoming initiatives.



For instance, Andhra Pradesh’s Chief Minister Chandrababu Naidu reportedly showcased the state’s business-friendly policies in hopes of wooing multinationals like Unilever, PepsiCo, Google Cloud and AstraZeneca.



Its neighbor Telangana, meanwhile, exhibited its expertise in electric vehicles, pharmaceuticals, and semiconductors. Elsewhere, Maharashtra reportedly presented itself as India’s industrial powerhouse.



The hefty presence of Indian officials at Davos is likely an acknowledgement of the fact that companies, particularly those that have only been around for a few years, need more capital than they can raise domestically.



Foreign investments into the country are “drying up” due to economic policy uncertainty and geopolitical risks, according to Dhiraj Nim, a foreign exchange strategist and economist at ANZ Bank.



One way forward is for the Indian government to “foster greater confidence by reducing political and regulatory costs, improving the ease of doing business in India,” he suggested.



“There is a lot India can do even if global variables are beyond control. India has plans to become a developed nation by 2047, so we would need much stronger growth than the 6 &#8211; 7% we are getting used to. And growth will have to be realized by realizing more investments and also beefing up labor force productivity and technological capabilities,” Nim added.



The issue of how India plans to continue growing at a sustainable pace, while providing jobs and increasing productivity, is top of mind for the Indian government. In Davos, India’s Railways, Electronics and Information Broadcasting Minister Mr Ashwini Vaishnaw sat down to discuss with a group of global executives, investors and Indian entrepreneurs. The breakfast organized by Brunswick Group and CNBC on the sidelines of the World Economic Forum, allowed executives and investors to ask the Minister questions and discuss the investing environment in India.&nbsp;



<h2 class="wp-block-heading" id="h-need-to-know"><a></a>Need to know</h2>



India might lower its disinvestment target for FY25. The country’s government is looking to cut its disinvestment and asset monetization goals by 40% — or to less than 300 billion rupees ($3.47 billion) from 500 billion rupees — for the financial year 2024 to 2025, The Economic Times reported, citing people familiar with the discussion. Regulatory obstacles and valuation difficulties have proven to be roadblocks, but Prime Minister Narendra Modi’s administration has still sold more stake in state-run firms than previous governments.



The Quad convened and reaffirmed their partnership. Foreign ministers of the group, comprising U.S., Australia, India and Japan, met on Tuesday and emphasized the importance of preserving a free Indo-Pacific, according to a joint statement issued after the talks in Washington. The meeting, hosted by U.S. Secretary of State Marco Rubio on his first day in the job, was meant to indicate that countering China was a top priority for the Trump administration, analysts said.



Oil prices could rise in India. The U.S. imposed new sanctions on Russian oil on Jan. 10. As India imports around 40% of its oil from Russia, according to trade intelligence firm Kpler, New Delhi could be facing a sudden supply crunch. Supply disruptions to India could be as high as 500,000 barrels per day, Rystad Energy’s senior analyst Viktor Kurilov told CNBC. To mitigate the potential oil shock, Indian importers are looking to import oil from suppliers in the Middle East.



<h2 class="wp-block-heading" id="h-what-happened-in-the-markets"><a></a>What happened in the markets?</h2>



Indian stocks traded mixed this week. The Nifty 50 index was down 0.03% this week and closed at 23,205.35 points.



The benchmark 10-year&nbsp;Indian government bond yield was flat at 6.78%



On CNBC TV this week, Kumar Rakesh, BNP Paribas’ India analyst, expressed optimism on India’s auto industry. India’s exports of passenger vehicles and motorcycles have been growing at a reasonably strong rate in recent years, especially in the African, Latin American, Middle East and Southeast Asian markets, Rakesh said. Moreover, Indian automakers have been able to enjoy greater profitability because their cost of production domestically is one of the lowest in the world.



Meanwhile, Jose Rasco, HSBC Global Private Banking and Wealth Management Americas CIO, acknowledged that India’s market isn’t cheap, but that’s because investors are “paying for quality.” Some features that attract investors to India are its young and diversified economy, a good legal system and increasing productivity in recent years.



<h2 class="wp-block-heading"><a></a>What’s happening next week?</h2>



Central bank meetings and Big Tech earnings are in focus the upcoming week. Meanwhile, Denta Water and Infra Solutions, a water management and infrastructure company, lists on the Indian market.



January 24:&nbsp;India HSBC PMI Flash for January,&nbsp;Bank of Japan meeting,&nbsp;Japan inflation rate for December, U.K. S&amp;P PMI flash for January



January 29:&nbsp;U.S. Federal Reserve meeting, Denta Water and Infra Solutions IPO, Meta Platforms, Microsoft and Tesla earnings



January 30: U.S. gross domestic product for fourth quarter,&nbsp;European Central Bank meeting,&nbsp;Apple and Intel earnings

World Economic Forum (WEF) Annual Meeting starts in Switzerland

CNBC’s Inside India newsletter: A slowing economy hasn’t dimmed India’s allure at Davos

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091148-1737632698027-gettyimages-2194666352-AFP_36VC8GV-820x461.jpeg" alt="" class="wp-image-577846" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091148-1737632698027-gettyimages-2194666352-AFP_36VC8GV-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091148-1737632698027-gettyimages-2194666352-AFP_36VC8GV-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091148-1737632698027-gettyimages-2194666352-AFP_36VC8GV-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091148-1737632698027-gettyimages-2194666352-AFP_36VC8GV-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091148-1737632698027-gettyimages-2194666352-AFP_36VC8GV-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108091148-1737632698027-gettyimages-2194666352-AFP_36VC8GV.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">This photograph taken in Davos on January 22, 2025 shows the logo of the World Economic Forum (WEF) annual meeting. Fabrice Coffrini | Afp | Getty Images</figcaption></figure>



European business leaders have broadly sought to downplay concerns about the prospect of a transatlantic trade war at this week’s World Economic Forum in Davos.



U.S. President Donald Trump has repeatedly pledged to impose tariffs on goods imported from the European Union, prompting the bloc to warn that it stands ready to respond to additional duties “in a proportionate way.”



Speaking to reporters earlier in the week, the newly inaugurated U.S. president said the EU has been “very, very bad to us. So, they’re going to be in for tariffs. It’s the only way … you’re going to get fairness.”



His comments came as the Trump administration also considers imposing an additional 10% tariff on goods imported from China, potentially starting as early as next month.



For business leaders attending the annual WEF meeting in Switzerland, the reaction to Trump’s tariffs threats has been decidedly mixed.



JPMorgan Chase CEO Jamie Dimon on Wednesday said that the duties Trump is expected to slap on U.S. trading partners can be viewed positively, touting that people should “get over it.”



UBS CEO Sergio Ermotti, meanwhile, warned that interest rates were not likely to fall as fast, if U.S. tariffs stoke inflation.



Siemens CEO Roland Busch described the German industrial giant as “tariff-proof,” amid fears of a U.S.-EU trade war.



Asked about concerns over how the tariffs could impact his business, Busch said Siemens was a “global company” that already has a relatively large presence in the U.S.



“We are very much [serving] local to local, same for other regions, for China [and] for Europe,” Busch said.



Siemens chief executive cited the firm’s roughly $10 billion acquisition of U.S. engineering software firm Altair, saying the company has recently been expanding its U.S. footprint.



“On the other side, tariffs normally they increase inflation by definition, so it doesn’t really help. So, I think the idea would be what can we do, what kind of deals to make in order to really reduce the trade tariffs to the minimal level,” Busch told CNBC.



“Free trade and low tariffs, I think, is really a driver for growth,” he added.



<h2 class="wp-block-heading" id="h-tariffs-are-not-helping-global-trade"><a></a>‘Tariffs are not helping global trade’</h2>



The chief executive of Danish wind turbine manufacturer Vestas on Thursday said that the idea that tariffs will bring the world to a better place is “at least a new theory to many of us.”



Vestas’ Henrik Andersen also warned that additional duties on imported goods will likely create an inflation risk.



Asked about the prospect of trade tariffs in Europe and the souring regulatory environment for green energy in the U.S., Vestas’s CEO told CNBC: “I think to both, I will say, let sense prevail.”



SAP CEO Christian Klein on Thursday said that U.S. tariffs would not be helpful, underlining the importance for technology companies to make deals with global trade partners.



“I would say tariffs are not helping global trade. And when you look [at] the dependencies between Europe and the U.S., or the United States and China, I don’t believe that this is good,” Klein told CNBC.



SAP’s Klein said he’d been talking to several leaders in Davos about how SAP can support them with their supply chain and finance software.



“Because, you know, everyone is doing business in China. China, of course, also wants to continue to do business in the U.S. So, for technology, it’s now even more important to build these bridges, to build this resilient supply chains,” he added.

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‘Let sense prevail’: European CEOs still hope to avoid a U.S. trade war

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1091184376-820x547.jpg" alt="" class="wp-image-577776" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1091184376-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1091184376-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1091184376-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1091184376-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1091184376-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-1091184376-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">DAVOS, CANTON OF GRAUBüNDEN, SWITZERLAND &#8211; 2019/01/24: Cyril Ramaphosa, president of South Africa, attends a panel at the 2019 World Economic Forum which took place in Davos from January 22 to 25. (Photo by Thierry Falise/LightRocket via Getty Images)</figcaption></figure>



DAVOS, Switzerland, (Reuters) &#8211; South Africa&#8217;s President Cyril Ramaphosa said on Wednesday that he was not worried about the country&#8217;s relationship with the U.S. under President Donald Trump.



Ramaphosa said he spoke to Trump after his U.S. election victory and looked forward to working with his administration.



&#8220;I&#8217;m not worried about our relations. I spoke to him soon after he was elected, congratulated him, and we both said we are looking forward to continued dealings and engagements,&#8221; he told reporters on the sidelines of the World Economic Forum&#8217;s annual meeting in Davos, Switzerland.



South Africa currently holds the G20 presidency, after which the U.S. takes over.



Ramaphosa said South Africa would work with the U.S. to prepare it for its G20 presidency. 



(Reporting by Brad Haynes; Writing by Bhargav Acharya; Editing by Alexander Winning)

Cyril Ramaphosa, president of South Africa, attends a panel

South Africa not worried about relationship with US under Trump, Ramaphosa says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090573-1737563583857-108090573-1737562015258-jM8zMyA-820x461.jpg" alt="" class="wp-image-577772" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090573-1737563583857-108090573-1737562015258-jM8zMyA-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090573-1737563583857-108090573-1737562015258-jM8zMyA-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090573-1737563583857-108090573-1737562015258-jM8zMyA-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090573-1737563583857-108090573-1737562015258-jM8zMyA-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090573-1737563583857-108090573-1737562015258-jM8zMyA-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090573-1737563583857-108090573-1737562015258-jM8zMyA.jpg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



JPMorgan Chase CEO Jamie Dimon on Wednesday called the U.S. stock market inflated and said he felt more cautious than others in the business world because of the risks from deficit spending, inflation and geopolitical upheaval.



“Asset prices are kind of inflated, by any measure. They are in the top 10% or 15%” of historical valuations, Dimon told CNBC’s Andrew Ross Sorkin at the World Economic Forum in Davos, Switzerland.



Dimon said that he was speaking specifically about the American stock market, which is in the midst of a multiyear bull run.



The S&amp;P 500 had back-to-back annual gains of more than 20% in 2023 and 2024, the first time that has happened in over 25 years. Last year, Dimon even called the shares of his own company expensive.



On Wednesday, Dimon also noted that parts of the bond market, like sovereign debt, are “at all-time highs.”



“So yeah, they’re elevated, and you need fairly good outcomes to justify those prices,” Dimon said. “Having pro-growth strategies helps make that happen, but there are negatives out there, and they can tend to surprise you.”



Dimon, 68, is one of the most respected voices in finance after he built JPMorgan into the biggest American bank by many measures, including assets and market valuation.



He has been sounding a note of caution since 2022, when he said a “hurricane” was heading for the U.S. economy. That storm, however, has yet to arrive as the U.S. exceeded expectations in recent years, and the election of Donald Trump in November boosted hopes around what a pro-growth administration will do.



“I do have a little more caution around a bunch of subjects,” Dimon said Wednesday. “What I’m a little cautious about is the deficit spending; it’s a global issue, not just an American issue,” he said. “And the related [question], ‘Will inflation go away?’ I’m not so sure.”



The rising tide of global conflict, including the Ukraine war, tension in the Middle East and growing threats from China has “just got me very concerned how it’s going to affect our world for the next 100 years,” Dimon said.



In the wide-ranging interview, Dimon voiced support for tariffs on imports to the U.S. if they bolster national security, and said that he and tech entrepreneur Elon Musk have smoothed over a previously contentious relationship. Dimon also said he had no intention to run for office in 2028.



Later Wednesday, Goldman Sachs CEO David Solomon acknowledged that stock market valuations were high, while indicating that they could be justified by enthusiasm over the impact of both artificial intelligence and Trump’s expected moves to relax regulation for American companies.



“It’s hard to dispute the fact that equity multiples are high,” Solomon said. “Markets look forward, and we are coming off of a very, very tough regulatory environment across all industries.”



If Trump administration officials allow more mergers to happen, boosting capital markets activities, it could boost GDP growth by a half percentage point, Solomon said.

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Jamie Dimon says the U.S. stock market is ‘kind of inflated’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090638-1737563597359-1U8A1425-820x547.jpg" alt="" class="wp-image-577769" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090638-1737563597359-1U8A1425-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090638-1737563597359-1U8A1425-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090638-1737563597359-1U8A1425-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090638-1737563597359-1U8A1425-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090638-1737563597359-1U8A1425-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108090638-1737563597359-1U8A1425-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Rachel Reeves, UK Finance Minister, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 22, 2025. Gerry Miller | CNBC</figcaption></figure>



The U.K. is “not part of the problem” when it comes to “persistent” trade deficits that President Donald Trump wants to tackle, the country’s finance minister told CNBC Wednesday.



“I do understand that President [Donald] Trump is concerned about countries that are running large and persistent surpluses on the trade balance with the U.S. That’s not the case for the U.K.,” the U.K.’s Chancellor Rachel Reeves told CNBC’s Andrew Ross Sorkin.



“We are not part of the problem here. So we, the U.K., increased trade with President Trump last time he was in office,” she said, speaking to CNBC on the sidelines of the World Economic Forum in Davos, Switzerland.



President Trump is roundly irritated by the U.S.′ trade deficits with many of its partners, but trade with the U.K. has generally been more balanced, see-sawing between surplus and deficit in recent years.



The latest U.K. trade data shows that, in the second quarter of 2024, the U.K. had a trade surplus of £4.5 billion ($5.5 billion) with the U.S. in goods. In the second quarter of 2023, however, the U.K. had a trade in goods deficit with the U.S. of £2.3 billion.



As such, while China, Mexico, Canada and the EU are seen as the top targets for Trump’s trade tariffs, the U.K. might escape relatively unscathed, economists believe. Reeves expressed optimism over the outlook for U.K.-U.S. commerce.



“There is absolutely no reason why our two great nations, with such a strong and special relationship, can’t increase those flows of trade once again,” Reeves commented.



The U.K.’s finance minister is in Davos this week, trying to attract global investment into the British economy.



To achieve economic growth, she said, “we need more investment into the U.K. And so my message to U.S. investors and global investors too is: Britain is open for business, we want your investment.”



The trip comes after Reeves has come under sustained pressure since unveiling the Treasury’s spending and taxation plans last fall.



The package of measures presented in the ‘Autumn Budget’ centered on increasing the tax burden on British businesses and has drawn widespread criticism from industry leaders, who said the move would stifle investment, jobs and growth.



Recent data releases, including lower-than-expected growth data for November and higher-than-expected government borrowing costs in December, have also contributed to ongoing discomfort in the Treasury.



<h2 class="wp-block-heading" id="h-bond-turmoil"><a></a>Bond turmoil</h2>



The U.K. found itself in more hot water at the start of the year, as the interest rate that investors demanded to hold U.K. bonds — known as gilts — rose sharply, reflecting market jitters over the U.K’s economic prospects.



Reeves has held fast to her fiscal plans, saying that growing the U.K. economy is her top priority.



Commenting on recent gilt market turmoil, the minister said on Wednesday the country was “not immune to what happens in global markets.”



“What I would say, though, is that in the Budget that I set out in October, I put out the fiscal rules that this government will operate within. And those fiscal rules, to pay for day-to-day spending through tax receipts, and to get our debt down as a share of our GDP — those fiscal rules are the bedrock of economic and fiscal stability. They’re non-negotiable, and we will continue to meet them,” she said.



Donald Trump’s election last November represented another headache for the center-left Labour government, with a number of ministers, such as Foreign Minister David Lammy, making less-than-flattering comments about Trump in the past.



Unnatural bedfellows when it comes to political ideology, Prime Minister Keir Starmer, Reeves and the British establishment are looking to build good relations with the White House, particularly amid the potential threat of universal trade tariffs.



The Labour government has been targeted by Trump’s close ally Elon Musk in recent months, with the tech billionaire criticizing Prime Minister Starmer and Britain’s past investigations into child sexual exploitation.



Asked for her opinion on Musk’s interventions, Reeves said Musk was “entitled to his opinion, but he’s not one of the people who votes in the U.K. general election.”

108090638-1737563597359-1U8A1425

UK ‘not part of the problem’ when it comes to U.S. trade, Britain’s finance minister says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194490572-1-820x547.jpg" alt="" class="wp-image-577584" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194490572-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194490572-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194490572-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194490572-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194490572-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194490572-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ursula von der Leyen, president of European Commission, addresses the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 21, 2025. The annual Davos gathering of political leaders, top executives and celebrities runs from January 20 to 24. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



The European Union is “open for business” and keen on global partnerships, European Commission President Ursula von der Leyen said Tuesday, as the world braces for the trade protectionism of newly inaugurated U.S. President Donald Trump.



“Europe will seek cooperation, not just with longtime likeminded friends, but with any country we share interests with,” Von der Leyen said during her official address at the World Economic Forum in Davos, Switzerland. She suggested that, when it comes to challenges like climate change and artificial intelligence, countries must work together even amid a backdrop of “harsh competition.”



“Our message to the world is simple: if there are mutual benefits in sight, we are ready to engage with you. If you want to upgrade your clean tech industries, if you want to upscale your digital infrastructure, Europe is open for business,” Von der Leyen said.



The European Commission chief also noted that she saw growing interest from around the world to engage more with Europe, pointing to partnerships that the bloc has struck with Switzerland, Mexico and South American trade bloc Mercosur.



Europe is looking to boost cooperation with any countries open to collaboration, including partners like the U.S., Von der Leyen said, noting the close integration of the U.S. and EU economies. For example, she noted that many American workers are employed by European companies, and she also pointed to mutual supply chains and trade between the two countries.



“A lot is at stake for both sides,” she said. “Our first priority will be to engage early, discuss common interest and be ready to negotiate. We will be pragmatic, but we will always stand by our principles, we will protect our interests and uphold our values because that is the European way.”



Questions have risen over the future of the European Union’s trade relationship with historical ally Washington, after Trump threatened to impose tariffs on goods from the EU. The measures could significantly impact the bloc’s economies.



“While some in Europe may not like this new reality, we are ready to deal with it,” von der Leyen said.



German Chancellor Olaf Scholz meanwhile said that the U.S. remained Germany’s closest ally outside of Europe, adding that he would do everything he could for this to remain the case.



In his address at the World Economic Forum, Scholz on Tuesday said maintaining this relationship would be in the mutual interest of the U.S. and Germany and that close cooperation between the two was “indispensable for peace and security around the globe,” according to a WEF translation to English. He also said the country’s partnership was key for economic development.



Scholz disclosed that he has had “good first talks” with Trump, but noted that “at the same time, it is absolutely clear President Trump and his government will keep the world in suspense” with respect to various policy areas.



“We are able and will be dealing with this, without any excitement and indignation but also without fake cozying up and telling them what they want to hear,” Scholz said.



The European Commission’s Von der Leyen also that “we should strive for mutual benefits” when talking to the world’s second largest economy, China, with whom the bloc has previously been at odds with over trade and tariffs. Among other steps in their long-standing tit-for-tat economic measures, the EU has imposed duties on imported Chinese electric vehicles, while Beijing launched an anti-dumping investigation into brandy from the EU. China has also been on the receiving end of Trump’s trade threats.



“2025 marks 50 years of our union’s diplomatic relations with China. I see it as an opportunity to engage and deepen out relationship with China and where possible eve to expand out trade and investment ties. it is time to pursue a more balanced relationship with China,” Von der Leyen said.

Opening Day Of World Economic Forum (WEF) 2025

As Trump takes office, the European Union says it’s ready to do business with the world

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108089710-1737466393786-gettyimages-1252137672-SPAIN_IBERDROLA-820x461.jpeg" alt="" class="wp-image-577480" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108089710-1737466393786-gettyimages-1252137672-SPAIN_IBERDROLA-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108089710-1737466393786-gettyimages-1252137672-SPAIN_IBERDROLA-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108089710-1737466393786-gettyimages-1252137672-SPAIN_IBERDROLA-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108089710-1737466393786-gettyimages-1252137672-SPAIN_IBERDROLA-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108089710-1737466393786-gettyimages-1252137672-SPAIN_IBERDROLA-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108089710-1737466393786-gettyimages-1252137672-SPAIN_IBERDROLA.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A logo on the nacelle of a wind turbine at the Martin de la Jara wind farm, operated by Iberdrola SA, in the Martin de la Jara district of Sevilla, Spain, on Friday, April 21, 2023. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Renewable energy giants appear relatively sanguine about U.S. President Donald Trump’s anti-wind policies, describing the process of replacing fossil fuels with electrically powered products as “absolutely unstoppable.”



Trump, who promised a new “golden age” for America in his inaugural address on Monday, swiftly took aim at low-carbon energy initiatives.



In a standalone executive order, which had been widely expected, the president temporarily suspended new or renewed leases for offshore and onshore wind projects and halted the leasing of wind power projects on the outer continental shelf.



“We are not going to do the wind thing. Big ugly windmills, they ruin your neighborhood,” Trump told his supporters at the Capital One Area in Washington on Monday. He previously described wind turbines as an economic and environmental “disaster.”



The measures formed part of a much broader energy offensive designed to “unleash” already booming oil and gas production. This included declaring a national energy emergency, promoting fossil fuel drilling in Alaska and signing an executive order to withdraw the U.S. from the landmark Paris Agreement.



Joe Kaeser, chairman of the supervisory board of Siemens Energy, one of the world’s biggest renewables players, seemed unfazed by Trump’s sweeping energy agenda. In fact, Kaeser considered the policies a “slight plus” for the German energy technology group.



Shares of Siemens Energy jumped more than 8% on Wednesday morning, hitting a new 52-week high.



“We need to see what’s behind all the executive orders and the policies. So far, I believe there are many areas where actually Siemens Energy benefits a lot,” Kaeser told CNBC’s Dan Murphy at the World Economic Forum’s (WEF) annual meeting in Davos, Switzerland on Tuesday.



There will be uncertainty for low-carbon energy sectors, such as onshore and offshore wind, Kaeser said, before adding that Trump’s measures were unlikely to directly impact Siemens Energy. That’s partly because roughly 80% of the firm’s wind market is in Europe, Kaeser said.



“So, I believe that doesn’t move the needle. I’m much more worried about the European economies and how they deal with a very powerful nation, with a very powerful concept. We may or may not like it, because it’s got some nationalistic type of things, but if we look at it from the view of the American people, we better get something going,” Kaeser said.



Beyond onshore and offshore wind, Kaeser said Siemens Energy was well positioned to capitalize from a “booming” electrification market.



“Think about the data centers, artificial intelligence, we have waiting times now on large gas turbines. Actually, customers are coming and saying, hey can I make a reservation and I’ll pay you for a reservation? Just think about that. It hasn’t happened for a long time,” Kaeser said.



“I believe the electrification age has just begun. Whether that’s gas turbines or wind or solar or something else, we’ve got everything, and the customers decide in the end. And one thing I believe one should not underestimate, the White House is not buying much [but] the customer does,” he added.



<h2 class="wp-block-heading" id="h-very-very-optimistic"><a></a>‘Very, very optimistic’</h2>



Spanish renewable energy giant Iberdrola was similarly bullish about the road to full electrification, describing the transition away from fossil fuels as “absolutely unstoppable.”



“We are seeing that probably we are in the best moment for electrification,” Ignacio Galán, executive chairman of Iberdrola, told CNBC at WEF on Tuesday.



Galán cited soaring global demand for electrically powered data centers, low-emission vehicles as well as cooling and heating applications.



“All of those things require more electricity 24 hours a day. Our business in the United States is mostly in this area, which is networks … and the regulation depends on the state authority, so I think that is not really affected at all,” Galán said.



“Depending on the legislation, we will make more or less investment in another part of our business,” he added, referring to Trump’s energy policy.



“We are very, very optimistic about the United States and the future,” Galán said.



<h2 class="wp-block-heading"><a></a>Wind power woes</h2>



Shares of some European wind power giants fell shortly after Trump took aim at wind power plans.



Denmark’s Orsted, which recently announced a roughly $1.7 billion impairment charge on U.S. projects, dipped 4.4% on Wednesday morning, extending steep losses from the previous session.



The rapidly growing offshore wind sector has endured a torrid time in recent years, hampered by rising costs, supply chain disruption and higher interest rates.



Artem Abramov, head of new energies research at Rystad Energy, said Trump’s energy agenda essentially means the likelihood of any new offshore developments in the U.S. has fallen to zero — at least for now.



“The US currently has around 2.4 gigawatts (GW) of advanced-stage offshore wind developments that have reached final investment decision and are under construction, which are unlikely to be impacted by the order,” Abramov said in a research note published Tuesday.



“Moderate risk amid the unfavorable investment climate is present for 10.5 GW of projects which secured necessary permits but have not reached investment decisions,” Abramov said.



“The remaining 25 GW of early-stage projects are unlikely to see any progress under the current administration,” he added.



— CNBC’s Spencer Kimball contributed to this report.

108089710-1737466393786-gettyimages-1252137672-SPAIN_IBERDROLA

Renewable giants shrug off Trump’s anti-wind policies: ‘Electrification is absolutely unstoppable’

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088946-1737375722728-Davos_Promenade_2025_AI_-_Pic_1-820x462.jpg" alt="" class="wp-image-577390" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088946-1737375722728-Davos_Promenade_2025_AI_-_Pic_1-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088946-1737375722728-Davos_Promenade_2025_AI_-_Pic_1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088946-1737375722728-Davos_Promenade_2025_AI_-_Pic_1-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088946-1737375722728-Davos_Promenade_2025_AI_-_Pic_1-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088946-1737375722728-Davos_Promenade_2025_AI_-_Pic_1-1536x865.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/108088946-1737375722728-Davos_Promenade_2025_AI_-_Pic_1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Companies advertised their AI products on the Davos Promenade at the World Economic Forum 2025. Arjun Kharpal | CNBC</figcaption></figure>



The Davos Promenade in Switzerland is the focal point of the World Economic Forum’s annual meeting in the Swiss ski town.



Some of the world’s biggest companies take over cafes, shops and restaurants and build temporary meeting and event spaces for the week — and their branding often gives away what’s top of mind for business leaders.



It’s no surprise, then, that artificial intelligence dominated the space this year, given the boom in the technology, which has propelled firms to capitalize on AI interest — especially from businesses.



A poll from consultancy Accenture out on Monday revealed that 58% of execs expect generative AI solutions to be adopted at scale within the organization in 2025, up from just 37% in 2024. Generative AI is the technology that underpins applications like ChatGPT.



Several companies from Intel to Salesforce and Workday displayed AI-linked branding on the front of their spaces.



Showing on the promenade can often follow what’s happening in markets, with crypto companies have been out in force in the past. The explosion of AI branding kicked off at Davos in 2024, pushing aside crypto, at a time when ChatGPT was still gaining in popularity, while Nvidia’s stock continued to rally. Nvidia, whose chip systems are used to train huge AI models, is seen as a benchmark for investor appetite in artificial intelligence.



Advances in AI, as well as the dangers of rapidly-advancing systems, will be discussed during this year’s WEF. Artificial general intelligence — or AGI, describing AI systems that are smarter than humans — will be in focus, as well as current advances with AI agents.

108088946-1737375722728-Davos_Promenade_2025_AI_-_Pic_1

AI mania takes over Davos as the world’s biggest firms tout their offerings

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194473623-820x547.jpg" alt="" class="wp-image-577169" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194473623-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194473623-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194473623-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194473623-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194473623-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194473623-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Lesetja Kganyago, governor of South Africa&#8217;s Reserve Bank, during a Bloomberg Television interview at the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 21, 2025. The annual Davos gathering of political leaders, top executives and celebrities runs from January 20 to 24. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



DAVOS, Switzerland, Jan 21 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s economic outlook is better this year than last, but the inflation picture is more muddied as risks abound, its central bank governor said on Tuesday.



South African Reserve Bank (SARB) Governor Lesetja Kganyago told Reuters in an interview at the World Economic Forum&#8217;s annual meeting in Davos, Switzerland, that growth in Africa&#8217;s most industrialised economy could be close to 2% in 2025, versus the 1.1% growth projected for 2024.



&#8220;Depending on who is forecasting, growth varies between 1.6% and 2% (this year). We think &#8230; it would be closer to 2% than closer to 1.6%,&#8221; he told the Reuters Global Markets Forum.



Kganyago cited the formation of a broad coalition government last year as one of the key enablers of faster growth.



&#8220;The structural reform agenda has gained momentum, and it has been given impetus by this Government of National Unity with a very clear focus on taking South Africa&#8217;s economic trajectory to the next level,&#8221; he said.



The coalition that emerged after the long-ruling African National Congress lost its parliamentary majority includes the business-friendly Democratic Alliance and a host of other smaller parties from across the political spectrum.



Investors are optimistic that reforms in key sectors such as electricity, freight rail and the visa system will accelerate and lift the annual growth rate beyond the meagre 1% it has averaged over the past decade.



Kganyago warned that South Africa&#8217;s inflation outlook could be muddied by factors including protectionist policies with the return of U.S. President Donald Trump to the White House.



With other risks including the rand exchange rate, the global oil price and local food prices, there are &#8220;too many moving parts&#8221; to have a clear view on price pressures, he said.



Annual consumer inflation was at 2.9% in November, below the SARB&#8217;s target range of 3%-6%, although it is expected to rise in December and this year average about 4.5%, the midpoint of the range which the bank aims for.



The SARB cut interest rates at its last two meetings of 2024, and many analysts expect a further cut at its first announcement of the year next Thursday.



(Reporting by Divya Chowdhury in Davos; Additional reporting and writing by Kopano Gumbi in Johannesburg; Editing by Alexander Winning and Alex Richardson)

South African growth outlook has improved but inflation risks abound, central bank says at Davos

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194135899-820x547.jpg" alt="" class="wp-image-576815" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194135899-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194135899-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194135899-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194135899-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194135899-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/GettyImages-2194135899-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Attendees in the Congress Center ahead of the World Economic Forum (WEF) in Davos, Switzerland, on Sunday, Jan. 19, 2025. The annual Davos gathering of political leaders, top executives and celebrities runs from January 20 to 24. Photographer: Hollie Adams/Bloomberg via Getty Images</figcaption></figure>



LONDON — It’s that time of year when the great and the good gather for the annual World Economic Forum in Davos, Switzerland.



A slew of heads of state, politicians and business moguls are set to attend the four-day event in the Alpine resort — but what might be more telling is which leaders are sidestepping the forum.



While Donald Trump, who is being inaugurated as U.S. president on Monday, is expected to address the forum via live video link on Thursday, a number of key leaders will be completely absent from the event.



These include Indian Prime Minister Narendra Modi and Chinese President Xi Jinping, as well as French President Emmanuel Macron, Italy’s leader Giorgia Meloni and British Prime Minister Keir Starmer.



Of the Group of Seven (G7) industrialized nations — which includes the U.S., Europe’s biggest economies, Canada and Japan — the only head of state attending the summit in person is outgoing German Chancellor Olaf Scholz.



WEF says this year’s event — the 55th annual forum, which runs from Monday to Thursday — will convene close to 3,000 leaders from over 130 countries, with the gathering “demonstrating the critical need for dialogue in an increasingly uncertain era.” It notes that 350 government leaders, including 60 heads of state and governments, “will gather in Davos-Klosters to address pressing challenges and shape emerging opportunities.”



The theme of the event is “Collaboration for the Intelligent Age,” with the agenda focusing on five key areas: reimagining growth, industries in the intelligent age, investing in people, safeguarding the planted and rebuilding trust.



Not all world leaders will be there to discuss these issues, however.



“The leaders of Brazil, of China, of India, who gave the keynote speeches 10 years ago, are not there now. Russia has not been welcomed for some years now, Keir Starmer is not going to be there. Macron’s not going to be there,” Jan&nbsp;Aart&nbsp;Scholte, professor of global transformations and governance challenges at Leiden University, told CNBC Thursday.



“True, the prime minister of Spain is going to be there and there are a couple of others, but the general picture of the heads of state, of government that are there is that it’s not the big players. I think if you went through a list of the G20, it’s going to be a small minority [who are attending],” he said.



<h2 class="wp-block-heading" id="h-collective-effort"><a></a>Collective effort</h2>



There is often no official reason given for a lack of participation in WEF, but pressing domestic problems — ranging from slowing economic growth to political crises — are known to keep heads of government at home.



In recent years, there has also been some ambivalence over attending an event that has been accused of being elite and out-of-touch.



The forum has repeatedly stated that it provides a space where stakeholders from across business, government, academia, civil society, media and the arts can “meet on a global, impartial, not-for-profit platform.”



These people, it says, “come together to find common ground and seize opportunities for positive change on large global issues.”



In a statement to CNBC on Monday, WEF said that while it always values the presence of key global leaders, “the Annual Meeting’s impact and ability to drive meaningful dialogue, and action is defined by the collective efforts of a broad and representative community.”



This year’s program, the forum continued, “is designed to address the most pressing global challenges, including economic fragmentation, technological transformation, and climate action.”



“We recognize that global leaders face a wide range of commitments and responsibilities, and their absence does not diminish our ongoing engagement with their respective governments and institutions throughout the year,” WEF added.



Who will be there A number of big names will still join this year’s summit — an event that began back in 1971 under the aegis of Klaus Schwab, who remained executive chairman of the event until the start of this year.



Ding Xuexiang, the vice premier of China, Ukraine’s President Volodymyr Zelenskyy, Javier Milei, the prime minister of Argentina and Cyril Ramaphosa, the president of South Africa, are all due to hold speeches in Davos this week.



The head of the European Commission, Ursula von der Leyen, will likewise attend, as will the leaders of global organizations such as the International Monetary Fund, United Nations, World Health Organization and the World Trade Organization.



Sven Smit, a senior partner at strategic WEF partner&nbsp;McKinsey&nbsp;&amp; Company said in online comments that it would be a priority for participants to “understand what is on the mind of the leaders who are at Davos.”



“You can’t fully predict it, there are themes out there that people suggest, they range from growth to sustainability, but what distils as a Davos theme is not fully predictable and that’s the interesting part,” Smit said.



However, many of the Western institutions in attendance have, in recent years, found themselves on the wrong side of a push against globalization by populist leaders like Trump, and countries like Russia and China.



WEF, too, has fallen foul of this anti-establishment trend, Scholte noted, and while the presence of leaders like Trump might not have been sought out in the past, there is now an acceptance that the world has changed.



“I don’t think that the promoters of a liberal, open world economy speak with quite as much disdain, let’s say, of contrary forces and views as they might have done, say, before the global financial crisis,” he said.



“I think there’s a bit more modesty that, no, it sometimes doesn’t fully work. And no, we haven’t always taken sufficient account of those who feel excluded from this.”



Nonetheless, he stressed that WEF was still a draw for many business and political leaders.



“There are various indicators that a site like the World Economic Forum isn’t as strong a magnet as it might have been a couple of decades ago,” Scholte said. “But the idea that it’s no longer a magnet, and the idea that it also doesn’t have certain areas within world economic governance where it can still be very strong, I think that would be wrong.”

Davos Prepares To Host World Economic Forum (WEF) 2025

As WEF gets underway, the list of world leaders not attending Davos speaks volumes

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/DALL·E-2025-01-15-14.10.12-A-powerful-landscape-artwork-depicting-the-complex-interplay-of-global-risks-for-2025-and-beyond.-The-scene-combines-three-themes_-1-A-representation-820x469.webp" alt="" class="wp-image-575313" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/DALL·E-2025-01-15-14.10.12-A-powerful-landscape-artwork-depicting-the-complex-interplay-of-global-risks-for-2025-and-beyond.-The-scene-combines-three-themes_-1-A-representation-820x469.webp 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/DALL·E-2025-01-15-14.10.12-A-powerful-landscape-artwork-depicting-the-complex-interplay-of-global-risks-for-2025-and-beyond.-The-scene-combines-three-themes_-1-A-representation-300x171.webp 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/DALL·E-2025-01-15-14.10.12-A-powerful-landscape-artwork-depicting-the-complex-interplay-of-global-risks-for-2025-and-beyond.-The-scene-combines-three-themes_-1-A-representation-158x90.webp 158w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/DALL·E-2025-01-15-14.10.12-A-powerful-landscape-artwork-depicting-the-complex-interplay-of-global-risks-for-2025-and-beyond.-The-scene-combines-three-themes_-1-A-representation-768x439.webp 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/DALL·E-2025-01-15-14.10.12-A-powerful-landscape-artwork-depicting-the-complex-interplay-of-global-risks-for-2025-and-beyond.-The-scene-combines-three-themes_-1-A-representation-1536x878.webp 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/DALL·E-2025-01-15-14.10.12-A-powerful-landscape-artwork-depicting-the-complex-interplay-of-global-risks-for-2025-and-beyond.-The-scene-combines-three-themes_-1-A-representation.webp 1792w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Image by DALL·E &#8211; a powerful landscape artwork depicting the complex interplay of global risks for 2025 and beyond. The scene combines three themes.</figcaption></figure>



The release of the 20th edition of the World Economic Forum’s Global Risks Report paints a sobering picture of the challenges shaping our collective future. With an increasingly fractured global landscape, the report highlights how escalating geopolitical, environmental, societal, and technological threats are testing the resilience of international systems.



<h2 class="wp-block-heading" id="h-the-top-risks-of-2025-a-world-in-crisis">The Top Risks of 2025: A World in Crisis</h2>



The report identifies state-based armed conflict as the most pressing immediate global risk for 2025, with nearly 25% of respondents ranking it as their top concern. These conflicts, fueled by growing geopolitical tensions, signal a world grappling with heightened instability.



<figure class="wp-block-image"><img decoding="async" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WEF_GRR25_Shareable_Current_risk_landscape-1-800x800.jpg" alt="" class="wp-image-575314"/><figcaption class="wp-element-caption">Source: World Economic Forum, Global Risks Perception Survey 2024-2025</figcaption></figure>



Misinformation and disinformation, which retain their position as the top short-term societal risks for the second consecutive year, continue to undermine societal trust and governance. As these risks erode cohesion within and between nations, they compound the challenges posed by other immediate threats, such as extreme weather events, societal polarization, and cyber-espionage.



<h2 class="wp-block-heading" id="h-environmental-challenges-a-long-term-crisis">Environmental Challenges: A Long-Term Crisis</h2>



Looking beyond immediate concerns, environmental risks dominate the 10-year horizon. From extreme weather events to biodiversity loss, ecosystem collapse, and critical changes to Earth systems, the environmental outlook reflects the urgent need for systemic interventions. Pollution, ranked sixth as a short-term risk, highlights the pervasive impact of air, water, and land pollutants on health and ecosystems.



&#8220;Extreme weather events feature prominently across immediate, short-term, and long-term horizons, underscoring their central role in the global risk landscape,&#8221; notes the report. With climate change accelerating the frequency and intensity of natural disasters, this remains a critical area for global action.



<h2 class="wp-block-heading" id="h-technology-s-dual-edge">Technology’s Dual Edge</h2>



While technological advancements offer significant opportunities, the report underscores the potential dangers. Misinformation, disinformation, and the adverse outcomes of AI technologies are identified as major long-term risks. As these tools become more pervasive, their misuse could exacerbate societal divisions and erode trust in institutions.



<h2 class="wp-block-heading" id="h-a-stark-outlook-declining-optimism-and-rising-turbulence">A Stark Outlook: Declining Optimism and Rising Turbulence</h2>



Over 900 experts surveyed for the report express growing pessimism about the world’s trajectory. Nearly two-thirds of respondents foresee a turbulent or stormy landscape by 2035, shaped by intensifying environmental, societal, and technological challenges.



Short-term projections aren’t much brighter. Over half of respondents anticipate instability within the next two years, driven by a breakdown in international cooperation and rising societal fractures, such as inequality and polarization. Vulnerabilities such as illicit economic activity, mounting debt burdens, and the concentration of strategic resources further compound the global risk outlook.



<h2 class="wp-block-heading" id="h-the-call-for-collective-action">The Call for Collective Action</h2>



&#8220;Rising geopolitical tensions and a fracturing of trust are driving the global risk landscape,&#8221; said Mirek Dušek, Managing Director, World Economic Forum. &#8220;In this complex and dynamic context, leaders have a choice: to find ways to foster collaboration and resilience, or face compounding vulnerabilities.&#8221;



The report calls for urgent, collective action to address these challenges. Key recommendations include:



<ul class="wp-block-list">
<li>Reinforcing Multilateral Institutions: Strengthening global frameworks to manage shared challenges effectively.</li>



<li>Promoting Dialogue: Encouraging open communication among nations to rebuild trust and reduce polarization.</li>



<li>Prioritizing Sustainability: Accelerating efforts to mitigate environmental risks and adapt to climate change.</li>



<li>Harnessing Technology Responsibly: Developing frameworks to manage the risks associated with AI and other emerging technologies.</li>
</ul>



<h2 class="wp-block-heading" id="h-a-decisive-decade">A Decisive Decade</h2>



As divisions deepen and global systems face unprecedented strain, the coming decade is pivotal. &#8220;From conflicts to climate change, we are facing interconnected crises that demand coordinated, collective action,&#8221; emphasizes Mark Elsner, Head of the Global Risks Initiative at the World Economic Forum. &#8220;Renewed efforts to rebuild trust and foster cooperation are urgently needed. The consequences of inaction could be felt for generations to come.&#8221;



In a world where 64% of experts anticipate a fragmented global order marked by competition among powers, the report urges leaders to resist the temptation to turn inward. Instead, nations must prioritize dialogue, strengthen international ties, and foster collaboration to navigate these complex risks. By doing so, humanity can chart a path toward a resilient, sustainable, and inclusive future.

DALL·E 2025-01-15 14.10.12 – A powerful landscape artwork depicting the complex interplay of global risks for 2025 and beyond. The scene combines three themes_ 1) A representation

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