Brende: Digital trade & services advancing at faster pace

The President of the World Economic Forum, Børge Brende, recently spoke with CNBC Africa on the side-lines of the G20 Finance Ministers and Central Bank Governors Meeting in Cape Town, South Africa. Brende shared insights on the importance of collaboration amidst geopolitical uncertainties and the changing landscape of global trade. As the world faces challenges such as trade tensions, digital transformation, and geopolitical shifts, Brende emphasized the need for businesses and governments to work together to navigate these complexities. During the interview, Brende highlighted the WEF's recent report, which warned of a potential 5% contraction in global GDP, equivalent to $15.7 trillion, if fragmentation and uncertainty persist. Despite these challenges, Brende remains optimistic about global growth, with expectations of more than 3% growth this year. He stressed the importance of preparing strategies to mitigate the impact of geopolitical factors on the economy. One of the key themes discussed was the shift in global trade dynamics towards digital trade and services. Brende noted that traditional trade in goods has plateaued, while digital trade and services are driving growth in many economies. He urged countries to adapt to this new reality by investing in digital infrastructure and upskilling their workforce. When asked about his advice for the South African government, Brende acknowledged the country's efforts to revitalize economic growth. He suggested investments in infrastructure, energy supply, and water management to foster sustainable growth. Brende believes that by implementing structural changes and focusing on skill development, South Africa could achieve a growth rate of 3% in the future. Collaboration was a key point of discussion, with Brende underscoring the importance of partnerships between businesses and governments. He emphasized that tackling global challenges such as pandemics, climate change, and cybercrime requires collective action. Despite the rise of nationalism and unilateral measures, Brende reiterated the necessity of fostering collaboration to address pressing global issues. In navigating the current environment, Brende advised businesses to focus on improving their operations, investing in human capital, and leveraging new technologies like Gen AI to boost productivity. He acknowledged the complexity and uncertainty faced by companies in the current trade landscape but encouraged them to stay committed to ethical business practices. As the World Economic Forum continues its mission to foster collaboration and address global challenges, Brende's insights serve as a reminder of the importance of unity and cooperation in a rapidly evolving world.