Minister Solly Malatsi: Second meeting of the Digital Economy Working Group and Task Force on AI

A Historic Moment for Africa and the G20

Esteemed colleagues, honored guests, it is my great privilege to welcome you to the G20 Digital Economy Working Group and the Task Force on Artificial Intelligence, Data Governance and Innovation.

We gather here in Gqeberha, on the shores of the Eastern Cape, for a historic moment – the first time an African nation holds the G20 Presidency. We embrace this responsibility on behalf of our country, our continent and the broader Global South.

We aim to leverage our G0 Presidency, more so to ensure the digital revolution delivers tangible progress for everyone, in every corner of the world.

The digital economy is no longer just a sector – it is the backbone of modern society, a catalyst for development, and a key driver of economic and social transformation.

Yet we must also recognize that this transformation comes with profound challenges. Our task today is to ensure that digital inclusion leads to equitable and just outcomes for all humanity.

We are here to open these meetings with a shared resolve to shape a digital future where no one is left behind.

South Africa’s Vision: Inclusion, Equity, and Opportunity for All

South Africa’s G20 Presidency has set inclusion and equity at the heart of the digital agenda. We are guided by the African philosophy of Ubuntu – “I am because we are.”

This wisdom reminds us that our destinies are interconnected. In the digital age, Ubuntu reminds us that digital progress cannot be measured by individual gain alone. If billions remain offline, excluded from knowledge and opportunity, then our collective advancement is incomplete.

As the first African country to lead the G20, we carry the voices of developing nations that have for too long been on the periphery of technological revolutions.

We are determined to place the Global South at the center of shaping a just digital future.

Our priorities resonate strongly with those championed by previous G20 presidencies of fellow developing nations – Indonesia, India, and Brazil.

Indonesia, during its 2022 presidency, stressed the importance of digital connectivity and post-pandemic digital recovery, under the theme “Recover Together, Recover Stronger,” emphasizinginclusive transformation and digital literacy.

India’s 2023 presidency took bold steps to promote digital public infrastructure as a global good, launching a Global Digital Public Infrastructure Repository to share open technological solutions and
knowledge with the world.

Brazil’s 2024 presidency carried this momentum forward, focusing our work on digital inclusion, universal and meaningful connectivity, inclusive digital public infrastructure, and AI for sustainable development and inequality reduction.

South Africa’s vision is to consolidate and advance this developing-country digital agenda, moving from consensus to collective action.

We will do so by focusing on four key pillars:

• bridging the digital divide with meaningful connectivity,
• building inclusive digital public infrastructure,
• nurturing innovation ecosystems for local development,
• and championing ethical AI that respects our diverse languages, cultures, and values.

These themes are deeply interconnected, and together they form the foundation of a people-centered digital future.

1. Meaningful Connectivity: Bridging the Digital Divide

Meaningful connectivity to the internet has become a necessity, not a luxury. Yet the stark reality is that billions of people remain unconnected in today’s world.

According to the International Telecommunication Union, roughly 2.9 billion people – still don’t have internet access at all.

And while most of these individuals live within range of mobile broadband networks, they remain offline due to multiple factors ranging from high data costs, lack of affordable smart devices and limited digital skills.

Infrastructure alone is no longer enough; the real barriers are economic, educational, and linguistic.

And they demand our immediate collective attention.

The socio-economic benefits of closing the digital divide are enormous.

According to the GSMA, bringing the currently offline population onto the internet could add a staggering $3.5 trillion to the global economy by 2030, with 90% of the benefits flowing to developing countries.

We cannot allow a new form of digital inequality to take hold in our world. We need to unite our efforts, North and South, public and private, to invest in connectivity for all.

This means mobilizing financing for digital infrastructure, sharing innovations to lower costs, and collaborating on policies to make internet access affordable for the poorest.

2. Digital Public Infrastructure: Building the Foundations for Inclusion

Connectivity alone does not guarantee empowerment. It must be underpinned by inclusive and securesystemsthat deliveressentialservices— what we term Digital Public Infrastructure (DPI).

This includes platforms for e-government, digital identity, electronic payments, public broadband, and open digital goods.

These are the core infrastructure of modern governance and service delivery. Recognizing this, South Africa and the G20 have identified DPI as a strategic priority for advancing inclusion and enabling innovation.

We take inspiration from recent successes: India’s leadership in deploying population-scale DPI, from the Aadhar digital ID to the UPI payments system, has shown how digital public goods can radically expand financial inclusion and service delivery.

South Africa intends to build on this legacy. We are championing the creation of a DPI Innovation Accelerator, which will identify and showcase innovative digital public infrastructure implementations from all around the world – including, importantly, those from Africa.

By sharing knowledge on open-source platforms, digital ID systems, e-health and e-learning solutions, we can help countries leapfrog and tailor these tools to their local needs.

Crucially, digital infrastructure must also be secure and trustworthy. As we digitize vital services, we must invest in cybersecurity and data protection to safeguard citizens’ data and privacy.

Building public trust is non-negotiable – people will only embrace digital services if they are confident their information is safe and that they can reliably access services when needed.

Thus, our discussions must also touch on creating resilient and secure digital infrastructure across G20 countries, in partnership with initiatives like the ITU’s Digital Infrastructure Investment Initiative.

3. Inclusive Innovation Ecosystems: Empowering Local Entrepreneurs and Youth

South Africa believes strongly in cultivating inclusive innovation ecosystems where micro, small and medium enterprises (MSMEs) and startups can thrive and where new ideas from all segments of society can flourish.

These MSMEs are the backbone of our economies and the lifeblood of our communities. Across the developing world, and especially in Africa, micro-and small enterprises account for the majority of jobs and livelihoods, often in the informal sector.

They are engines of creativity and resilience. Yet too often, they operate on the margins of the digital economy, held back by limited access to capital, technology, and markets. Our mission is to bring them into the center of the digital revolution.

We propose that G20 members share strategies on supporting start-ups and MSMEs – from startup financing initiatives to innovation hubs and tech parks, from simplifying regulatory burdens to providing mentorship networks.

Let us commit to growing the digital innovation ecosystem in all our countries. As we discuss policy frameworks, we must also consider the idea of an innovation fund or facility to support digital entrepreneurship in underserved regions, an idea that has been floated with the notion of a possible global fund for AI and digital innovation.

If we want a truly global digital economy, we must ensure that innovation knows no borders – that brilliant ideasfrom Africa, Asia, or Latin America can find the resources and support to grow.

4. Ethical and Inclusive AI: Shaping a Human-Centered Future

Finally, let me address one of the most consequential issues before us: the governance of Artificial Intelligence in an inclusive, ethical manner.

Indeed, AI is already changing how we work, communicate, and make decisions. Our task is to ensure AI changes things for the betterment of all people, not just a few.

We must actively direct AI development to be human-centric, designed to reflect our diversity, and deployed to close divides, not widen them.

A core theme under South Africa’s presidency is “AI for sustainable development and inequality reduction,” echoing the focus Brazil set in the DEWG last year. This means we look at AI not just from a technology perspective, but from the standpoint of social impact.

We must investigate how AI can help us achieve the Sustainable Development Goals. How can it  improve healthcare, education, 
agriculture, and governance.

And equally, how do we prevent AI from causing harm – whether through bias, misinformation, or concentration of power.

We know that AI is only as good as the data and algorithms it is built on, and currently, both of these have serious gaps. One glaring gap is the linguistic and cultural diversity deficit in AI systems.

There are over 7,000 languages spoken in the world, yet most AI models and digital content are trained on a tinyfraction of these – predominantly English and a handful of others.

This linguistic inequity is not just a cultural loss; it’s a practical barrier that threatens to exclude billions from the AI-driven digital economy.

South Africa urges the G20 to support initiatives that develop AI in low-resource languages and share data and tools to make this possible.

Beyond language, ethical AI governance requires addressing issues of bias, transparency, and accountability. We have seen instances of AI algorithms that exhibit racial or gender bias in hiring, lending, or policing. These are systemic harms we have to root out.

During our Task Force discussions, we must consider how G20 nations can share best practices on AI governance, including regulatory approaches and standards to ensure AI safety and trustworthiness.

I am pleased to highlight that under our Presidency, we are working with partners to launch an “AI for Africa” initiative. This initiative will seek to realize the talent on the continent, build critical AI skills, and create AI-ready datasets and infrastructure for African and other developing countries.

The AI for Africa effort, which we plan to showcase later in our G20 year, will pool support from G20 members, international organizations like UNESCO andtheITU, andour own African institutions, toensurethat Africacontributes to and shapes global AI governance.

In doing so, we also contribute to global public good – an AI ecosystem that is more rich, diverse, and beneficial to all humanity.

Conclusion: Seizing the Moment

As we open this G20 Digital Economy Working Group and AI Task Force meeting, let us all recognize the immense stakes of this moment.

Digital transformation is rewriting social contracts, redrawing the lines of economic opportunity, and even redefining how power is exercised. It is up to us to ensure this transformation is steered towards the common good.

The digital divide, if unaddressed, will become the new face of global inequality. But if addressed through cooperation, the digital revolution can drive unprecedented inclusion and equity.

Let us recognize that no single government or sector can do this alone. The private sector, academia, civil society, technical communities – all are vital partners in this journey. We must harness the expertise of our knowledge partners and the passion of our innovators.

Let our deliberations be fruitful, and let's rise to meet the urgency and magnitude of this moment. Together, let us usher in a new era of digital opportunity for all.

Thank you

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