As South Africa prepares to host the prestigious G20 Summit later next year, the National Treasury has set stringent directives for government institutions involved in the event. In an effort to maintain fiscal prudence, the Treasury has advised these institutions to prioritise high-impact initiatives while reducing costs. This approach comes amid a tightening fiscal environment, emphasising a requirement for funding activities primarily through reprioritisation and realignment of existing budget baselines.

Issued in November 2024, the Treasury's instruction outlined the G20 Sponsorship Framework. This framework establishes the necessary processes for the solicitation, acceptance, disbursement, management, and evaluation of sponsorships throughout South Africa's G20 Presidency.

The recent G20 Funding Guidelines, shared last week, reinforce the directive, revealing that departments unable to finance their G20 activities through reprioritisation could seek supplementary funding via the 2024 Adjusted Estimates of National Expenditure, which is designed to offset any G20 funding shortfalls for the 2024/25 period.

The 2025 fiscal framework has also acknowledged provisional allocations for G20 funding across selected departments, to be formally announced in the upcoming 2025 Budget. The Treasury highlighted that allocations will focus on essential functions such as policing and communication—areas deemed critical for state security, public order, and the consistency of messaging leading up to the G20 Summit.

A major focus will be on coordination, with the Department of Police exclusively handling policing functions.

Meanwhile, a collaborative effort will be required among multiple agencies, including the Government Communication and Information System, the Department of International Relations and Cooperation, National Treasury, and the Presidency, to manage communication effectively. This will entail supplementary funding to enhance each department's existing baseline allocations for G20-related activities.

In a bid to streamline fundraising efforts, a G20 Sponsorship Committee has been established. This committee will oversee the mobilisation of external resources through sponsorships, and departments are encouraged to consult the committee for potential sponsorships before tapping into appropriated funds.

The Treasury has underscored the importance of sound financial management and due diligence in these sponsorship arrangements, cautioning government institutions to evaluate potential conflicts of interest and risk exposures as part of their processes.

Prioritisation will also extend to the venues used for G20 activities. Institutions engaging in sponsorship for venues and conferencing facilities must favour state-owned facilities unless those are unsuitable. The selection of meeting locations should be assessed based on several cost-effective criteria, including size, capacity, and transportation options.

The financial responsibilities for the G20 summit reflect a clear delineation of costs. The South African government, as the host nation, will be accountable for reasonable expenses associated with foreign ministers and heads of state. This encompasses accommodation, travel logistics such as executive vehicles, and related expenditures in accordance with established host country agreements and G20 protocols.

Furthermore, while delegates from foreign governments and organisations will bear their own travel and accommodation expenses, South African government delegates will need to manage their travel arrangements independently.

South African Airways (SAA) is working in partnership with the state as the official air travel logistics provider for the G20 Presidency. Transfers to and from airports will remain the financial responsibility of the foreign delegates, with costs to be covered by the sending entities, underscoring the self-reliance expected from each party involved.

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