The G20 summit in London must deliver solutions for financial stability, the SA Chamber of Commerce and Industry (SACCI) said on Thursday.

"Global financial stability is under threat more than ever and the summit, although considered a talk shop, has to come up with solutions this time," said SACCI CEO Neren Rau.

"We don't want theoretical solutions," he told a quarterly business review in Johannesburg.

The reform of international institutions such as the World Bank and the International Monetary Fund (IMF) should be high on the G20's agenda, he said.

"South African wants these institutions to be more inclusive of developing countries — and SACCI supports that."

However, the reform of these institutions was not just about increasing representation.

"The World Bank and the IMF should become early warning mechanisms — they should have warned us about the global financial crisis — they should have had a better understanding of developments," Rau said.

SACCI would like to see greater productivity and responsiveness from these institutions "which must be communicated to the world and not internalised".

Rau said SACCI also wanted to see the G20 come up with inclusive strategies that took Africa into account.

"We don't want strategies that help some countries only — and South Africa must have a strong voice in solutions."

South Africa, Africa's only G20 member, had been "modest" in its response to the global crisis.

"SACCI expected more of a response when Minister Trevor Manuel read his Budget earlier this year.

"Small and medium enterprises have communicated to SACCI how little the budget assisted them," Rau said.

He expected any G20 stimulus plan to be robust and forward-looking as well as flexible and responsive — and the plan had to focus on business.

Rau said protectionism could be expected as a response to in any global financial crisis.

"If you're hit, you try to defend yourself. however, once that instinctive phase is over, you have to lower protectionist barriers in the interests of long-term trade," he said.

Rau added that South Africa was in a position to advise the G20 when it came to co-ordinated international regulatory reform.

"We have stuck to our guns when it comes to regulation. Our regulations such as exchange control came through to save us," Rau said.

The G20 comprises the seven superpowers — Britain, Canada, France, Italy, Japan, Germany, and the United States.

Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, South Africa, South Korea and Turkey make up the other members, with the European Union counting as the 20th member.

Sapa

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