4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.

 
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4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE,
UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
The Fourth Industrial Revolution
                       South Africa partnership (4IRSA)
                        is an alliance between partners
                           from the public and private
                      sectors, academia and civil society.
                        The 4IRSA partnership seeks to
                         develop an inclusive, coherent,
                       national response to the Fourth
                         Industrial Revolution for South
                            Africa, based on research.

                                    4IRSA’s approach is:

 Human-centered        Inclusive and diverse         Fact-based           Progressive, coherent
(not tech-centered)                                                         and convergent

      Open                  Supported           Facilitated and curated        Structured
4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
Contents
                                                                          Our Journey                           4
                                                                          Our Commitments                       6
                                                                          Our Governance Structure              7
                                                                          Our Purpose                           7
                                                                          Our Partners                          8
                                                                          Our Themes                            10
                                                                          Our Roadmap                           12
                                                                          Our Sector Workshops                  14

                                                                          Report: Public Sector Workshop        16

                                                                          Report: ICT Sector Workshop           18

                                                                          Report: Agriculture, Foodstuffs and
                                                                          Related Retail Services Workshop      20

                                                                          Report: Heavy Industry, Mining,
                                                                          Infrastructure and Manufacturing
                                                                          Sector Workshop                       22

                                                                          Report: Business and Financial
                                                                          Services Sector Workshop              24

4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE,
                                                                          Emerging Questions in the Lead Up
UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.   to the Digital Economy Summit         26

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4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
Our Journey
                                                                                                 10 June 2018
The 4IRSA initiative was founded in June 2018      Department of Telecommunications and
in response to a public call to action by Telkom   Postal Services (DTPS), has become an         Cyril Ramaphosa - President, African National Congress (ANC)
Group CEO Sipho Maseko, who was then               integral part of the initiative.              Mmusi Maimane - Leader, Democratic Alliance (DA)
challenged by President Cyril Ramaphosa to                                                       Bantu Holomisa - President, United Democratic Movement (UDM)
take the process forward.                          Deloitte has come on board as a partner and   Julius Malema - Commander in Chief, Economic Freedom Fighters (EFF)
                                                   discussions are ongoing with several other    Prince Mangosuthu Buthelezi - President, Inkatha Freedom Party (IFP)
The vice-chancellors of the universities of        industry players to become involved. They     Mosiuoa Lekota - President, Congress of the People (COPE)
the Witwatersrand, Johannesburg and Fort           include Vodacom and Hauwei.
Hare responded to the call and with Telkom,                                                      Dear Sirs,
formed the initial 4IRSA partnership.              President Cyril Ramaphosa and the South
                                                   African Cabinet have endorsed 4IRSA and the   Last year, I met with each of you to discuss the Fourth Industrial Revolution.
Subsequently, the South Af rican                   Digital Economy Summit being hosted by        This week we were informed that our economy shrunk more than 2% in the first
government, represented through the                the initiative.                               quarter of 2018, the worst decline in almost a decade. This should jolt us into action.
                                                                                                 One way of doing this is to release spectrum to unlock value and set the country on a
                                                                                                 trajectory to participate in the Fourth Industrial Revolution.

                                                                                                 Like the rest of the world, South Africa is changing before our very eyes. New devices,
                                                                                                 solutions and apps are introduced almost daily. This requires new skill and businesses
                                                                                                 that impact on how we interact with friends and family. This trend is irreversible.

                                                                                                 The digital economy brings unparalleled efficiencies to the agriculture, manufacturing,
                                                                                                 retail and mining sectors globally. It demands investment in high-value skills, matching
                                                                                                 technology, abundant and advanced ICT infrastructure. The digital economy is now a
                                                                                                 major contributor to the gross domestic products of advanced economies.

                                                                                                 The question is: what should South Africa do to participate in this economy and avoid
                                                                                                 the long-term adverse effect of exclusion?

                                                                                                 We must urgently discuss the digital economy so that we develop and distribute
                                                                                                 available resources to unlock benefit for all South Africans. Resources like spectrum,
                                                                                                 which is a high impact, finite and scarce national resource, are at the heart of unlocking
                                                                                                 value across all sectors in the digital economy. We need to use it and other resources at
                                                                                                 our disposal, to ensure that we enable long-term economic growth.

                                                                                                 Let’s have a national conversation for the benefit of South Africa.

                                                                                                 Kind Regards

                                                                                                 Sipho Maseko
                                                                                                 Group CEO

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4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
Our Commitments                                                                                       Our Governance Structure
4IRSA is committed to helping to shape a            incomplete, and given the interconnectedness      A steering committee comprising of the               entities where specialist skills are required.
national response to 4IR in South Africa. It has    of impacts of 4IR, it is unlikely to achieve      vice-chancellors of the universities and senior
to be a coherent response so that the manifold      positive sustainable outcomes. And finally, it    representatives of each of the partners meets        A Secretariat has been established to give
and diverse elements of the response, executed      needs to be a response, not merely a plan. The    regularly to shape the agenda and framework.         effect to the 4IRSA strategy. Objectives
by various role-players, are mutually supportive,   plan needs to be put into action, with progress   It provides direction to an operational              and consideration are being given to
complementary and non-duplicative. If there is      and outcomes measured against the plan, and       committee, which includes members drawn              the institutionalisation, capacitation and
no coherence to a national response, it will be     emphasis on action, not just ideation.            from the partner institutions and external           organisational structure of the Secretariat.

Cabinet
Statement
15 FEBRUARY 2019

The global move towards technology
inspired by the 4IR brings with
it new opportunities to build our
society and economy. To remain at
the forefront of new technological
trends, the country will host the
Digital Economy Summit in 2019.

The Summit is convened under
the banner of 4IR South Africa
(4IRSA), a partnership between the
Department of Telecommunications
and Postal Services, Telkom, the
University of the Witwatersrand, the
University of Johannesburg and the                                                                    Our Purpose
University of Fort Hare.
                                                                                                      4IRSA serves to stimulate and facilitate an          – a 4IRSA partner. 4IRSA recognises that
4IRSA aims to address the challenges                                                                  inclusive dialogue to shape a coherent national      there are several 4IR-related processes and
facing South Africa in the digital                                                                    response to 4IR in South Africa, and how we          dialogues underway in the public and private
age so as to find a coherent and                                                                      can work with the rest of the continent on the       sectors, academia, labour and society at large.
collective response for the country.                                                                  digital revolution. It aims to complement and        However, these are in the main, fragmented,
                                                                                                      support other national activities relating to 4IR,   eclectic, and divergent – essentially a silo
On 20 June 2019, President Cyril                                                                      most notably the Presidential Commission on          approach.
Ramaphosa was clear in his State of                                                                   the Fourth Industrial Revolution.
the Nation Address that to bolster                                                                                                                         4IRSA aims to provide a common platform
economic growth, create jobs and                                                                      The commission is assisting the government           to connect these entities and processes
close the inequality gap, 4IR would                                                                   on how to take advantage of 4IR and its              through shared conversations, thereby
have to factor in many sectors of                                                                     Deputy Chairperson is Prof. Tshilidzi Marwala,       facilitating progressive coherence towards
the economy.                                                                                          who is from the University of Johannesburg           complementarity on a 4IR strategy.

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4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
Our Critical Constituencies
                                                                                                     Our Difference
The 4IR will impact on every part of the economy and society and it is therefore essential for all   4IRSA recognises that many of the
constituencies to be part of the dialogue that will formalise South Africa’s collective response.    debates relating to 4IR are not sufficiently
                                                                                                     fact-based, frequently anecdotal and
                                                                                                     often emotional. The 4IRSA partnership,
                                                                                                     underpinned by the participation of the
                                                                                                     universities, aspires to provide a strong
                                                                                                     research foundation based on facts,
                                                                                                     rooted in the South African context,
                                                                                                     around which the complex discourses of
                                                                                                     a response to 4IR can develop.

                                                                                                        Why 4IR?

                                                                                                       There is sometimes debate
                                                                                                       whether the term 4IR is a

Our Partners
                                                                                                       particular partisan perspective or
                                                                                                       passing phase and that one could
                                                                                                       equally locate the process around
                                                                                                       different models, for example
Now that 4IR has been recognised in South Africa as a way of achieving
                                                                                                       Japan’s “Society 5.0”, or perhaps
positive change on the economy and society, it is vital for all constituencies                         “Digitalisation”, another common
to play a part in formulating South Africa’s response. Specifically, 4IRSA                             term used to describe the process
has sought, and continues to seek, active participation from:                                          of dramatic change to the
                                                                                                       nature and conduct of business
•   government (a broad cross section of departments and                                               and its impact in the market
    institutions),                                                                                     and society. Most contributors,
•   industry (key players and representative associations                                              however, would concur that the
                                                                                                       term 4IR has significant currency
    and professional bodies),
                                                                                                       at the moment and that it is
•   small businesses and entrepreneurs,                                                                an established concept which
•   labour,                                                                                            provides for a departure point
•   academia,                                                                                          of shared understanding and
•   civil society,                                                                                     meaning. The 4IRSA Partnership
•   relevant international entities like the World Economic                                            has therefore decided to use the
                                                                                                       term 4IR as the initial descriptor
    Forum and the International Labour Organization, and
                                                                                                       of our departure point.
•   the media.

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4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
Our Themes
In order to facilitate a coherent dialogue, 4IRSA has adopted a
thematic framework comprising the following elements:

     Competitiveness,                      Employment and the                Society, State and                Opportunities                    Critical Success
     Concentration                         Future of Work                    Citizen                                                            Factors
     and Inequality

     One of the key objectives             The opportunities and             The 4IR, with the blurring of     The 4IR holds the promise        Critical success factors will need
     of a response to the 4IR is           challenges associated with        the so-called cyber-physical      of enabling emerging             to be delivered. These must be
     to ensure that South Africa           technological disruption,         boundaries, has the potential     economies to “leapfrog”          identified, prioritised, quantified
     enhances its competitiveness          is its impact on the nature       to radically reshape the way      hurdles to accelerate            and planned, and they will have
     in the global digital economy.        of work, changing skills          society, state and citizen        development. It is critical      to be monitored and assured.
     This entails dissolving               requirements and changing         interact. This applies equally    that this is realised through
     apparent contradictions, in           employment patterns and           to the businesses within that     identifying credible high        These will include:
     simultaneously creating South         models. Our response to the       society and their employees       impact opportunities for
     African “superstar firms”,            4IR needs to be based on a        (their “business citizens”).      South Africa and developing      •   Getting “the basics right”
     ensuring intense domestic             better understanding of the       Early signals of increased        ambitious, but realistic             including policy and
     competition and creating              positive and negative impacts     polarisation, alienation and      responses to these proposals.        regulatory certainty; capable
     opportunities for Small and           of automation, to frame           digital anti-social behaviour                                          regulation; great macro-
     Medium Enterprises (SMEs),            relevant skills development and   can already be seen globally.     These include export growth          factors like savings rates and
     especially those from previously      migration strategies, a focus     Moral and political questions     opportunities; identifying and       inflation, policy execution
     excluded parts of our economy.        on job creating segments, and     relating to the emergence of      participating in emerging            effectiveness and delivery;
                                           inform mechanisms to mitigate     so-called social-scoring need     future global growth                 sector level (non-digital)
     Furthermore, evidence shows           job losses.                       to be explored. New frontiers     segments; developing                 productivity growth; sector
     that digitalisation is also                                             in ethics, legal frameworks       platforms to include SMEs            level competitive intensity;
     associated with increased                                               and regulation are already        in national and global               and SMB participation share,
     concentration, which                                                    being exposed. It is vital that   value chains; transforming       •   Critical infrastructure
     consequently threatens                                                  the South African response        healthcare; transforming             development including
     to increase inequality. The                                             acknowledges these shifts         education; and increasing            digital, financial, physical,     “THERE IS
     dialogue and our response,                                              and proactively positions the     domestic contribution to 4IR         innovation and knowledge
     therefore, needs to pursue                                              country “ahead of the game”,      markets and ecosystems,              infrastructures,                  STRONG
     simultaneous goals of                                                   rather than being reactive and    while reducing dependency        •   Skills and upskilling must
     enhancing South Africa’s                                                lethargic.                        on global digital-economy            be identified for the next        DIVERSITY
     national and industrial
     competitiveness, in a fair and
                                                                                                               participants.                        two decades, how they
                                                                                                                                                    should be taught, the role        AMONGST THE
     inclusive manner which will
     address the country’s extreme
                                                                                                                                                    of online education, how
                                                                                                                                                    do we deliver the correct
                                                                                                                                                                                      PARTICIPATING
     inequality levels. It is imperative
     that the opportunities inherent
                                                                                                                                                    primary, secondary and
                                                                                                                                                    tertiary education and skills
                                                                                                                                                                                      STAKEHOLDERS,
     in the 4IR are fully grasped                                                                                                                   development and outcomes,         BUT SHARED
     by government, industry, and                                                                                                                   and
     labour, But it also ultimately                                                                                                             •   Earning from other                COMMON
     must benefit broader society.                                                                                                                  emerging economies.
                                                                                                                                                                                      GOALS AND
                                                                                                                                                                                      OBJECTIVES.”

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4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
Our Roadmap
The Summits are the Milestones in the 4IRSA Journey

          Get Started                Broaden Participation          Digital Economy Summit               Elaboration             Summit of Declarations          Towards Execution

•    Form the partnership        •   Sector workshops:          •    Share sector workshop       •   Develop strategy and    •    Consolidate workstreams    •   Monitoring and
•    Establish the Secretariat       –– Government and               outputs                         policy responses             into a coherent national       evaluation
•    Formulate framework                 public research        •    Build alignment             •   Enhance research base        response                   •   Ongoing research
•    Start research agenda               bodies                 •    Elevate profile             •   Continue to broaden     •    Commit to declarations     •   Ongoing dialogue
•    Government involvement          –– ICT                     •    Agree on critical focus         inputs                  •    Agree on monitoring and
                                     –– Financial and                and further discussion      •   Start converging             evaluation mechanisms
                                         business services           areas                           positions               •    Agree on future
                                         ecosystem              •    Pledges to commit to        •   Formulate draft              pathways
                                     –– Commodities,                 further participation and       declarations
                                         manufacturing and           dialogue
                                         heavy infrastructure
                                         ecosystem
                                     –– Food, agriculture
                                         and retail related
                                         ecosystem
                                 •   Industry key players
                                     and associations,
                                     relevant government
                                     departments, labour,
                                     academia, civil society,
                                     global organisations
                                 •   Workshops and
                                     individual engagement
                                 •   Research and position
                                     papers
                                 •   Establish discussion
                                     platform

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4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
The workshop concluded with a willingness to       •   unions,
                                                                                                          share processes more widely and to seek better     •   water, and
                                                                                                          coherence between the various 4IR initiatives      •   wholesale and retail services.
                                                                                                          across the public sector.
                                                                                                                                                             Heavy Industry, Mining, Infrastructure
                                                                                                          ICT Sector                                         and Manufacturing

                                                                                                          An ICT sector workshop was held on 24 January      This workshop was held on 26 March 2019 and
                                                                                                          2019 and included key representatives from:        welcomed delegates from the following sectors:

                                                                                                          •   fixed and wireless telecommunications          •   mining, minerals beneficiation and
                                                                                                              companies;                                         processing,
                                                                                                          •   IT system integrators and service providers;   •   energy,
                                                                                                          •   industry associations;                         •   bulk transport,
                                                                                                          •   original equipment manufacturers;              •   manufacturing and distribution,
                                                                                                          •   global digital companies;                      •   wholesale and retail trade,
                                                                                                          •   Over-The-Top service providers;                •   research and development, and
                                                                                                          •   local entrepreneurs;                           •   engineering and technical activities.
                                                                                                          •   regulators and the
                                                                                                          •   Department of Communications,                  Financial and
                                                                                                              Telecommunications and Postal Services.        Business Services

Our Sector Workshops                                                                                      Agriculture, Foodstuffs and Related                The Financial and Business Services Workshop
                                                                                                          Retail Services                                    was held on 2 April 2019 and included
                                                                                                                                                             participants from the following sectors:
In the lead up to the Digital Economy Summit,       including education, healthcare, safety and
                                                                                                          An agriculture, foodstuffs and related retail
several sectoral workshops were held to:            security, and the media.
                                                                                                          services workshop was held on 19 March             •   banking,
                                                                                                          2019 and included leading public and private       •   insurance,
•    share the 4IRSA partnership framework,         Public Sector
                                                                                                          representatives from the following sectors:        •   real estate,
     process and aspirations,
                                                                                                                                                             •   legal,
•    explore sectoral disruption narratives to      A public sector workshop was held on 16
                                                                                                          •   agriculture,                                   •   accounting and professional services,
     develop shared insight into modes of           November 2018 to discuss different initiatives
                                                                                                          •   food and beverage,                             •   general business services, and
     disruption and possible industry impacts,      in various government departments and
                                                                                                          •   manufacturing and distribution,                •   wholesale and intermediation services.
•    initiate dialogue and obtain first level       state institutions, and to explore the feasibility,
     inputs across the five themes, with specific   desirability and mechanisms for aligning
     reference to sector-specific issues, and       these processes.
•    discuss follow-up strategies and the
     roadmap to the Digital Economy Summit.         Participants included senior representatives
                                                    from the:
Participation in these workshops included
leading establishments and experts from             •   Department of Telecommunications and
the public and private sectors, academia,               Postal Services,
researchers, labour and civil society. It           •   Department of Science and Technology,
also included promising newcomers and               •   Department of Trade and Industry,
disruptors, regulators, industry associations       •   Department of Public Service and
and 4IRSA representatives.                              Administration,
                                                    •   South African Reserve Bank,
The workshops covered sectors which                 •   Human Sciences Research Council,
collectively generate more than 70% of the          •   Council for Scientific and Industrial
total output of the South African economy,              Research,
96% of exports, and more than two-thirds            •   Innovation Hub,
of total employment. 4IRSA recognises that          •   World Economic Forum, and the 4IRSA
other critical sectors still need to be engaged,        Partnership.

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4IRSA IS A PLATFORM THAT CREATES SPACE FOR STIMULATING DIALOGUE, UNDERSTANDING AND ACTION TO SHAPE A COHERENT 4IR PLAN FOR SOUTH AFRICA.
FEEDBACK FROM DISCUSSIONS
                       BY THEMATIC AREA
                       •   Various government departments and
                           agencies were invited to provide an account
                           of their work relating to their readiness and
                           planning for 4IR.

                       •   Each government department has multiple
                           units and programmes that interface with
                           4IR, many of which are in the planning
                           stages.

                       •   Government departments have strong
                           collaborations with global partners on
                           4IR, such as the World Economic Forum,
                           the International Telecommunications
                           Union (ITU) and the International Labour
                           Organization.

                       •   There is a need for collaboration within
                           and across government departments, to
                           ensure lack of duplication of efforts, the
                           strengthening of local and international
                           partnerships and the development of a
                           central suite of policies that speaks to 4IR.

                       •   Many of the interactions duplicate efforts in
EACH GOVERNMENT            government. For example, the Department
                           of Trade and Industry is establishing a Centre
DEPARTMENT HAS             for the Fourth Industrial Revolution Network,
MULTIPLE UNITS AND         the Department of Telecommunications
                           and Postal Services is developing
PROGRAMMES THAT            partnerships with the ITU to institute South
INTERFACE WITH 4IR,        Africa’s Digital Transformation Centre whilst
                           the Department of Science and Technology
MANY OF WHICH ARE IN       has entrenched 4IR in the new draft white
THE PLANNING STAGES.       paper on science and technology.

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REDACTED FEEDBACK FROM DISCUSSIONS
BY THEMATIC AREA

Competitiveness, Concentration,                        Employment and the                              Society, State and Citizen
Fairness and Equality                                  Future of Work
                                                                                                       •   Government, industry and in particular
•    South Africa should develop policies              •   The ICT sector must be ready to
                                                                                                           the business and ICT sectors, including
     that incentivise organisations to explore             attract and embrace new talent and
                                                                                                           entrepreneurs must work collectively to
     emerging technologies and encourage                   ideas, expose communities to the
                                                                                                           harmonise various infrastructures. The state
     them to be localised. Our economy should              technology and the problems that
                                                                                                           should democratise services by building
     encourage the development of new                      they can solve with it, and also rethink
                                                                                                           a centralised, standardised platform of
     digitally enabled services, which should              how they recruit, retain and upskill
                                                                                                           services in various departments such as
     be recognised as new sub-sectors – for                talent.
                                                                                                           health, education and home affairs that are
     example, e-waste management, chatbots
                                                                                                           accessible by all citizens, in order to bridge
     and robotics.                                     •   Learning institutes must change their
                                                                                                           the gap of information poverty.
                                                           teaching methods by leveraging what
•    South Africa should encourage the                     is already in existence and gamify
                                                                                                       •   There is a need to improve policy-
     development of “superstar firms” to attract           teaching methods to align with the
                                                                                                           making procedures to speed up the
     new advanced digital talent from across               global 4IR.
                                                                                                           adoption of technology and to accelerate
     Africa and position the country as the
                                                                                                           standardisation and innovation, whilst
     African hub for digitally savvy ICT talent. The   •   Internships and scholarships should
                                                                                                           ensuring that these are accessible to all.
     existence of Amazon, IBM, Microsoft and               be reviewed through addressing the
     Google in the country is a good start.                employability problem, understanding
                                                                                                       •   All citizens must be empowered to embrace
                                                           the critical enablers in the workplace
                                                                                                           4IR and to reduce the burden on the state
•    The country is in need of clear and flexible,         and reviewing the next wave of skills
                                                                                                           to secure critical services.
     proactive policies that will accelerate the           required for 4IR.
     development of a conducive environment
     to enable South Africa to grow the skills         •   A change in the country’s policies is
     needed for 4IR in adequate measure.                   urgently needed, taking into account
                                                                                                           LEARNING INSTITUTES
                                                           that people can learn and work                  MUST CHANGE THEIR
•    Government should strive for adaptive                 virtually, in non-traditional workplaces.
     regulations that encourage investment in                                                              TEACHING METHODS
     progressive ICT infrastructure like 5G, IoT,      •   Organisations are implored to                   BY LEVERAGING
     fibre, data centres and data sciences.                empower employees with new,
                                                           relevant skills to address 4IR both in          WHAT IS ALREADY
•    Industry should look at diversifying markets
     in the face of competition, by building
                                                           South Africa and beyond.
                                                                                                           IN EXISTENCE AND
     “superstar firms”, embracing disruptive           •   Education systems must introduce                GAMIFY TEACHING
     technology to tackle competition, and to              new digital learning elements in
     position South Africa as the silicon valley of        schools and universities to support the
                                                                                                           METHODS TO ALIGN
     the continent and a global 4IR player.                digital transition into the workplace.          WITH THE GLOBAL 4IR.

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Report: Agriculture, Foodstuffs and
     Related Retail Services Workshop
REDACTED FEEDBACK FROM DISCUSSIONS
BY THEMATIC AREA

Competitiveness, Concentration,                         agriculture and related sectors. For          •   There needs to be a shift in the relationship      •   Businesses should work for people through
Fairness and Equality                                   example, artificial intelligence can              between workers, workers’ unions, and                  developing e-portals that generate
                                                        been used to improve the predictability           executive management in companies and                  transparency in the value chain, whilst
•    South Africa’s quality of food is globally         of decisions; machine learning and                organisations, and better collaboration                ensuring data privacy laws.
     competitive as the country has the right           augmented reality can be used to                  between these social actors in order to work
     climate, arable soil and natural conditions        improve the training of farmers and               towards a shared set of values and common          •   There is a need to use reliable data to
     for growth. For example, South Africa is one       workers; Blockchain technology can be             goals pertaining to 4IR.                               inform food regulatory policies and
     of three countries that are black-spot free.       used to improve traceability and trust                                                                   standards in order to ensure that regulation
     South Africa’s standards bodies are mature         in South African food; and drone and          •   Adequate and meaningful collaboration                  stays apace with advancements in food and
     and help the country maintain a high               satellite technologies, coupled with the          between large industry players and smaller             agriculture technology.
     quality of produce.                                Internet of Things can be used to enhance         entrepreneurs is essential to build an
                                                        environmental sustainability.                     inclusive community.
•    The country’s positioning gives us better                                                                                                                   OPPORTUNITIES LIE IN
     access to global markets than other
     African countries.
                                                    Employment and the Future of Work                 Society, State and Citizen
                                                                                                                                                                 “FARMING 365” WHEREBY
                                                    •   A shift in the education and continuous       •   Initiatives that ensure that no one is left            4IR CAN HELP FARMERS
•    Opportunities lie in “farming 365” whereby
     4IR can help farmers to operate farms
                                                        upskilling of workers in this industry will       behind should be developed, which include              TO OPERATE FARMS
                                                        result in more independent workers who            empowering agricultural communities with
     around the world from within our borders           are better equipped at performing their           digital literacy skills.                               AROUND THE WORLD
     and vice-versa.                                    roles. This could also result in workers                                                                 FROM WITHIN OUR
                                                        specialising in certain areas and being       •   The empowerment of citizens through secure,
•    It must be recognised that 4IR has helped          able to work on multiple farms where this         reliable and interoperable digital identities is
                                                                                                                                                                 BORDERS AND
     South Africa to amplify its strengths in           specialty skill is needed.                        essential as well as lowering the cost of data.        VICE-VERSA.

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jobs that no longer exist. The transition of
REDACTED FEEDBACK FROM DISCUSSIONS                          people from the jobs of today to the jobs
BY THEMATIC AREA                                            of tomorrow must be deliberately enabled
                                                            by targeted skills development, with
                                                            appropriate safety nets for those who cannot
Competitiveness, Concentration,                             be transitioned to new roles.
Fairness and Equality
                                                        Society, State and Citizen
•    South Africa’s 4IR levers for competitiveness
     include increasing utilisation of the Internet     •   These sectors seek to embrace the shared
     of Things, machine learning, automation,               goal for developing a sustainable and
     and digital trade to drive productivity,               trusting society that leaves no person
     improve strategic decision-making and                  behind. There is a need to enhance
     build industries that support product and              community exposure to 4IR, to provide
     service provision of these key technologies            access to opportunities, and to work
     to the mining and manufacturing sectors.               towards developing technologies that
                                                            enhance socio-economic development.
•    This requires a conscious effort
     towards developing an innovative and               •   Whilst the role of higher education is
     entrepreneurial approach, technical and ICT            essential in moving South Africa forward
     skills, as well secure, safe, affordable energy.       in terms of 4IR, there is a need to develop
     This is ultimately underpinned by the will             technology-based skills development
     of political leaders to drive 4IR through              across the education spectrum. The use of
     collaboration and a coherent supportive                technology should fast track connecting
     policy framework.                                      people who want work, with opportunities
                                                            that exist, and not to limit these opportunities
Employment and the Future of Work                           to the formal construct of full-time jobs.

•    Some of the expected labour shifts include
     the increased requirements for artisanal
                                                        SOME OF THE EXPECTED
     and technically abled people, as well              LABOUR SHIFTS INCLUDE
     as specialist capabilities, both linked to         THE INCREASED
     increased production and the utilisation
•    of new technologies.                               REQUIREMENTS
                                                        FOR ARTISANAL AND
•    ICT skills development should be more
     broad-based and inclusive, requiring
                                                        TECHNICALLY ABLED
     workforce ecosystem structures to move             PEOPLE, AS WELL AS
     quickly, so that no person is left behind.
                                                        SPECIALIST CAPABILITIES,
•    The automation of manual work is expected          BOTH LINKED TO
     to result in a potential reduction in repetitive   INCREASED PRODUCTION
     and heavily manual tasks. A focus is required
     on supplementary job creation in other parts       AND THE UTILISATION OF
     of the value chain to redirect and absorb          NEW TECHNOLOGIES.

22                                                                                                       23
SOUTH AFRICAN FINANCIAL INSTITUTIONS ARE EARLY
                                                       ADOPTERS OF DIGITAL TECHNOLOGY AND REGULATORS
                                                       IN THE COUNTRY ARE OPEN TO 4IR INITIATIVES.

REDACTED FEEDBACK FROM                                                        •   There is also a need to develop skills and to
                                                                                  retrain affected workers. At the same time,
DISCUSSIONS BY THEMATIC AREA
                                                                                  this presents an opportunity to rethink how
Competitiveness, Concentration,                                                   financial services are offered in the country
Fairness and Inequality                                                           by tapping into new models for financial
                                                                                  advisory services.
•    South African financial institutions are
     early adopters of digital technology and                                 State, Society and Citizen
     regulators in the country are open to
     4IR initiatives.                                                         •   There are three main principles that should
                                                                                  be adopted: “Leave no person behind”,
•    The current oligopoly of banks can be                                        “Make business work for people” and “Build
     displaced with smaller fintech players.                                      new rules for a new game”.
     Digital services are helping to simplify the
     “Know Your Customer” process and are                                     •   One of the most prevalent reasons for people
     defining new payment trails. They are also                                   being excluded from financial systems is
     helping to improve the benefits of peer-to-                                  the stringency of FICA requirements and in
     peer lending.                                                                particular the need for proof of a physical
                                                                                  address. 4IR provides opportunities to
•    There is an opportunity for South Africa                                     leverage available technology like Blockchain
     to differentiate its financial offering using                                or geotagging to resolve this problem.
     digital services. It can appeal to different
     market segments with African-specific                                    •   The current financial system needs to
     constraints like the need for access to credit.                              embrace the principle of “Segment of 1”,
     This could serve as a competitive advantage                                  providing mass customisation to better
     that would establish South Africa as an                                      meet the needs of customers, tailored to
     African hub for digital financial services.                                  their individuals needs and preferences,
                                                                                  using a rule-based system to help customers
Future of Work and Employment                                                     make informed choices.

•    The roles of many people in financial                                    •   South Africa is fertile ground for innovative
     services roles are in decline like back                                      solutions in the sector. However, there
     office roles, first line credit managers                                     is a need to adapt and to help scale and
     and knowledge workers and there is a                                         commercialise these opportunities in order
     need to change employee and employer                                         to ensure that business and service practices
     approaches to better understand the                                          talk to the unique South African cultural
     implications of 4IR.                                                         norms like Ubuntu.

24                                                                                                                           25
Emerging Questions in the Lead Up
to the Digital Economy Summit

Overarching Questions

•    What can South Africa learn from the           •   Which services create the greatest tension
     superstar firms built to date? How can the         for citizens? How can 4IR change the way in
     country enable pockets of excellence to            which they are delivered?
     thrive and leverage 4IR? How can South
     Africa connect into value chains and           •   Which are the critical areas of infrastructure
     evolving ecosystems?                               to standardise? Where is there a need to
                                                        build bridges and to connect citizens to the
•    What special incentives and structures can         state and society through 4IR?                   Agriculture, Foodstuffs and Related               •   How does South Af rica ensure growth of
     South Africa create to drive the adoption                                                           Retail Services                                       the automotive sector and build smart
     of 4IR and new technologies? How will                                                                                                                     cities amidst a potential, disruptive
     suitable zones be selected?                                                                         •   How does South Africa build knowledge             change towards electric and autonomous
                                                                                                             systems to leverage the institutional             vehicles?
•    How can South Africa leverage on the work                                                               knowledge, for example, for climate change
     by other research entities like the Human                                                               and its impact on farming and distribution,   •   How is South Africa able to attract
     Sciences Research Council’s “Skills Plan”                                                               to respond better to changes?                     investment in new manufacturing facilities
     or the CSIR’s “Future of Work” reports in                                                                                                                 and digital trade platforms that embrace
     concert with industry-specific demands to                                                           •   What are the local consumption behaviour          more connected interaction models
     transition workforces for 4IR?                                                                          trends for the future, which will better          between consumers and manufacturers?
                                                                                                             inform production strategies that can be
•    How can legislation reform be driven to                                                                 supported locally in a sustainable manner?    Finance and Business
     respond to the future of work, with the
     changing nature of workplaces, contracting                                                          •   What are some of the strategies or enablers   •   What are some of the important
     and work?                                                                                               to identify opportunities to improve food         characteristics of the Fintech sandbox
                                                                                                             retail supply chains to reduce the cost of        we would like to create to help grow new
ICT                                                                                                          logistics and wastage?                            businesses?

•    How is South Africa positioned to compete                                                           Heavy Materials, Mining, Infrastructure           •   What data exists to support better use of
     against global counterparts in the gig                                                              and Manufacturing                                     AI in the sector and how should they be
     economy? How far should the country go to                                                                                                                 governed?
     protect and/or cultivate the gig economy?                                                           •   What are the opportunities to promote
     How can South Africa position its successes                                                             plant modernisation and exploration in        •   How do we gain a deeper understanding of
     regionally and globally?                                                                                manufacturing and mining respectively?            the trust people place in financial products/
                                                                                                                                                               solutions and how can this be fostered
•    How can 4IR technologies help to                                                                    •   How does South Africa ensure a sustainable        to encourage more responsible financial
     accelerate public consultation processes                                                                demand for one of its key resources like          behaviour to be supported by alternative
     and improve the adoption of 4IR initiatives?                                                            pure gold mining?                                 solutions?

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“SOUTH AFRICA HAS
                                                                                                         CHOSEN TO BE A COUNTRY
                                                                                                             OF THE FUTURE AT A
                                                                                                          TIME WHEN THE WORLD
                                                                                                           IS CHANGING AT A PACE
                                                                                                         AND IN A MANNER THAT IS
Towards the Digital Economy Summit                                                                      UNPRECEDENTED IN HUMAN
and the Summit of Declarations                                                                           HISTORY. REVOLUTIONARY
                                                                                                        ADVANCES IN TECHNOLOGY
                                                     The objectives of the Summit are to:
                                                                                                         ARE RESHAPING THE WAY
                                                     •   build alignment, participation and               PEOPLE WORK AND LIVE.
                                                         momentum for the 4IRSA process,
                                                     •   share sector workshop outputs,
                                                     •   agree on areas that require further research
                                                         and deliberation, and
                                                     •   enable delegates to pledge further
                                                         participation and dialogue.

                                                     Summit of Declarations

                                                     A second summit, currently termed the
                                                     Summit of Declarations, will be held a year
The Digital Economy Summit is a platform             after the Digital Economy Summit.
that seeks to accelerate the development of
an inclusive, coherent, national response to         The objectives of the Summit of Declarations
the Fourth Industrial Revolution for South           are to:
Africa, based on research. This Summit will
bring together key constituencies from the           •   consolidate all work stream reports into a
public and private sectors, academia and                 comprehensive national response to 4IR,
civil society to develop a unique blueprint for      •   ensure that all relevant stakeholders and
the local South African context taking into              social actors are represented and that they        UNLESS WE ADAPT,
consideration the role of state, citizen and             commit to a short-, medium-, and long-
society; the future economy; the challenges              term responses to 4IR in the form of a
                                                                                                        UNLESS WE UNDERSTAND
related to poverty, unemployment and                     declaration for their respective sectors,         THE NATURE OF THE
                                                     •   agree on monitoring and evaluation
inequality; considerations on how to bridge
                                                         mechanisms for the 4IR process, and
                                                                                                           PROFOUND CHANGE
the digital divide and how to make choices
that will benefit all. As President Cyril            •   pursue further areas of dialogue and            THAT IS RESHAPING OUR
Ramaphosa emphasised in his State of the                 research.                                         WORLD, AND UNLESS
Nation Address, for South Africa to make
its Vision 2030 – which includes eliminating         It is anticipated that the 4IRSA process will        WE READILY EMBRACE
poverty and creating millions of jobs – a reality,   extend beyond the Summit of Declarations but         THE OPPORTUNITIES IT
the time is now and 4IR will serve as a key          the nature of the ongoing work will need to be
catalyst to transform the country.                   shaped by the process up to that point.
                                                                                                        PRESENTS, THE PROMISE
                                                                                                         OF OUR NATION’S BIRTH
                                                                                                          WILL FOREVER REMAIN
                                                                                                             UNFULFILLED.”
                                                                                                        President of the Republic of South Africa
                                                                                                           The Honourable Cyril Ramaphosa

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