SA’s much-touted plan to embrace the Fourth Industrial Revolution (4IR) is coming under intense criticism for being too ambitious, especially for a government that is stuck with old ways of governing the country and managing the economy.

Mteto Nyati, the CEO of information and communications technology company Altron, has joined the chorus of people who have questioned SA’s ability to embrace the revolution, saying a significant number of government leaders and policymakers “cannot connect at all with technology” or use it optimally.

“They use technology, but they don’t see it as an enabling tool to drive the country to economic growth and development.

“It would have been nice for ministers to take the time to truly understand what they are talking about. Their understanding of the Fourth Industrial Revolution is still superficial. It’s important to have a 4IR vision, but we need to be brutally honest about where the country is at this moment in time,” Nyati told Business Maverick.

Nyati, a former executive at Microsoft, IBM and CEO of MTN SA, is also the board chair of South Africa in the Digital Age (Sada), a public-private sector initiative that aims to influence policy on how the country can grow the economy in an inclusive manner through digital technology. 

Political waffle

Underscoring his views about government leaders and policymakers is that deputy president David Mabuza caused a stir when he appeared in Parliament on 22 October 2019 during a question-and-answer session.  When asked by EFF MP Mbuyiseni Ndlozi to define 4IR, he struggled, saying: 

“Well, in terms of the First, the Second and the Third industrial revolution, probably that is a new question because (your) question is looking at the Fourth Industrial Revolution. Now you are taking me back to the feudal way of doing things; I must start from the First Industrial Revolution to the Third Industrial Revolution… that will take a lot of time. But I am not very sure as a country whether we are in the Third Industrial Revolution or Second Industrial Revolution.”

He continued, saying that 4IR is “in the main is characterised by the introduction of information technology, easier way of doing business, the introduction of robotics in our industrialisation process to enhance our competitiveness”.

Underpinning 4IR is smart technology such as artificial intelligence (AI) and automated machines — and how it changes the way humans work, live and interact with the world. This revolution, which is somewhat related to the Third Industrial Revolution of computerisation (emergence of electronics, telecommunications and computers), is impacting on all disciplines, industries and economies. Technology experts say South Africa is not prepared for 4IR because it has missed the two preceding revolutions of electricity generation and manufacturing assembly lines, and computerisation. After all, SA cannot be ready for 4IR when Eskom, the struggling power utility that supplies more than 90% of the country’s electricity, cannot keep the lights on and hobbles any prospect for economic growth.

Potential jobs

Arguably, Nyati’s views are a stark reminder that the government is caught up in the global hype of the revolution — without understanding it — and any of its plans to revive SA’s struggling economy and create jobs through policy underpinned by 4IR might be stillborn.

“Our leaders are not coming from an ideology of creating free markets, which is required for the Fourth Industrial Revolution. But they are still stuck on communism and socialism. This creates a problem,” he says.

That President Cyril Ramaphosa appointed members of a presidential commission on 4IR in early 2019 to recommend policies, strategies and plans to position SA as a competitive player in the digital space is a good thing. Although the commission’s work is still ongoing, Nyati said it’s a good initiative by Ramaphosa. 

“It is good now that we are seeing that our president is leading with 4IR. It’s like a breath of fresh air to hear the leader saying all of these things.”

Nyati says 4IR’s potential for job creation in SA, at a time when the country faces a jobless rate of 29% or more than 35% when factoring discouraged job seekers, is big. 

Sada recently released a report indicating that SA can create 500,000 new jobs over the next 10 years if the country embraces digital technologies and taps into the global demand for ICT and digital services.

It found that digital technology and platforms that match demand and supply for low-skilled labour — such as food delivery apps that require low-skilled drivers of motorcycles — will create work for low-skilled South Africans. The report also found that using AI and robotics can result in new digital business models being created — further strengthening the case for job creation. BM