South Africa is on a journey that could lead it to pioneer the next wave of inclusive economic growth. This will depend on the path it will take as a country. When the discussion of growth-enabling infrastructure is brought up, the focus is on what steel and concrete will be used in construction of said infrastructure. However not enough focus is given to the invisible frameworks – the digital and financial systems that connect markets and people – are the actual determinatives of advancing technological progress. Upgrading old processes will not suffice; the innovation of technology infrastructure demands a foundational redesign of the nation’s core banking practices and day-to-day online actions. The very circulatory system of South Africa’s economy needs to be radically catalysed for the future.
This approach unlocks, for example, the potential for municipalities and public utilities to streamline revenue collection with greater transparency, or for educational institutions to digitise fee payments seamlessly. When Emirates NBD implemented our Virtual Account Management (VAM) platform across 13 countries, it significantly optimised operational costs while managing $80m in monthly transaction volume. We foresee similar opportunities for South African organisations to enhance efficiency and improve service delivery for all citizens. Furthermore, by supporting a wide range of collection and payment channels, we can help bridge the gap between the cash-based and emerging digital economy in SA. It provides frictionless and dignified ways for citizens to engage with public services, fostering greater financial inclusion and accountability.
This is another example of how financial transactions and payments ate innovating at a press of a button. The new advancements in account management have shifted into the virtual realm with VAM. The transaction, acquirement, collection as well as the distribution of revenue can be done through monitoring the above movements of such money through the use of static and mobile devices. South Africa stands at the cusp of moving towards the use of a digital currency. There are a lot of questions surrounding the use of such currency for good or evil in the world of the Fourth Industrial Revolution. Digital currency and transactions are not solid. The digitalization of currency and finance depend on having the value of an individual’s work, investments and all forms of prices accessed by Artificial Intelligence (AI).
Another issue that is linked to technology innovation in terms of industrial progress is renewable and environmentally friendly energy. Deputy Minister of electricity and energy Samantha Graham Maré had spoken at the G20 Summit in Pretoria.
Africa’s renewable energy potential stands as a defining opportunity to reshape the continent’s economic and industrial landscape. Speaking at a side event of the G20 4th Energy Transitions Working Group (ETWG) meetings, Deputy Minister of Electricity and Energy Samantha Graham-Maré emphasised that the continent’s vast solar, wind, and mineral wealth, combined with its dynamic youth, positions Africa at the forefront of a sustainable industrial revolution. “For Africa, this is the defining challenge and the defining opportunity of our century,” she declared. “Our continent holds 60% of the world’s best solar resources, immense wind potential, and many of the critical minerals that underpin the global clean energy economy. But our greatest asset is our people—young, innovative, and ready to build.”
This intersection of abundant natural wealth and human capital, she said, gives Africa a unique chance to leapfrog into a new era of re-industrialisation, where renewable energy powers the creation of green industries and value chains.
South Africa may be leading at the forefront of the Fourth Industrial Revolution (4IR) if it has the right political leadership at the helm. It will largely depend on what policies President Cyril Ramaphosa implements as regards this transition to renewable energy and industrialization under the direction of AI and digital analytics as well as coding. Africa due to its large land mass and abundant resources in terms of minerals, energy sources and peoples is strategically placed to play a role in the Fourth Industrial Revolution. However, this is only possible if South Africa one of the continent’s main economic centres harnesses and guides that potential. South Africa as the Gate way to the continent needs to become a centre of innovation and connectivity.
Ramaphosa must harness the potential of developing South Africa’s tech industries to progress to expand job creation. Improving education and the tertiary training should also be a priority. South Africa must improvise in its approach as regards to science, energy and tech to lead ahead. Digital finance and currency needs, to be limited where necessary.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
