The shadow of Elon Musk looms large over the advancements South Africa has strived to make in the era of the Fourth Industrial Revolution. Despite his deep entrenchment in United States politics under US President Donald Trump concerning his leadership of the Department of Government Efficiency (DOGE), Musk’s South African heritage has come under the microscope. It could lead to a negative impact on other Tech entrepreneurs who reside in South Africa. The good news for these tech founders, innovators and entrepreneurs is that they stand out in their own right. A closer look at these local made tech entrepreneurs is that they are addressing complex challenges and technology solutions. About the same time their positive impact on South African society goes beyond the call of duty.
Another South African technology entrepreneur who is breaking new ground is Pieter de Villiers. His company, Clickatell, has been at the forefront of the chat economy. If you are using WhatsApp to interact with your bank or airline, you are probably using a technology service that is enabled by a company led by De Villiers. This is not only in South Africa, but across the world. He has worked hard to ensure that there’s a sufficient quality talent pool in South Africa. These entrepreneurs are great examples of business leaders that are emerging from South Africa. More of them should be known, not only in South Africa but globally. They are different from the ones that have captured the spotlight. They are tech startup founders with impact, yet responsible.
Tech startup founders have been a positive force in society; however, the Musk cloud threatens to tarnish their image. It’s about time that South African tech startup founders stand up and be counted.
Despite the shadow of Musk hanging over South Africa’s homegrown class of tech entrepreneurs, they are succeeding in making their own. The government and President Cyril Ramaphosa need to enable entrepreneurs like De Villiers through economic opportunities such as the Africa Continental Free Trade Agreement (AfCFTA) and the Southern African Development Community (SADC) to expand their reach. South Africa could become a hub of technology and business for the rest of the southern African region. Tech entrepreneurs in the private sector have helped to foster the rise of new tech innovators. The role of Pretoria, provincial and municipal administrations is to enable the increase in such tech providers. This is done by supplying them with the services and environment they need to work. An end to bureaucracy and red tape.
President Cyril Ramaphosa has already created the Innovation Fund for the country. This was in response to the country’s urgent need for inclusive and sustainable economic growth.
Evidence from South Africa shows that public financial support for innovation influences the investment that businesses make in innovation. Analysis of data from 2019-2021 provides important evidence for designing effective innovation policy support. A key finding of the survey was that 62% of South African businesses carried out innovation activities between 2019 and 2021. This was noticeably lower than in the previous (2014-2016) survey round, when the rate was 70%. The reason might be the impact of the COVID-19 pandemic. Many businesses said that they had to make changes to their existing innovation activities between 2019 and 2021. It is expected that the innovation-active rate may rise again in the next round. (Data for the 2022-2024 reference period will be collected in 2025.)
Tech innovation can progress and flourish once the state through all three levels of government support businesses to embrace such innovation. South Africa could be a pioneer in Africa in tech innovation through this Innovation Fund. This Innovation Start up Fund is the key to attract private investors to place their investments in South African Tech businesses and those businesses that use such tech. South African tourism for example can benefit immensely from introducing tech innovations. This will be particularly true of social media. None the less consumers will feel the need to invest less in tech innovation when they are less incentives to do so e.g., work from home because of a Pandemic like Covid 19. The use of automatons in factor will also play a significant role in the industrial sector. Only time will tell how these innovations manifest themselves.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
