Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Big Microsoft 365 price increases coming next year

      Big Microsoft price increases coming next year

      5 December 2025
      Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

      Vodacom to take control of Safaricom in R36-billion deal

      4 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      BYD takes direct aim at Toyota with launch of sub-R500 000 Sealion 5 PHEV

      4 December 2025
      'Get it now': Takealot in new instant deliveries pilot

      ‘Get it now’: Takealot in new instant deliveries pilot

      4 December 2025
    • World
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
      Bezos unveils monster rocket: New Glenn 9x4 set to dwarf Saturn V

      Bezos unveils monster rocket: New Glenn 9×4 set to dwarf Saturn V

      21 November 2025
      Tech shares turbocharged by Nvidia's stellar earnings

      Tech shares turbocharged by stellar Nvidia earnings

      20 November 2025
      Config file blamed for Cloudflare meltdown that disrupted the web

      Config file blamed for Cloudflare meltdown that disrupted the web

      19 November 2025
    • In-depth
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
      Why smart glasses keep failing - no, it's not the tech - Mark Zuckerberg

      Why smart glasses keep failing – it’s not the tech

      19 October 2025
      BYD to blanket South Africa with megawatt-scale EV charging network - Stella Li

      BYD to blanket South Africa with megawatt-scale EV charging network

      16 October 2025
    • TCS
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
      TCS | Why Altron is building an AI factory - Bongani Andy Mabaso

      TCS | Why Altron is building an AI factory in Johannesburg

      28 October 2025
    • Opinion
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
      How South Africa's broken Rica system fuels murder and mayhem - Farhad Khan

      How South Africa’s broken Rica system fuels murder and mayhem

      10 November 2025
      South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

      South Africa’s AI data centre boom risks overloading a fragile grid

      30 October 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Alison Gillwald » SA caught up in 4IR hype – let’s get the basics right first

    SA caught up in 4IR hype – let’s get the basics right first

    By Alison Gillwald23 August 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    South Africa is caught up in the global hype of the so-called fourth Industrial Revolution (4IR). This is distracting it from the unfinished business of redressing inequality and creating the preconditions for an inclusive digital economy and society.

    Reinvented by Klaus Schwab of the World Economic Forum (WEF), 4IR technologies are presented as having the potential to propel digitally ready countries into a new age of unprecedented economic prosperity.

    The forum’s appropriation of the concept has arguably been one the most successful lobbying and policy influence instruments of our time. Mobilising around the elite annual gathering in Davos, the WEF policy blueprints on the 4IR fill a vacuum for many countries that haven’t publicly invested in what they want their own futures to look like. South Africa is one of them.

    The WEF’s appropriation of the concept has arguably been one the most successful lobbying and policy influence instruments of our time

    With visions of global prosperity, packaged with futurist conviction and fantastical economic forecasts of exponential growth and job creation, they appear to provide a ready road map in an uncertain future.

    But caution is required. Even a cursory glance at earlier industrial revolutions will show that they have not been associated with the interests of the working or underclasses. This is despite the broader benefits to society from the introduction of steam, electricity and digitisation. Rather, they are associated with the advancement of capitalism, through the “big” tech of the day.

    The so-called fourth Industrial Revolution is no different.

    Reductionist conception

    There is little to link the WEF’s reductionist conception of industrial development with the rich school of thought that has examined complex and revolutionary change over time. The intellectual origins of the subject lie with Nikolai Dmitriyevich Kondratiev. In 1926, he identified waves and shifts in capitalism as it matured over time. This became known as the Kondratiev Wave. It was popularised intellectually by the Austrian political economist Joseph Schumpeter’s notion of “creative destruction”.

    That concept now underpins much of the contemporary theory on innovation. It also informs thinking about disruption as a potentially positive economic and social force. So far, six Kondratiev waves are identified in the literature. Information and communication technologies is the fifth. Renewable energy is proposed as the sixth.

    Yet this intellectual tradition has been ignored by the WEF. In addition, a range of institutions have responded to its clarion call. These include Ivy League universities, international industry conferences, multilateral agencies, development banks and regional economic commissions.

    The author, Alison Gillwald, argues that layering advanced technologies over the existing structural inequality in South Africa will exacerbate existing social, economic and political inequalities

    At the same time, international donor agencies and governments are diverting public funding from pro-poor policy research agendas on digital inclusion to artificial intelligence as well as robotics, machine learning, drones and blockchain. This, on a continent where Internet penetration in many countries is below the critical mass 20% believed to be necessary to enjoy the network effects associated with broadband adoption and economic growth.

    In South Africa, the 4IR has become the mantra of every new policy initiative and official event. President Cyril Ramaphosa has thrown his weight behind it as the route out of the economic crisis. His proposed vehicle for pursuing it is a new presidential commission.

    The notion of a 4IR might be a convenient way of packaging history and of mobilising people. But there is nothing inherent in so-called 4IR technologies that will necessarily result in economic growth, job creation or empowerment of the marginalised.

    Layering these advanced technologies over the existing structural inequality in South Africa will exacerbate existing social, economic and political inequalities

    Evidence from the so-called third IR tells us we should not take for granted that technology will translate into wage or productivity growth. Nor will it necessarily generate “decent work”. Countries must first develop a good set of complementary policies, both as business and government, to reap the benefits of these increasingly pervasive advanced technologies.

    The conflation of broad digital policy required to support social and economic transformation with this narrower aspect of the deployment and governance of the data associated with “4IR” technologies is problematic. In fact, layering these advanced technologies over the existing structural inequality in South Africa will exacerbate existing social, economic and political inequalities.

    It is not that advanced technologies cannot be mobilised for developmental purposes. But technology, in and of itself, cannot change or disrupt existing modes of production. It also cannot determine positive or negative outcomes. The interests that mobilise behind or drive certain innovations, and the uses to which the resulting technologies are put determine their social, economic and political outcomes.

    Perpetuating myths

    Several South African government departments have developed WEF-inspired 4IR strategies. The most recent example is the 4IR framing report released by the recently re-merged department of communications.

    Accenture, the international consultancy that partners with the WEF globally on the 4IR, has prepared a framework for the department. This, it says, will enable South Africa to become 4IR-ready.

    Perhaps unsurprisingly, the report perpetuates some of the myths of the 4IR. It claims that 4IR technologies across industries in South Africa can, over the next decade, contribute R5-trillion worth of social and economic value. It also claims that they will create four million jobs.

    The report says these are based on the methodology developed by the WEF in collaboration with Accenture. But there is no explanation of the methodology; no basic workings on how these figures were derived.

    South Africa has about 700 000 new young people entering the job market every year. The Centre for Economic Development and Transformation estimates that a growth rate of around 10% will be required to absorb these new entrants into the economy. But the current growth is only expected to reach 1.5% in 2019. It is then expected to rise to 2.1% by 2021.

    With the Accenture copyright emblazoned on the report, it has now been released as a government document. With a nod to digital inclusion, the report does observe that to make this miracle happen, South Africa will need to meet several conditions. These include improved connectivity, effective regulation and functioning markets.

    Optimised consumer welfare, redressing poor education outcomes and developing an appropriate digital skills base for the new economy will all be crucial, too. All undoubtedly correct, but this is no revelation. These are all objectives of current policy that South Africa has failed to achieve to different degrees over the past 25 years.

    With the Accenture copyright emblazoned on the report, it has now been released as a government document

    The report makes no effort to explain why the outcome of two decades of policy reform and sector regulation has failed to maximise consumer welfare — its primary objective. Instead the sector is characterised by rent extraction. This has been by both the private sector (high prices) and the state (licence fees and secondary sectoral taxes that contribute to the high prices).

    Like other reports from slick international consultants over the years, they fail to engage with a host of critical inhibitors of digital inclusion and diffusion of advanced technologies beyond an elite. It does not ask why previous rounds of market reform weren’t successfully implemented. There is no reference to the absence of institutional endowments necessary to implement so-called international “best practice” in most African countries.

    Addressing the reasons for policy and institutional failures and proposing how these might be overcome would have gone some way to laying the ground for South Africa to more equitably embrace the impending “fourth Industrial Revolution”.The Conversation

    • Written by Alison Gillwald, adjunct professor, Nelson Mandela School of Public Governance, University of Cape Town
    • This article is republished from The Conversation under a Creative Commons licence


    Accenture Alison Gillwald Cyril Ramaphosa Klaus Schwab top WEF World Economic Forum
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVox introduces hardware-as-a-service offering in boost to SA business
    Next Article Kwese parent Econet Media put up for sale

    Related Posts

    WEF warns of bubbles in global economy

    WEF warns of bubbles in global economy

    5 November 2025
    South Africa readies new one-stop portal for government services - Cyril Ramaphosa

    South Africa readies new one-stop portal for government services

    3 November 2025
    South Africa's electric vehicle policy still stuck in neutral

    South Africa’s EV policy still stuck in neutral

    10 October 2025
    Company News
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Telcos are sitting on a data gold mine - but few know what do with it - Phillip du Plessis

    Telcos are sitting on a data gold mine – but few know what do with it

    4 December 2025
    Unlock smarter computing with your surface Copilot+ PC

    Unlock smarter computing with your Surface Copilot+ PC

    4 December 2025
    Opinion
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025
    Zero Carbon Charge founder Joubert Roux

    The energy revolution South Africa can’t afford to miss

    20 November 2025
    It's time for a new approach to government IT spend in South Africa - Richard Firth

    It’s time for a new approach to government IT spend in South Africa

    19 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Big Microsoft 365 price increases coming next year

    Big Microsoft price increases coming next year

    5 December 2025
    AI is not a technology problem - iqbusiness

    AI is not a technology problem – iqbusiness

    5 December 2025
    Vodacom to take control of Safaricom in R36-billion deal - Shameel Joosub

    Vodacom to take control of Safaricom in R36-billion deal

    4 December 2025
    Black Friday goes digital in South Africa as online spending surges to record high

    Black Friday goes digital in South Africa as online spending surges to record high

    4 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}