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
      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      30 January 2026
      SABC Plus to flight Microsoft AI training videos

      SABC Plus to flight Microsoft AI training videos

      30 January 2026
      Fibre ducts

      Fibre industry consolidation in KZN

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      What ordinary South Africans really think of AI

      What ordinary South Africans really think of AI

      30 January 2026
    • World
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 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
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 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
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    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

    BMW South Africa warns EV policy paralysis is stalling investment - Peter van Binsbergen

    BMW South Africa warns EV policy paralysis is stalling investment

    29 January 2026
    Chinese car makers flood South Africa while factories lag - Mikel Mabasa

    Chinese car makers flood South Africa while factories lag

    28 January 2026
    Digital IDs will launch before year-end, government says - Maropene Ramokgopa

    Digital IDs will launch before year-end, government says

    23 January 2026
    Company News
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    Phishing has not disappeared, but it has grown up - KnowBe4

    Phishing has not disappeared, but it has grown up

    30 January 2026
    Smartphone affordability: South Africa's new economic divide - PayJoy

    Smartphone affordability: South Africa’s new economic divide

    29 January 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

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

    Latest Posts
    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    30 January 2026
    TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

    TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

    30 January 2026
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    SABC Plus to flight Microsoft AI training videos

    SABC Plus to flight Microsoft AI training videos

    30 January 2026
    © 2009 - 2026 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}