By THANDISIZWE MGUDLWA
Small businesses will be critical for South Africa’s advancement in the 4th industrial revolution, while access to information will revolutionize education.
This was the view that emerged at an insightful panel discussion in Midrand, Guateng province recently.
The topic debated looked at the question, “Is South Africa Ready for the 4th Industrial Revolution?” Panel speakers included Siemens Southern and Eastern Africa CEO Sabine Dall’Omo, CSIR Research and Development Strategy Manager Dr Daniel Visser, and SAA CEO Vuyani Jarana.
This discussion, hosted collaboratively by Siemens and CNBC Africa, explored effects industry 4.0 would have on the country.
Delegates from business and government heard that shying away from connectivity and artificial intelligence was not the answer. ‘Yes, the robots are rising but they will never replace humans, is the overall view.
Industry 4.0 is drastically changing the work landscape, how we live and how we do things but with the involvement of academic institutions, government, private institutions and the South African society, we can ensure that this digital revolution will only impact the country positively, organisers further noted.
“There is no place to hide from connectivity. South Africa cannot step aside and not participate. We need to actively participate and shape South African industries to be more competitive in the global market,” said Dall’Omo.
“This revolution is not only for big fishes. We want to help smaller companies get involved and apply technologies in their businesses. This will contribute to a stronger GDP.”
Delegates heard that this revolution was not triggered by profitability, with popular analysis confirming that, it is not an invention but a set of paradigms because of a technology revolution. One of the major impacts industry 4.0 will have on the country remains its effects on the country’s workforce and industry. But this technological revolution means some jobs of today will not be in existence in the near future and a completely new set of jobs will emerge. This means that there are possibilities to gain new skills so as to fulfil these exciting new roles.
“People need basic computer skills in this revolution. Africa must not lose out. By moving forward, there will be certain jobs that will be lost forever, but new ones created too.”Dr Visser emphasized that South Africa needed to embrace innovation and become “people-centric”.
“The 4th industrial revolution is not an American strategy. It’s happening because technology is evolving and everybody must be included…One thing robots cannot be is human.” said Visser.
He said we were likely to see small businesses become critical in this revolution, particularly in the manufacturing sector.
“Our young people are born into an era of technology. They understand it and know it; they up skill themselves purely by access to information. So access to information will revolutionise education and small businesses must be able to access these technologies.”
Delegates heard that people were scared of automation, artificial intelligence and the revolution had the potential to widen the gap between income groups.
“Automation and artificial intelligence is scary but we are not looking at replacing jobs. We need to augment jobs. This revolution is more about convergence and collaboration,” he said.
For this to work, relevant individuals from government, business and societal groups needed to be sitting at the same table at the same time.
Jarana, meanwhile, said skills for this revolution were critical so that no one is left behind. He said poor children needed access to the same digital education as rich children, and that pragmatic action was required from government to move forward.
This revolution, he added, would likely challenge international trade agreements, and an advisory council dealing with different parts of the economy, may be established.
Expert view added, This revolution is underway and Mzansi needs to embrace mobile connectivity, artificial intelligence, big data and the Internet of Things (IoT).
This will make use of machines that will optimize the processing of goods, making manufacturing more efficient.
The production and delivery of quality goods and services will become much faster and cost effective, and therefore requires an enabling environment.
Meanwhile, in related developments, Selebogo Molefe, a Business Matchmaker and Co-founder of THUD & The People’s Fund argues that government spends just over R600 billion a year to procure services from businesses and enact its mandate.
Molefe says government is the biggest buyer of anything in South Africa.
“In line with understanding its power, it has made a conscious effort to try stimulate the growth of small businesses, by committing 30% of its total spend to small businesses.
This means a total of R200 billion of its spending is earmarked for emergent small businesses. The problem with this though, is that most small businesses do not have the capital to execute on the jobs and then receive payments 7 to 60 days after completing the job. This is a major contributing factor to delays in service delivery for the citizens of the country, remarked Molefe.
He asks, “What if from as little as R100 you could fund these entrepreneurs and make a profit too?”
“Welcome to Crowdfunded Purchase order financing. We all contribute to building the country and all share in the proceeds,” adds Molefe.