Ride 4IR wave

While it can be taxing to look at SA’s government policies, political declarations, and economic and social features, when trying to prepare for a Fourth Industrial Revolution (4IR) future, countries that are able to improve their lot or turn their luck are those that do one simple thing – become flexible. This is what policymakers must do: Those leading government must realise that a multistakeholder approach that includes companies and innovators and disruptors must be adopted;

Government must collaborate with employers in sectors that have high automation potential; and

An education system that makes the biggest contribution is one that is agile, fosters innovation, evolves as work changes.

A highly skilled labour force will always be the driver that determines how fast an economy adopts accelerating technologies. It is a precondition for lift-off: the better and more highly skilled the worker, the more likely it is that they will be able to adapt and work side by side with machines.

If business doesn’t put its cards on the table and work with government, everyone will be affected.

One of the weaknesses in South Africa’s economy is productivity, and while labour may not want to hear this, reports issued by StatsSA are full of evidence that the country’s productivity has been on a steady decline.

As we face the inevitability of a world economy characterised by a machine-dominated workforce, we must ask one of the most central questions of the economy: how will productivity be increased? If we can increase productivity, and if wages rise, along with profits, the economic machine can start again – and this could become the much-needed incentive for big companies to invest more of their capital.

For a country with an increasingly young population, productivity growth matters because it drives innovation, it can increase real wages, and it can enable the economy to grow.

Molopyane is a mining and labour analyst. She’s also the founder of Creative Voodoo Consulting.