With the right leadership, Africa can flourish
THE World Economic Forum on Africa 2017 has come at a time when South Africa finds itself in the midst of economic and political challenges. It provided a platform for all stakeholders from the African continent to deliberate and formulate solutions for the future of our continent, and at the same time explore new opportunities, most importantly how the continent’s leadership can steer the process to grasp opportunities and achieve inclusivity for Africa’s people.
In order to understand the meaning of the Fourth Industrial Revolution, which was the broad theme of the Forum, one has to understand the first three industrial revolutions in the context of progress and modernization. The First Industrial Revolution used water and steam power to mechanise production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production.
The Fourth Industrial Revolution we are currently experiencing is building on the Third – it is the digital revolution that started from the latter half of the last century, and is characterised by a multitude of modern technologies coming together, resulting in the blurring of the lines between the physical, digital, and biological spheres. This presents huge opportunities for Africa in a manner that the first three revolutions could not bring as they were concentrated in the Western world.
Despite the challenges facing Africa, there are factors that bode well for the growth of continent’s economy. The continent’s growth in the 21st century has been second only to emerging Asia. Africa has a young population whereas other continents are facing the challenge of an ageing population – this has the potential to lift the continent. The agricultural sector has the capacity to be a significant contributor to the economy as Africa is home to 60% of the world’s uncultivated arable land. It is estimated that over the last few years, the continent has invested $72 billion (about R949 billion) in new infrastructure.
Today, South Africa, like the rest of Africa, is faced with serious challenges. According to projected statistics, the economic growth forecast for the continent over the coming year is expected to be lower than the 5% average of the past decade. However, this is not all doom and gloom for Africa as can be seen from countries on the continent which are experiencing growth in their economies and have attracted significant foreign direct investment.
Looking specifically at South Africa, let us examine the challenges. The country is experiencing upheavals the likes of which have not been a consideration since the dawn of democracy in 1994. Political uncertainty and leadership weaknesses have resulted in our fellow citizens becoming disillusioned and have lost confidence in the leadership of the country. South Africa has been affected by the fall in commodity prices and added to this, growing unemployment, ratings downgrades, climate issues such a drought, decrease in foreign direct investment and the lack of confidence by the business sector to make capital investments pose serious challenges.
The outlook may be grim, but it is imperative that these be issues be addressed swiftly so that lasting and tangible solutions can be implemented. There is an urgent need for the diversification of the economy with less dependence on commodities, and to focus on the revitalization of the manufacturing sector, investment in the tourism sector, tapping into the potential of the creative industries and nurturing human capital and innovation. Investment in these sectors have the potential to alleviate unemployment and must, as a priority, create jobs for young people.
Additionally, the Fourth Industrial Revolution offers new opportunities to achieve inclusive and sustainable growth by promoting market integration in Africa and by co-operating through industrial corridors and creating new ties with African economies that will benefit from South African skills and expertise.
While South Africa is facing tough times, it has a proud and proven history to be a resilient nation, it is a nation that can work together for the common good of its people. South Africa has the potential to flourish, and it has the elements required to build a prosperous nation and ensure there is sustainable economic growth that will build a bright future.
It is vital this process of economic growth and the rejuvenation of the economy be marshalled by effective leadership. The words of the World Economic Forum’s founder, Prof. Klaus Schwab at the opening session of the Forum on Africa is particularly relevant and holds true in this context,
“Leaders to be responsive to the demands of the people who have entrusted them to lead, and to also provide a vision and a way forward.” Concluding on an inspiring note, Schwab said, “Through frank dialogue, we will define fact-based, relevant and practical solutions for the different issues, focusing on the need for a long-term vision and positive narratives, but always with an enduring passion and compassion for Africa and its people.”
We believe that the deliberations at the World Economic Forum on Africa were robust and the outcomes provided a basis for the political and economic leadership of South Africa and the continent to chart a way forward to achieve inclusive growth and prosperity for the entire continent.