We must go digital to realise economic potential

AFRICA is ripe for transformation. It is home to nine of the world’s 15 fastest-growing economies, making it an increasingly attractive environment for global business investments. SA in particular is seen as a vibrant country with many attractive industries and opportunities. The country has made great strides in technology, ranking second in sub-Saharan Africa on the networked readiness index. This, combined with the 147.7-million devices that will be networked in SA by 2018, provides great prospects to drive growth and enhance social and economic wellbeing.
 
I have long believed that technology and education are the two great equalisers in life. Today I see technology at an inflection point at which it can transform local economies and create many new opportunities, with the increased digitisation of countries. Digitisation, if harnessed by both the private and public sectors, can allow SA to position itself as a leading developing economy.
 
With the most advanced network in Africa, SA’s telecommunications sector has already connected millions of citizens and created thousands of jobs, proving what is possible with strategic investments in technology. These connections are just the first step. With only 11% of SA’s population using the internet and almost 50% of the users being under the age of 25, there is still huge potential for growth.
 
To realise this opportunity, companies and the government must work together to increase access to affordable and reliable technology for SA’s population. The true promise of digitisation in SA is equal opportunities for all.
 
By increasing access to the tools of the global economy — such as phones, computers and the internet — citizens in historically disadvantaged communities can learn the skills they need to succeed. For example, a connected country will drive demand for job creation of trained professionals with skills in information and communication technology, which in turn will help to maintain the networks that form the backbone of the country’s economic prosperity.
 
Evidence of what digitisation has to offer can already be witnessed with the success of Cisco’s community knowledge centres (CKCs), which use technology to make sustainable improvements to quality of life in underserved areas in SA, as well as Ethiopia, Kenya, Rwanda and Uganda and lay the foundation for local governments and organisations to build on this. With 38% of Ratanda CKC users reporting success in finding a job, the effects of the programme have been widespread.
 
Initiatives for better training and career opportunities have been furthered through Cisco’s Networking Academy, which teaches basic and advanced classes in networking through partnerships with high schools, universities, governments and nonprofit organisations. Since the first launch in 1999, the academies have trained about 30,000 students, equipping them with highly in-demand skills to successfully compete in the global economy.
 
This is just the beginning for SA. Digitisation of the country will lay the groundwork for what I believe is the next phase of the internet — the "Internet of Everything". As the networked connection of people, process, data and things, the Internet of Everything has the potential to further accelerate the country’s pace of change. Cisco predicts that the Internet of Everything can create R152.58bn of economic value for SA’s public sector over the next decade, while also solving some of the country’s most pressing problems.
 
For example, through the adoption of a smart-grid renewable energy system, SA can begin to move away from its reliance on coal power. Energy can be saved by equipping street lights with intelligent sensors, so they can be dimmed or brightened based on motion. Healthcare can be improved by connecting rural patients with chronic diseases to doctors, without ever having to leave their homes. These are just a few of the many outcomes that the Internet of Everything can make possible for SA.
 
In order to bring about effective and lasting change through technology, companies such as Cisco have to work with the South African government to rethink our engagement with the citizens and the services we provide them. This means not being afraid to try new solutions, take strategic risks and collaborate openly between the public and private sectors. We are at a point where we can act, rather than react, to the opportunity digitisation holds for SA. The time for us to start doing so is now.
By Business Day Published: Sep 16,2014
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