Government’sResponsetotheFourth

IndustrialRevolution

CONSUMERGOODSCOUNCILOF

SOUTHAFRICA(“CGCSA”)ANNUAL

SUMMIT2018

WHATISTHE4TH INDUSTRIALREVOLUTION

2

OPPORTUNITIESOFTHE4TH INDUSTRIALREVOLUTION

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• Potential to raise global income levels andimprove the quality of life for populationsaround the world.

• Technology has made possible new productsand services that increase the efficiency andpleasure of our personal lives

• Technological innovation will also lead toefficiency and productivity which will opennew markets and drive economic growth.

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• New technologies and platforms will increasingly enable citizens to engage with Governments, voice

their opinions, coordinate their efforts, and even circumvent the supervision of public authorities.

• Governments will increasingly face pressure to change their current approach to public engagement

and policymaking.

• Legislators and regulators must continuously adapt to a new, fast-changing environment, reinventing

themselves so they can truly understand what it is they are regulating.

• Governments and regulatory agencies will need to collaborate closely with business and civil society.

• Governments will not be able to address emergence of digital economy in isolation but must build

and develop capacity to drive the process robustly

FOURTHINDUSTRIALREVOLUTIONIMPACT

IMPACTOFTHE4TH INDUSTRIALREVOLUTION

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Impact on Business• New patterns of consumer behaviour are forcing companies to adapt theway they design, market, and deliver products and services.

• Access to global digital platforms for research, development, marketing,sales, and distribution, can oust well-established incumbents faster thanever before.

• Forcing companies to re-examine the way they do business as businessleaders need to understand their changing environment, challenge theassumptions of their operating teams, and relentlessly and continuouslyinnovate.

Impact on People• It will change not only what we do but also who we are: our sense ofprivacy, our notions of ownership, our consumption patterns, the time wedevote to work and leisure, and how we develop our careers, cultivate ourskills, meet people, and nurture relationships

• One of the greatest individual challenges posed by new informationtechnologies is privacy.

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FOURTHINDUSTRIALREVOLUTION– WEFREPORTONCOUNTRYREADINESSFORFUTUREPRODUCTION

OPPORTUNITIES

ReadinessDiagnosticModelFramework

ReadinessforFutureProductionReport(WEF,2018)

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SOUTHAFRICACOUNTRYREPORT

• SouthAfricaisrankedasanascent(limitedproductionbaseandatriskforthefuture)andwithinthetop50countries.Leadingcountriesinclude;China,Japan,Germany,SouthKoreaandUSA.

• SouthAfrica’smanufacturingshareoftheGDPhasdecreasedto12%sinceearly1990s.

• SAhasstrongeststructureofproductioninAfrica.

• SAhasabilitytoinnovatewithastronginnovationcultureandentrepreneurialactivitiesaresupportedbysophisticatedfinancialsector.

• Humancapitalremainsthemostpressingchallenge,withshortageofengineers,scientistsanddigitalskills.

• Stablepolicyenvironmentbutneedtoimproveitsinstitutionalframeworkstorespondtochange.

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SKILLS4.0

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PROPOSEDNATIONALFOURTHINDUSTRIALREVOLUTIONFRAMEWORK

National Fourth Industrial Revolution Framework

Dig

ital S

ocie

ty

R&D

and

In

nova

tion

Skills

Dev

elop

men

t

Econ

omic

Pol

icy

Incl

usiv

e G

row

th

National Fourth Industrial Revolution Implementation & Monitoring

Sectoral Engagements & Partnerships

Presidential Commission on Fourth Industrial Revolution

Indu

stry

and

M

anuf

actu

ring

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TheCommission shallconsiderthefollowingissuesindevelopingaNationalActionPlanontheFourthIndustrialRevolution:• HowshouldSouthAfricacharacterizethe4thIndustrialRevolutioninregardtoitssocialandeconomic

aspirationsandpriorities?• WhatisSouthAfrica’sstateofreadinesstowardstheFourthIndustrialRevolution?WhatareSouthAfrica’sunique

competitiveadvantages(localandinternational)intheseareas:developmentsinInternetofThings,genetics,artificialintelligence,robotics,nanotechnology,3Dprintingandbiotechnology?

• WhatwillbetheimpactoftheFourthIndustrialRevolutionongovernment,businessandsocietyasawhole?• WhataretheopportunitiesandthreatspresentedbytheFourthIndustrialRevolution?• DoesSouthAfricahaveadequateskillsfortheFourthIndustrialRevolution,ifso,inwhichareas,andwhereare

thegapsaswellastheskillsthatwillberequiredgoingforward?• Howdowepreparetheworkforceformultiplecareerchangesthatcutacrossoccupationalboundaries?• WhatareSouthAfrica’sResearchandDevelopment(R&D)capabilitiestosupporttheFourthIndustrial

Revolution?• WhattechnologiesshouldbemanufacturedlocallytogrowtheICTandrelated4IRindustries?• WhatstrategiesareneededtoensuretheuptakeandusageofICTsandother4IRtechnologiesinothersectorsof

theeconomytodriveinnovation,SMMEparticipationandjobcreation?• Whatarethelikelyunintendedconsequences(suchasjoblosses)andhowtomitigatethem?• Whatmechanismsareneededtoensureeffectivecoordinationandcollaborationamongstallstakeholders?

TheCommission shallundertakehighlevelresearch,internationalandregionalbenchmarking,andengagestakeholderswithinandoutsidegovernmentinmeetingsandotherforawithaviewtoobtainandconsidertheviewsofacrosssectionofsocietalroleplayersinthedevelopmentoftheFourthIndustrialRevolutionNationalActionPlan.

SCOPEOFTHEPRESIDENTIALCOMMISSION

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

Integrated ICT Framework

WHOLE OF GOVERNMENT APPROACH

MULTI-STAKEHOLDER COOPERATION

OverarchingVision:EnsureuniversalserviceandaccesstoalICTnetworks,platforms,contentandservicessothatallSouthAfricansregardlessofwhotheyare,wheretheylive,theirsocialoreconomicstatus,

benefitfromtheopportunitiesofferedbytheICTsectortoimprovetheirqualityoflife

Supply-sideMeasures

PostalSectorReformInstitutionalFrameworks

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Demand-sideMeasures

Open Access Regime Policy Radio Frequency Spectrum PolicyRapid Deployment PolicyNew Licensing Framework Internet

Digital Transformation of Government Digital Access to promote trust and security in the use of ICTsDigital Inclusion to create an enabling environment to promote e-commerce

Defines new role of the postal sector and SAPO ito universal accessDelineates new market structure, competition and licensing frameworksExpands role and obligations of Postbank

Ikamva National e-Skills InstituteEvolution of USAASA and USAF into Digital Development Fund ICT Sector Commission and Tribunal SOC rationalisation

ICT POLICY, LEGISLATIVE AND REGULATORY FRAMEWORK

Making South Africa a Global Leader in Harnessing ICTs for Socio-economic Development

HIGHLEVELIMPLEMENTATIONFRAMEWORK:NATIONALINTEGRATEDICTPOLICYWHITEPAPER

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LegislativeProgrammeAction Amendment ofthefollowinglegislationICTsectorlaws:ElectronicCommunicationsAct(ECA),ElectronicCommunicationsand

TransactionsAct(ECTA),PostalServicesAct(PSA)andStateITAgencyAct(SITA)

DevelopmentofthefollowingBills(rationalisationofcurrentinstitutions):ICTCommissionandTribunalBill,IkamvaNationale-SkillsInstitute(INESI)Bill,DigitalDevelopmentFund(DDF)BillandICTStateInfrastructureBill,SouthAfricanPostOfficeAmendmentBill

Progress § Bills tobeintroducedtoParliamentin2018/19ECA,INESI,PostalServicesAmendmentBills§ BillstobeintroducedtoParliamentin2019/20DigitalDevelopmentFund,ICTCommissionandTribunal,Postbank

AmendmentBill§ BillstobeintroducedinParliamentin2021/22StateITAgencyAmendmentBill,StateICTInfrastructureBiIl,Electronic

CommunicationsandTransactionsActBill

Nextsteps Cabinethasapprovedthe SOCRationalisationFrameworkDocument,BusinessCasesbeingdevelopedtosupportlegislationdraftingDevelopmentandapprovaloftheBusinessCasestoestablishtheICTSectorCommission&Tribunal,DigitalDevelopmentFund,SITAandStateInfrastructurecompanyDevelopmentofMoneyBillfortheDDF

Impact Policy coherenceandcertainty,enabledenvironmentforinvestment,enhancedcompetitivenessofthesector,consumerprotection,transformation,improvedcapacityoftheStatetodeliver,universalserviceandaccess,openingaccesstocriticalICTInfrastructure,modernisationofSAPOandtransformationofthepostalsector

Timelines § ECAandINESIalreadyintroduced§ PostalServicesAmendmentBillinCabinetCommittee17/10/2018§ DDFICTSectorCommissionandTribunalBilltobegazettedforpublicconsultationbyendoffinancialyear§ InputintotheFinancialRelatedMattersAmendmentBill– tosupportthePostbankAmendments

Based on M. Porter competitive strategy for countries & WEF classification

Efficiency Driven Economy

InnovationDriven Economy

Factor Driven Economy

Source: ITU

SouthAfricaisclassifiedasanefficiencydriveneconomybutcould

beleftbehindwithoutfurtheractions

Economy Classification

CompetitiveSMMEs

DynamicHighTech

Companies

EmpoweredandInclusive

Society

Vision – Digital Transformation Centre

CorechallengesinDigitalTransformation

Barrierstodigitaltransformation:• Lackofcoordinationorofmechanismstodevelopcontextualandrelevantpoliciessupportingdigitalinnovationandentrepreneurship;

• Unclearrolesorengagementofstakeholdersindevelopingtheirinnovationecosystem;

• Missinginnovationcapabilities,especiallysoftinfrastructure;• Suboptimalintegrationofinnovationecosystemsintokeysectorsoftheeconomy;and

• Theimpactofthefast-changingICT/telecommunicationenvironment.

ITU-D Innovation

PreIdea&Culture

Ideation

Startup “ValleyofDeath”SME High

GrowthProfitLoss

EntrepreneurshipPhase

Pre-Idea Ideation Startup The“Valley ofDeath”

SME

Entrepreneurs ENTREPRENEURIALINTEREST

ENGAGEWITHPROBLEMS

DEVELOPBUSINESSMODEL

BUILDCOLLABORATION

EXPAND

Finance RESEARCHFUNDING SEEDFUNDING ANGEL INVESTEMENT VENTURECAPITAL BUSINESS FINANCE&LOANS

EntrepreneurialSupport

ENTREPRENEURIALEVENTS

HACKATHONS&COMPETITIONS

CO-WORKINGANDSUPPORT

INCUBATORS&ACCELERATORS

BUSINESSASSOCIATIONS

Private Sector SUCCESSSTORIES RESEARCHPROGRAMS

LABPROGRAMS B2B&SUPPORTSERVICES

SKILLSTRAININGPROGRAMS

Academia ENTREPRENEURCOMMUNITY

BASICRESEARCH SPIN OFFS SOFTSKILLSTRAININGS

HUMANCAPITAL

PublicSector VISION& STRATEGY IPANDR&DSUPPORT TAXSUPPORT PUBLICPROCUREMENT

TRADEPOLICY

South African Ecosystem Maturity Map for Digital Transformation

DigitalInnovationdynamics

DigitalInnovationCapacity

Digitalinnovation

ofKeySectors

Partnership

KnowledgeSharing

InsightResearch

CoreServicestodevelopecosystem

Cross-cuttingServicestomature

ecosystem

Services to Ecosystems

MakingSouthAfricaaGlobalLeaderinHarnessingICTsforSocio-economicDevelopment18

Digital Transformation Centre – Initial programs

•Expand4GandEvolvetowards5Gsupportedbyfibre expansion,IoT

• Standardisation•Conformanceandinteroperabilitytesting

•Cybersecurity

• Skills(Policymakers,Regulators,SMMEs,Workers,learners)

• Jobs– FutureofWork• Inequality

•Africa’susecases•DevofICTApps•BusinessSupport/Ecosystempartnerships

•DataPolicyandStrategy•AIStrategy•Cloudpolicy•Blockchaintoenableseamlessworkingspheresofgovernment

1.PolicyandGovernance

2.Innovation/SMMEs

3.Connectthe

unconnected

4.SocialImpact

ADTC

ConceptNoteReviewworkshopAugust14-15

TelecomDurbanConsultation

RoadmapDesignworkshopTBD

Launchevent

FundRaising FullImplementation

FirstServicesdeployed

Plan

Design

Implement

Monitorandevaluate

Roadmap – Digital Transformation Centre

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AFRICA’SCAPACITYTOADAPTANDEXPOSURETOFUTUREOFJOBS

WEF:TheFutureofJobsandSkillsinAfrica(2017)

National Digital Skills Strategy

SA SMME e-Mall

https://drive.google.com/open?id=1ZU5RcLzJ2s1Apb08-bbIUxe3dyv2b9Ge

23THANK YOU