Simon Roberts and Thando Vilakazi

There is a range of changes relating to the digitalization of economic activity and the growing importance of digital platforms (including online platforms) which pose fundamental challenges to the existing set of rules for markets under economic regulation, competition law and industrial policy. The Industrial Development Think Tank, housed at CCRED, UJ, convened the first Expert Panel meeting on 22 July 2019 to assess and prioritise the key issues facing South Africa with regard to regulating digital platforms in the interests of inclusive growth.[1] The deliberations and reports from the panel will feed into the Presidential 4IR Commission’s theme on legal and regulatory frameworks, in which competition and data ownership are sub-themes.

Julius Nyamwena and Pamela Mondliwa

On 1st July 2020, the Protection of Personal Information Act (“POPIA”) came into effect after being introduced in 2014. POPIA positions South Africa in the mainstream of relatively well-developed data protection laws, regulating the collection, processing, and sharing of personal information. These controls over the use of personal data are but one aspect of data governance that countries around the world are implementing.

In addition to POPIA, South Africa needs an overarching data governance policy framework. A comprehensive data governance policy includes guidelines and laws to address data security, cybersecurity and cybercrime; the cross-border flow of personal and non-personal data; ownership of data; access to data, markets and platforms; and algorithm accountability.

Jason F Bell and Pamela Mondliwa

There is a clear message amongst South African policymakers about the need to build a more resilient and sustainable economy in light of the impacts of COVID-19. The details on South Africa’s plans to build such an economy are still emerging. Globally, it is commonly understood that climate change and environmental sustainability are important aspects of building resilience and sustainability. As such, it is important that South Africa’s post-COVID-19 economy is greener. At the same time, the fourth industrial revolution (4IR) and increased digitalisation of economic activity mean that 4IR and green economy strategies may need to be combined or design so that they are mutually reinforcing.

Thando Vilakazi

In March 2020, the Industrial Development Think Tank (IDTT), housed at CCRED at the University of Johannesburg, convened a second meeting of South African policy makers and local and international experts on digital platforms and economic development. The focus was to identify concrete policy options for South Africa in order to benefit from the rise of digital platforms.

A key implication of digitalisation is that value increasingly resides in data, which necessitates a different approach to regulation for digital markets. We note that the COVID-19 pandemic makes online, virtual and delivery platforms even more important, along with the appropriate policy framework. It also presents opportunities to rapidly shape the evolution of digital markets now for more inclusive outcomes in future.

Rory Macmillan

The Sustainable Development Goals (SDG) depend on the effective exploitation of data across numerous sectors. The wide host of issues relating to how data is to be governed in society today, whether globally, regionally or nationally is referred to here as data governance – a framework of policies, laws, regulations and processes that enable, guide, sometimes limit, and hold market participants accountable for, the collection, use and sharing of data.

Thando Vilakazi

Too little of the discourse on an economic growth strategy for South Africa has focused on addressing barriers to entry and putting in place mechanisms for ensuring effective participation of black-owned firms and small and medium enterprises in established value chains. The focus from the President’s office has mainly been on raising investment commitments from large enterprises as was demonstrated by last year’s investment summit outcomes.

Lorenza Monaco, Jason F Bell and Julius Nyamwena

If South Africa aims to build technologically competitive niches and deepen the automotive supply chain, a suggested option is to explore the potential for technological upgrading and localisation in plastic auto components. In this regard, looking at the path followed by Thailand can certainly provide interesting lessons.

Shingie Chisoro

Opening an exhibition on the 4th Industrial Revolution (4IR) at Parliament recently, the Minister of Science and Technology, Mmamoloko Kubayi-Ngubane, stressed that South Africa plans to use the 4IR opportunities to deal with poverty, unemployment and inequality – but also that the country needs new skills for the new industries and markets that will emerge. A point in case is the fruit sector which, as a high-value and labour-intensive industry with high export potential, is central to agriculture’s contribution to economic growth.

Simon Roberts and Nimrod Zalk

The recent focus on the price and quality of data services in SA has been on their impact on consumers. These prices are high. For example, mobile prepaid prices from the major networks, at close to R150/GB, are about three times higher than in countries such as Kenya, and disruptive local entrants have not managed to significantly dent these rates.

Sha’ista Goga

The rise of online retail internationally has raised an apocalyptic spectre of empty malls, dying city centres, local factory closures and rising unemployment. It also evokes images of a de-personalised landscape in which electronic orders are processed at automated warehouses and boxes of goods on conveyor belts in China are shipped directly to mailboxes around the world. This, while the international tech giants that facilitate transactions, profit without paying income tax.

Anthony Black

Until quite recently, the automotive industry was characterised by relatively mature, established technologies. With the introduction of electric vehicles (EVs) and more recently the prospect of self-driving cars, the sector is now at the cutting edge of global technological developments. The advent of electric vehicles is set to have a dramatic effect, not just on automotive manufacturing, but on industry more widely and on a range of other sectors such as energy and transport. This policy brief assesses the position with regard to the diffusion of EV technology, its impact and the questions that it raises for policy makers.

Pamela Mondliwa and Lorenza Monaco

The major disruptive technological changes in the plastic industry can be distinguished in terms of digitalisation, materials science, additive manufacturing even while we recognise that their effects are closely inter-related. These changes taken together are transforming the plastics factory. This transformation has implications not only for process and production efficiency, but also the landscape of international competition by allowing smaller manufacturers to achieve the market access and technological capabilities that previously could only be attained by medium-to-larger players.[3]

John Stuart and Anthony Black

The Cape Town ICT sector is a globalised and leading services sector within Africa. Many firms in the sector – not just the large multinationals – have international investors, clients, financiers, suppliers and partners. The sector is more than the sum of its parts because it serves as a localised hub of diverse enterprises, a skill pool, financier support, local and provincial government support and a strong physical infrastructure. It is the fastest growing services sector in the Western Cape.

Justin Barnes and Mbongeni Ndlovu

The Yellow Metals industry is undergoing profound transformation. Rapid technology advances such as telematics and remote monitoring, hybrid powertrain technology, and autonomous vehicles have recently emerged to challenge the status quo. Furthermore, the combination of technology advances and increasing refinement of customer preferences is leading to a fundamental shift in the industry’s commercial model: from the selling of products to the provision of Internet of Things (IoT) enabled heavy transport equipment services.

Robert Stewart

The terms digitalisation, “Industry 4.0” or “factory of the future” are used interchangeably to broadly describe the increasing potential to integrate the parts of the manufacturing value chain with the aid of digitalisation. There are multiple ways to approach this topic and this briefing document describes these disruptions in relation to the Clothing and Textile (C&T) industries through five interconnected themes: increasing data availability through object linked sensors; object interconnectivity providing large data sets and associated powerful business analytics; the application of artificial intelligence to big data to enable machine learning and responsiveness; new materials availability and capability; and finally the increasing use of additive technologies and robotics capable of working either autonomously or with human collaborators.

Sha’ista Goga and Anthea Paelo

The purchase of goods or services over the internet, is changing the nature of retailing. This is commonly referred to as e-commerce or online retail. It has benefitted consumers by providing increased choice and variety. However, the alternative business models and lower cost structures have led to concern over the scale, dominance and market power of the largest e-commerce giants, notably Amazon and Alibaba, and implications for other businesses.

Justin Barnes and John White

The global chemicals sector grew at a healthy 6% on average over the period 2006 to 2015. However, China contributed most of this growth, growing at an average 18% per year. As a result, its share of global chemicals production grew from 13% to 37%. Capital investment within the global chemicals industry is fully aligned with this trend, with 73% deployed in Asia-Pacific in 2013, up from already dominant 54% in 2006.[3] The rise and now dominance of China in the chemicals manufacturing sector is significant for the future of the sector globally.

Justin Barnes and Lisa Higginson

The food processing industry is predominantly characterised by high production volumes and low profit margins. Rising regulatory pressure, commodity price increases, more demanding consumer expectations and economic uncertainties are driving large food companies to search for new ways to optimise manufacturing processes and access new markets with a variety of new products. Digital technologies are emerging as a major opportunity to ameliorate these challenges.

Shingie Chisoro Dube and Reena Das Nair

Strong performance of the South African fruit industry coupled with strong growth in global demand has meant the industry is the central focus for agriculture-led growth. This growth is dependent on applying major advances in technology to underpin sustainable growth of the fruit sector in what can be termed the ‘industrialisation of freshness’.

Justin Barnes

The automotive industry’s technology direction is the focus of huge attention and substantial hype, much of which has been created by recent government announcements denouncing the future of the internal combustion engine (ICE), and the banning of such vehicles within governed time frames: The United Kingdom[2] and France by 2040[3], and Norway even sooner - by 2025[4].