In October 2024, after much anticipation and uncertainty, the department of communications & digital technologies published a draft National Artificial Intelligence (AI) Policy Framework for public comment, a crucial first step in developing a final comprehensive policy around the use of the technology within SA to drive infrastructure, digital, economic and social growth, pinning the country on the global map in AI innovation.
The publication of the proposed framework follows the establishment of a Presidential Commission on the Fourth Industrial Revolution by President Cyril Ramaphosa in 2020. At the time, Ramaphosa predicted that by 2030 the country would have “fully harnessed the potential of technological innovation to grow our economy and uplift our people”. This is especially critical, as AI remains a cornerstone feature in the fourth industrial revolution.
However, according to the Institute for Security Studies, while SA is the second-largest economy on the African continent and would ordinarily have been expected to lead the charge in AI development, other African countries such as Nigeria, Mauritius and Rwanda are already on their way to developing their own AI strategies and policies. Rwanda, for one, will be hosting Africa’s inaugural Global AI Summit later this month to discuss Africa’s role in the global AI economy.
With the AI industry expected to generate $1.2-trillion by 2030 across Africa, representing a 5.6% rise in the continent’s GDP, SA needs to shift gears timeously to reap the rewards of this growing technology.
The National AI Framework is a commendable first step for the country. While it requires further panel beating to fully realise the potential of this industry, it rightly acknowledges that consideration of the ethical, social and economic implications is needed for the benefits of AI to be “broadly shared” and that “risks are managed effectively”.
SA’s private sector remains ready to fully leverage AI technology for the benefit of the country.
After all, without any framework or regulation, the world has already been exposed to the dangerous and unethical use of AI such as the prevalence of deepfake content over the past decade. The framework identifies ethical development as its cornerstone, underscoring the need for guidelines to ensure AI systems are transparent, accountable and designed to promote fairness.
Most notably, the draft policy provides a succinct analysis of past, present and future elements that require consideration towards a final policy. Where it concerns the past, a material digital divide remains pervasive in SA, augmenting existing historical injustices. Resistance to change in many bureaucratic-heavy institutions, with a regulatory regime not capable of adapting to the rapid change in technology, remains prevalent. Addressing these weaknesses concurrently goes without saying.
Nonetheless, the technology continues to develop around the world, creating the urgency for SA to adopt a framework to leverage these innovations to the maximum. As the draft policy indicates, AI can address many social demands in critical economic sectors such as agriculture, healthcare, education and public safety. With a coalition government in disagreement on raising any new taxes, and a proposed raising of VAT at the heart of the recent postponement of the budget, AI can drive critical economic growth to assist the state in finding revenue elsewhere and manage our record high debt-to-GDP ratio.
Despite this, the long-term benefits far outshadow the negatives. AI can be an instrument for social good but remains a largely untapped industry. If fully integrated through a data governance framework, new job opportunities can be created, mitigating the current unemployment levels sitting around 32%. AI can also go a long way in future-proofing SA.
The country remains a water-scarce nation, with changing climate patterns threatening the sustainability of water supply. AI-powered sensors installed in pipelines can detect leaks and predict failures before they get out of hand, while machine learning models can analyse past data to optimise water usage. In other instances, AI technology has the capability to process satellite images to predict droughts ahead of time, enabling the agricultural sector to plan. This alone would assist SA in achieving at least two sustainable development goals — goal six: clean water and sanitation and goal 13: climate action.
SA’s private sector remains ready to fully leverage AI technology for the benefit of the country. Microsoft has committed to training 1-million South Africans in AI and cybersecurity by 2026, while Huawei has significantly expanded its cloud storage services in the country over the past five years, in line with increasing demand for more advanced computing solutions.
Considering AI is built on data, the expansion of data centres is instrumental for AI’s success in SA. On top of this, MTN has entered into a partnership with China Telecom and Huawei to enhance its 5G, cloud services, AI capabilities and business solutions. There are many more examples, but it is glaringly clear that SA is ready to bolster this industry.
While AI is nowhere near advanced stages such as building and developing applications on its own, and this has been the subject of much discussion around the future of AI, it nonetheless underscores the need for industry experts to play a primary role in leveraging its full value.
The government has its role to play, too; expedite a policy framework, with the inputs and endorsement of industry stakeholders so SA can maintain a competitive edge against its counterparts on the African continent and continue building a name for itself.
• Novitzkas is chair at Specno.
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