South Africa is an African leader when it comes to digitalisation. The International Telecommunication Union ranks the country’s ICT development index at 4.96 out of 10, ranked at number 92 out of 176 countries. It boasts the highest mobile phone – 84 per cent – and internet penetration – 53 per cent – rates in Africa. The African National Congress-led government has established a Commission on the Fourth Industrial Revolution, an area many believe the country can benefit from its connections with China to leapfrog its infrastructure gap.
China has enjoyed what is termed domestically as a ‘Golden Era of Internet’. Underpinned by research and development, innovation, and entrepreneurship in digital technologies, it has occurred at a breakneck speed. Consequently, China is now not only a pioneer in Artificial Intelligence, big data and the Internet of Things, but also a global force in the evolving international digital economy. China’s tech innovation, notably in digital areas and advanced 4G and 5G networks, is expanding globally, especially in Africa.
China’s digital transformation did not just happen overnight. In addition to significant government investment, its digital advancements can be attributed to some unique socio-cultural factors. The user-centricity and market-driven approach of Chinese tech founders have been essential, with tech leaders pushing the boundaries in highly competitive environments. This pragmatic drive is matched by a highly adaptive population, quick to embrace new technologies and digital services, which in return has created a dynamic market for tech companies to grow.
Chinese tech giants like Huawei and ZTE are major players in the South African market. Despite the presence of these two digital giants, South Africa’s digital connectivity still lags with several rural schools, public health institutions and communities remain unconnected. The rollout of 4G and 5G in rural areas is proceeding at a snail’s pace. This is despite Chinese companies like Huawei partnering with telecommunications operators like Vodacom and MTN to deploy 4G and 5G networks. Yet these digital infrastructures are still to diminish the existing digital divide between rural and urban areas.
South Africa should be able to leverage Huawei’s skill set, prowess and capacity to effectively build sound digital infrastructure. But that is not happening.
The country still has numerous opportunities to harness the expertise, technical know-how, and infrastructure from its ally. Considering China’s keen interest in South Africa’s natural resources, its ICT and clean energy markets, the outlook isn’t entirely negative. The launch of China’s Huawei Innovation Centre in 2023 is one milestone development hailed by the South African government as aiding not only South Africa but the continent to leapfrog into the Fourth Industrial Revolution. While this is welcome, South Africa and the rest of the continent still suffer from foundational challenges that mitigate against the full realisation of digitalisation, such as limited access to electricity and the internet, particularly in rural areas. Economic disparities have also widened the digital divide and digital literacy gap, especially affecting underserved communities.
