The Fourth Industrial Revolution: Can Africa Hold a Place?

Corresponding author: Fisayo Fagbemi, Research Fellow at the European Xtramile Centre of African Studies (EXCAS), Liège, Belgium
fisay4real@yahoo.com

John Oluwasegun Ajibike, Department of Banking and Finance, the Polytechnic Ibadan, Ibadan, Nigeria
ajibikky@yahoo.com

The Fourth Industrial Revolution (4IR) has come with huge opportunities and challenges for the African continent. Given that the 4IR results in a complete societal shift, potential risks could lead to greater challenges. Proper awareness and understanding are vital as Africans increasingly embrace new technologies. Since African countries cannot afford to remain on the periphery of the international economic order, bridging education and skill gaps through the overhaul of African education systems is critical to helping Africa hold a meaningful place in the 4IR. Indeed, playing a fundamental role in this era is vital for Africa.

Introduction

The Fourth Industrial Revolution (4IR) has been the major term of structural transformation across the globe. This is as a result of the fact that modern technological advances have forced our society to make fundamental changes to how its people live and interact with one another and the way they work. The 4IR was first made known to the public by Klaus Schwab in January 2016 at the World Economic Forum (WEF). It was the main keyword in Klaus Schwab’s book that year. At the forum, the discussions about the so-called digital revolution gained considerable attention, asserting that global society is gravitating towards a new era of development. In this era, the world is fundamentally changing by disruptive technologies, as it describes the fusion of the digital world through advances in artificial intelligence (AI), robotics, the Internet of Things, 3-D printing, quantum computing, and genetic engineering which will affect almost every aspect of human life.¹ Although there seems to be no consensus as to whether we are already in the initial phases of another industrial revolution or whether we are only experiencing an acceleration of the third industrial revolution’s (3IR) technologies, it is apparent that we are in unchartered terrain.² If the 4IR is becoming a reality, as authors like Ndung’u and Singé³, and Moll⁴ claim, then technological advancement would ultimately be a force of political, economic, social, and environmental change, thereby creating opportunities and challenges. During the past industrial revolutions, the African role has grossly been negligible (i.e., Africa has not contributed significantly to global technological development). Africa should be challenged by the groundbreaking digital revolution that characterizes this era.⁵

In light of the rising concern regarding the enormous challenges facing African countries, this paper aims to investigate the large gaps in the continent’s digital infrastructure and intellectual development. In addition, with the increasing utilization of new technologies in the 4IR, this paper will explore whether there will be a difference between the past and the present in the African continent. The paper is structured as follows: the first section describes the possible features of the 4IR; this is followed by a section on the 4IR and Africa; the other sections address the economic impact of the 4IR on Africa; and the piece concludes with final remarks.

Possible Features of the 4IR

Around the world, while it is generally recognized that risks and opportunities are associated with the 4IR, there are potential fundamental social transformations that accompany this new phase of development:⁶

Anticipation of a technological revolution: the presence of more advanced digital technologies, which will involve the marriage of physical assets (like land and buildings) and new technologies (such as modern machines and automation).
The labor process will be highly transformed in this era: there will be increased demand for workers with advanced education and more advanced skills. In addition, many workers may be replaced by automation.
Changing work interactions in the workplace: physical contact among workers in the workplace will be significantly reduced. The COVID-19 pandemic has encouraged the adaptation of remote communication using digital technologies.
A change in social pattern and relations: the emergence of new norms and values of uniformity and diversity.
The international redistribution of wealth and production (international transformations): the possible structural deepening of the global inequalities (the gap between the rich and poor countries may widen), and unequal access may favor wealthier nations or individuals.

According to Moll,⁷ the 4IR is still nascent — it seems not to be fully taken off. The expected great transformation is characterized by long-term socio-economic change at a structural level. Insights in this regard are critical to preparing for intense technological innovation, which will have lasting consequences for the global economy. Identifying these key features necessitates the need for Africa to make early preparation. It is significant for African countries to recognize these crucial elements as criteria for meeting the demand of the 4IR. Africa must get out of the state of dependence by focusing on rebuilding the social, economic, and political system to promote change and reduce the domination of the ‘global industrial nexus’ (such as Germany, France, Italy, Britain, the United States, Japan, etc.). Undoubtedly, avoiding being marginalized by the realities related (technological advances) to this era is crucial for Africa.

The 4IR and Africa

The 4IR has come with huge opportunities and challenges for the African continent. The level of disruption associated with this revolution is unprecedented because, globally, things that will have a significant impact on our lives are being created. In other parts of the world, we can easily find the right policies that support start-ups (like Europe and the American region). However, in Africa, ubiquitous weak governance systems (like pervasive corruption, political instability, and poor legal frameworks) in almost all countries in the continent remain an obstacle to quickly embracing and adapting to fundamental changes that the 4IR requires.⁸ Advancements in technologies will continue to alter work arrangements and result in new varieties of work. To be regarded as a revolution, it must be rooted in the technological breakthroughs linked with the digitally networked society that meet broader social, economic, and geopolitical transformations.⁹ Currently, Africa is not among the ‘global industrial nexus.’ This inherent position on the global map provides compelling evidence that many African countries are yet to be fully integrated with the current global trend. By implication, the present level of technological development in Africa may obscure the debate on the new industrial revolution, which can shape policy interventions focused on the vision of a 4IR.

Among continents, Africa faces a unique challenge under this circumstance, as data drives the 4IR. This requires an African reflection on the latest development. For the time being, technologies associated with the 4IR seem to be concentrated in a handful of developed economies. Latecomer economies (developing countries) often face barriers to entrance into an existing industry or market. This calls for grave concerns as to how Africa can catch up or leapfrog ahead with the continent’s current level of innovation capabilities. While the US is regarded as the most innovative world region in 4IR technologies, given the country’s firm presence in all technology areas of 4IR, Europe and Japan each represents about one-fifth of all international patent families (IPFs) in 4IR. Although with faster growth in recent years, the People’s Republic of China and the Republic of Korea account for another 10%.¹⁰ Such innovative drives can result in precariousness for the developing economies, especially for African countries, since the continent is nowhere to be found in the current development which will let them participate in globally shared economies.

It is worrying that Africa has not caught up in the excitement of the changing world of work. Any region that understands the place of technology in their economy (such as workforce and skill strategies, technological operation, and societal impact) will succeed in this era because they will be more flexible and responsive and more open to data-driven decisions. Unfortunately, in the current innovative trend, Africa seems to be lagging behind the rest of the world.¹¹ Hence, the question is: how can Africa find a place in the 4IR? The main concern is how the exploitative relationships (economic relations of globalization) between the advanced and underdeveloped economies will be abated. Oppression and exploitation of marginalized regions and countries of the world should not be allowed to continue in this development phase.

Essentially, the emergence of this new era must offer the optimistic message that Africa is on a trajectory of embracing radical technological innovation that is globally significant. There is increasing agitation that African countries need to challenge the dominance of the ‘global industrial nexus’ in this 4IR — the continent must cease being on the periphery of the international economic order. The protracted downward spiral of underdevelopment in Africa has to be altered by the widespread adoption of rapid technological change across countries.¹² This ideological strategy is driven by a call for fundamental socio-economic transformation in developing countries. These are visions of a 4IR anticipated to happen. The expected changes in the level of technology are so profound. Therefore, the immediate concern is to think strategically about the disruptive forces and technological innovation, describing the path to follow. Unprecedented paradigm shifts accompanying this development phase are well beyond changing the pattern of the business, economy, and society alone, but also ‘what’ and ‘who’ we ought to be. There should be a tendency towards ensuring that Africa maximizes the opportunities this revolution offers.

The economic impact of the 4IR on Africa

Research has shown that businesses and economies adopting an Industry 4.0-driven strategy tend to experience improved performance.¹³ The 4IR would have a profound impact on businesses and the economy. There is a clear-cut correlation between the use of new technologies and the growth of an organization.¹⁴ However, business executives and policymakers must understand how to leverage these (4IR) technologies to a significant degree or how their goals will be better achieved through implementing an Industry 4.0-driven strategy. Indeed, significant economic progress holds out for African re-industrialization.¹⁵ The 4IR, driven by the application of advanced technologies like automation, the Industrial Internet, and additive manufacturing, will enhance the building of new business models for the distribution of goods and services to the targeted customers. This era will encourage the development of new and technology-oriented skills; there will be significant changes in worker skill requirements (upskilling and reskilling of the workforce). Another potential gain from these technologies is that small-scale manufacturing performance may be boosted by being more competitive in their operations (the way of doing business will experience a significant improvement).

However, as the way economies and businesses operate today is changing, 4IR technologies may cause job loss for unskilled workers who lack the necessary skills required to catch up with the demand of the present age. Since the mode of business operations and expectations of customers will change profoundly, people with AI skills will become more relevant, and they are likely to be the only people considered or hired by employers. This implies that there will be a radical shift in the labor market in favor of technologically oriented people. The adoption of 4IR technology clearly demonstrates that building a sustainable economy becomes more challenging for less technologically advanced regions such as sub-Saharan Africa.¹⁶ The development hurdles facing many African countries may also cause the exacerbation of income inequality in the 4IR. For African economies striving to compete on the world stage, a complex set of challenges are offered by the 4IR. Yet, the force of disruption associated with new technologies remains a catalyst of change for Africa.

Concluding Remarks

The disruption potential associated with the 4IR around the world has been revealed. Proper awareness and understanding are vital as new technologies are becoming widely embraced. While it is clear that the possibility for significant advances is there for sub-Saharan Africa (SSA), there are some challenges we will need to be aware of that could leave the region behind the rest of the world. Potential risks could be too challenging for the African continent as the 4IR results in a complete societal shift. Hence, businesses and governments must proactively act to master the consequences that will follow the rise of new technologies. With this in mind, African workers have to update their skills – a critical reality as some jobs will disappear while new jobs emerge. But in African countries, technological and skill challenges are not easy to circumvent, which are currently undermining the capacity and sustenance of the scope that would allow SSA to compete and succeed. A plausible option is strategically supporting the development and application of 4IR technologies at a significant scale. In addition, it is essential that Africa bridges its education and skill gaps, as both represent the foundation for the acceleration of development and the building of a prosperous and inclusive future. This may be considered touching on programs and ways in which the continent can improve the technological literacy of its working population. Essentially, it is indeed imperative that African countries cease being on the periphery of the international economic order.

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