The ANC-created Eskom disaster impedes digital transformation. The past week I had to accompany an elderly friend to the Department of Home Affairs in Caledon to collect an identity card. But what a catastrophic experience. I was wondering why so many people were waiting outside Home Affairs in the blazing sun, until I realised it was Caledon’s “privilege” to pay for the incompetency of government through load shedding from 10am to 12pm. Although the doors of Home Affairs were open, it was dark inside and since the computers were down, nobody could be served.
It was only an hour after the power came on that some people were allowed in. The officials were lethargic and progress was slow. It was only at 3pm that the collection of an identity card could be completed - a simple process that took seven hours. Interestingly enough, on the wall is a large poster: “The Department of Home Affairs declared war on queues.”
No generator, solar energy or battery backup was available and many of the people waiting in the 30.5 degree sunshine complained to me that they have lost their income for the day. Many, if not most, of these people are from poor communities and just wanted to register the birth of their child or the death of a beloved person. They are paying the price for a government that has done little since 2008 to solve the electricity problems. In contrast the private sector had generators or solar energy and were doing business as usual.
But then it dawned on me that the cost of South Africa’s electricity problems is much higher. It is a well-known fact that the rolling load shedding is taking its toll on various fundamental sectors of the economy and has led to a significant decrease in the gross domestic product (GDP). Some economists calculate that load shedding wipes out up to R4 billion per day from the GDP.
But even worse, a major effect of the government’s poor management of power utility Eskom is the hampering of technological progress that brought digital transformation and South Africa’s participation in the Fourth Industrial Revolution to a snail’s pace.
Communication networks
The large communication network providers in South Africa have been impacted severely by the rolling blackouts. Despite the president’s promise in his State of the Nation Address that data will become cheaper, the rolling blackouts and the related battery theft are not only threatening the reliability of our communication networks, but are also elevating costs.
Mobile towers need about 12 to 18 hours to recharge their batteries, but frequent load shedding above stage 2 makes this impossible, thus leaving millions of people without communication – even in emergencies. Because of battery theft the large network providers have installed generators or solar equipment at key network towers. MTN and Telkom have indicated that they are burning about 400 000 litres per month to keep their towers running and to charge emergency backups. Vodacom spent R2 billion on replacing batteries over the past two years, while MTN installed 2 000 generators.
The lack of a reliable electricity by government is thus not only driving communication costs up, but also leading to the inability of South Africans to communicate or access data since their local cellphone tower is down. This eventually severely impacts their ability to do business and be productive – further destroying the economy.
And due to the negative impacts of South Africa’s protracted and frequent rolling blackouts on the country’s mobile network operators and billions of rands being spent to ensure a service to their customers, the operators are unable to deploy new technologies as is done in the rest of the world.
Food security
Numerous producers of fresh and consumable food are experiencing serious problems. The lack of reliable electricity renders the use of farming technology impossible. Electricity is necessary for smart farming, maintaining the environment in poultry farming broiler houses, keeping the water pumps and irrigation running, and maintaining cold storage systems to preserve the freshness of foods in the ripening facilities that harvest avocados, bananas, and other fruits.
However, it is not only the lack of electricity, but also the frequent replacement of compressors due to power surges after load shedding that impacts farming negatively and eventually lead to increases in food prices. The whole cold chain in South Africa is currently threatened by the extended periods of load shedding.
In fact, a reliable electricity supply is central to modern farming practices, food security and South Africa’s competitiveness in the global market. Without electricity, technology progress in farming and productivity is severely hampered.
South Africa is stuck in the second and third industrial revolution
The degeneration of our energy source to the current level of dysfunctionality, disruption and damage (just as our ports, rail, postal service, safety and security, and many more) make technological progress, innovation and digital transformation extremely difficult, if not impossible. Due to the crippling effect of poor electricity reliability, South Africa is technologically and economically falling behind the rest of Africa and the world.
During the First Industrial Revolution, the use of steam power in South Africa increased efficiency in mining, agriculture and manufacturing, and accelerated the transportation of goods from manufacturing plants, farms, and the mines to the market. The First Industrial Revolution thus increased productivity in manufacturing and accelerated transportation.
The Second Industrial Revolution led to electrification and use of power equipment, machinery and tools, thereby introducing the assembly line and mass production. One of the first uses of electricity in South Africa was to light up mine tunnels to increase workers’ productivity. The use of electricity eventually spilled over into industry, the rail transport system, cities and private homes.
The Third Industrial Revolution, largely based on the development of the semiconductor chip, entailed a digital revolution. The so-called “second wave of the internet” in a large way also contributed to the development of innovative Third Industrial Revolution technologies.
The Fourth Industrial Revolution is characterised by intelligent machines, enabling human-machine interaction to achieve even higher productivity. It is driven by an increasing number of digital connections between people and machines and has led to many new technologies including artificial intelligence, virtual reality, augmented reality, blockchain, drones, the Internet of Things, robotics, 3D or additive printing, and simulations.
Unfortunately, the government’s inability to ensure a stable electricity supply severely limited the use of these Fourth Industrial Technologies. It can thus be argued that South Africa is still stuck in the Second and Third Industrial Revolutions, and will be for the next few years.
Although the president in his State of the Nation Address (Sona) on February 9, 2023 promised that South Africa’s devastating electricity supply problems would be solved within the next 12 to 18 months, South Africans have learned from past Sona promises that words come easier than actions.
Despite South Africa’s declared interest in taking a lead role in the implementation of the Fourth Industrial Revolution technologies on the continent of Africa, the serious lack of a reliable energy supply - enabling the use of new technologies - makes this declaration impossible. It is, therefore, just not viable to deploy the entire range of currently available Fourth Industrial Revolution technologies in South Africa. Neither will the government be able to make the shift in their services to the digital space as elsewhere in Africa.
South Africa, for example, already initiated a policy aimed at supporting renewable energy when the government hosted the 17th Conference of the Parties in Durban (COP17). Unfortunately, very little happened due to a lack of political will and certain political interests.
South Africa appears to be caught in a time warp due to a lack of the implementation of policies, and a power sector that continues to plan its future in the traditional way and focuses on appropriate energy pricing as the primary mechanism for driving its sustainable energy transition objectives.
It can, therefore, be argued that the use of technology - especially in government departments - is just not viable in a country with a hugely unreliable electricity supply. Digital equipment and computers need electricity to function.
South Africa and, especially state departments, will probably do better to revert back to paper systems. At least they will then be able to work a normal eight-hour day at a department such as Home Affairs. Only then will they be able to deliver on their promise of “declaring war on queues.” In the meantime the past 14 years and more will be known as the “Dark Ages” of the ANC government.
Professor Louis CH Fourie is an extraordinary Professor University of the Western Cape.
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