THE 4th INDUSTRIAL REVOLUTION: Its impact on manufacturing and gender in Africa

Lazarus Sauti

This paper discusses the 4^th Industrial Revolution, its potential as well as risks for Africa. It argues that by swiftly moving labour into more productive sectors like manufacturing, Africa will be able to industrialise and improve livelihoods. The paper also provides a brief overview on the continent’s incapacity to industrialise before considering the impacts of the 4^th Industrial Revolution on the gender gap in Africa.

Defining the 4^th Industrial Revolution

The 4the Industrial Revolution is the fourth most important industrial era since the first industrial revolution of the 18^th Century. According to Cilliers (2018:15), the fourth Industrial Revolution “builds on the Digital Revolution, representing new ways in which technology becomes embedded within societies and even the human body.” It is generally assumed to be about the future impact of technologies such as robotics, additive manufacturing (3D printing), block chain software technology and big data. For Schwab (2016), the 4^th Industrial Revolution is characterised by an array of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries. He further stated that the resulting shifts and disruptions mean that people live in a time of great promise and great peril.

Fisher (2017) affirms that the 4^th Industrial Revolution captures the scheme of the convergence of novel technologies and their collective impact on our world. Artificial intelligence, for instance, can produce a medical diagnosis from an x-ray more rapidly than a radiologist and with more precision. Robots can manufacture cars quicker and with pinpoint precision than assembly line workers, and additive manufacturing (3D printing) will transform manufacturing business models in unthinkable ways.

Harvey (2017) adds that the 4^th Industrial Revolution’s most exciting dimension is its ability to address harmful externalities such as hidden environmental and social costs. Supporting this, Schwab (2017) argues that rapid technological advances in renewable energy, fuel efficiency and energy storage not only make investments in these fields increasingly profitable; they take the edge off climate change. The 4^th Industrial Revolution will deliver electricity because it no longer relies on centralised grid infrastructure, but on a smart grid which can distribute power efficiently even in remote areas. Beyond renewable energy, Harvey (2017) believes the Internet of Things and blockchain software technology cast a vision for financial inclusion that has long been elusive in most African countries.

However, no revolution comes without risks. One of the risks of the 4^th Industrial Revolution is joblessness. A large number of people employed in the manufacturing sector will lose their jobs, and the social effects of joblessness are distressing. Furthermore, the 4^th Industrial Revolution threatens to amplify current inequalities, both within and between African countries. Unequal societies have lower levels of life expectancy than their more equal counterparts (Harvey, 2017).           

4IR and manufacturing in Africa

The McKinsey Global Institute Report (2012) asserts that manufacturing is not only the most dynamic sector, but the tonic to sustainable socio-economic development. It proffers unique opportunities for capital accumulation and contributes excessively to exports, innovation and growth (Manyika, 2012). According to Cilliers (2018), the manufacturing sector also encourages growth in high-end services such as finance and logistics, which in turn are crucial for continued improvements in productivity.

In Africa, just like most developing regions of the world, manufacturing remains essential as a conduit from subsistence agriculture to rising incomes and living standards. Buoyed by the power of manufacturing, most- if not all – developed nations have embraced the 4^th Industrial Revolution to transform their economies. In East, Southeast and South Asia, for instance, the growth in manufacturing alleviated poverty and improved livelihoods. Importantly, Asia and other developed nations are growing their prosperous through the structural revolution of their economies that is by moving capital, labour in addition to technology from lower to higher-productivity sectors.

Unlike in Asia, an agricultural sector characterised by low productivity dominates African economies. Manufacturing also accounts for 14 percent in low-income countries’ Gross Domestic Product. Africa can effectively push its industrialisation agenda as fast as Asia if the agricultural potential is unlocked, a fact supported by institutions such as the African Union, the African Development Bank and the World Bank. Cilliers (2018) affixes that industrialisation determines agricultural efficiency plus expansion and even the improvement of high-value services. He further avowed that the knowledge spill over from manufacturing eventually makes it profitable to invest in more productive agricultural machinery and systems. “Growth in manufacturing increases wages and productivity in the agricultural sector (Cilliers, 2018:5).

For Studwell (2013), elements of agriculture can ultimately be part of the ‘high-tech’ sector when combined with digital technologies. Thus, African farmers can effectively benefit from the potential of beneficiation of raw materials and for this to happen, African countries need to develop local industries that have the capacity to add value to raw materials. Harvey (2017) also says African governments must be proactive in embracing new technologies. They need to employ systems thinking, operating in concert rather than in silos. Rapid access to energy should also be a key policy priority.

At the moment, African countries are failing to embrace new technologies and promote widespread innovation in manufacturing and other sectors. According to Cilliers (2018), in no African country does Information and Communication Technology contribute more than 5 percent of Gross Domestic Product. In Nigeria, Africa’s largest economy, agriculture accounts for 21 percent of added value to GDP, energy for 11 percent, manufacturing for 11 percent, services for 52 percent and Information Communication Technology for 3 percent. The Africa Competitiveness Report (2017) also notes that even the most tech-savvy countries on the continent like South Africa, Mauritius, Botswana, Namibia and Kenya are still far behind the frontier in the adoption of Information and Communication Technologies and this is hampering the capability of Africa to clinch the 4^th Industrial Revolution. The report declared that only 1.4 percent of Africans has fixed broadband connection. Because of this, data package subscriptions are relatively expensive in most countries. Lack of high speed connectivity and highly-priced data packages are decisive blocks for building up models of production for the 4^th Industrial Revolution, which are built on the infrastructure of the digital revolution (Schwab, 2016).

Furthermore, the Africa Competitiveness Report (2017) stressed that there is a mismatch between skills and jobs in most African countries. This disparity is crippling the continent’s bid of accelerating economic transformation into higher rates of productivity.

Africa’s incapacity to industrialise

Africa is endowed with natural and human resources, but Newman et al (2016) believe that its incapacity to industrialise and adopt new technologies is due to lack of basic infrastructure, lack of human capital, inappropriate policies and institutional reforms, little or no attention to special economic zones, as well as little or no effort at all to boost non-traditional exports. Cilliers (2016) adds that another reason is that African governments created institutions that only campaigned for foreign direct investment without thinking about real assurance and proper execution support. This, according to Newman et al (2016), explains why these efforts achieve very little.

African states like Mozambique, Tanzania, Kenya, Ghana, Nigeria and Senegal embarked on investment reforms to improve institutional and regulatory environments in which firms operate, but failed to consider vigorous endeavours to advance the competitiveness of domestic industries. This lack of a concerted push to advance the competitiveness of domestic industries coalesced with gritty efforts to shield domestic industry made sure African nations did not grow the more productive sectors of their economies.

On the contrary, global developments may now work to Africa’s advantage. These, according to Baldwin (2016), consist of the impact of the digitisation of production along with the trend towards locating manufacturing closer to markets. Baldwin also argues that knowledge flows consisting of data, information searches, communications, transactions and video dictate the new globalisation. The scholar argues that global flows of knowledge contribute to economic growth and there appears to be potential for lagging countries to catch up in this dimension through investment in information and communication technology.

The 4^th Industrial Revolution: Its impact on gender in Africa?

Without doubt, the 4^th Industrial Revolution is reshaping almost every aspect of human life. It is changing relationships and identities. But the most important question is, “How will the 4^th Industrial Revolution affect roles women play in the economy, politics and society?” Another question is, “Will this revolution closes or widens inequality, particularly for women?”

Clearly, the 4^th Industrial Revolution will change women’s roles in the economy, politic and society. Gender activist, Daphne Jena says industries like manufacturing and construction – businesses that are mostly male-dominated – are likely to be the most affected by automation. She also says industries resistant to automation such as nursing, medicine and psychology will become more competitive. Jena adds that this is a clear indication that women will shape and influence the future of work on the African continent. Cilliers (2018) affixes that the tools women need to shape and influence the future of work on the continent, as well as steer changes are there as women have more degrees, more post-graduate degrees, more PhDs, more law degrees than men.

The society benefits immensely when organisations have a diverse workforce, where women are given equal opportunities and paid a wage similar to that paid to men. A study conducted at the University of Michigan proves that if organisations have a mixed group of men and women working out a complex business crisis, that assembly will always arise with a superior resolution than a group of men, even if the men are individually more qualified than members of the mixed group on average. Global studies also show that corporations that employ more senior women outperform their competitors in most important profitability metric.

Jena argues that corporations in Africa and other regions are losing gifted women in their 30s when they bear children and face the “kids against career” choice. “Many women choose kids over work,” she said. However, the 4^th Industrial Revolution could work in favour of these women. As domestic work is programmed, it may lessen part of the twin saddle of being both a breadwinner and a caregiver.

According to the World Economic Forum Global Risks Report (2017), most jobs created between now and 2020 will have technology component and it is of paramount importance that women understand the skills they will need to excel in them. This is an excellent prospect for African women to create new career paths as demand will also grow for jobs that machines cannot perform.      

Gender activists believe there is the continued risk that jobs that are currently dominated by women will remain undervalued, even if they are not impacted by the 4^th Industrial Revolution. That, without doubt, would further widen the gender gap and increase overall inequality, making it difficult for women in most, if not all, African countries to leverage their talents in the workforce of the future. Solving this problem is very easy. African governments simply need to promote a culture of science, technology, engineering and maths education for girls. Civil society groups, researchers, development partners, feminist economists, feminist think tanks, feminist policy shapers and practitioners should also join hands with governments in encouraging girls and women to make use of technology and entrepreneurship to create socio-economic opportunities that guarantee women’s economic autonomy.

Conclusion

As evidenced above, the 4^th Industrial Revolution builds on the digital revolution, representing new ways in which technology becomes embedded within societies and even the human body. This revolution impacts manufacturing and gender equality. It offers excellent opportunities, as well as well as risks. To overcome the risks, and ensure Africa and the general citizenry fully benefitted from the opportunities presented by this revolution, it is important to cultivate a culture of science, technology, engineering and maths for girls. Lifelong learning will be important to sustain the ongoing technological changes which will impact the workforce of the 4^th revolution.

References

Baldwin, R. (2016). The Great Convergence: Information Technology and the New Globalisation. Harvard University Press.

Cilliers, J. (2016). The Future of Democracy in Africa, 20 October 2016, Institute for Security Studies. https://issafrica.org/research/papers/the-future-ofdemocracy-in-africa.

Cilliers, J. (2018). Made in Africa: Manufacturing and the fourth industrial revolution. Africa in the world report 8, April 2018. Institute for Security Studies.

Fisher, A. (2017). 4IR has the potential to drive Africa forwards. http://cocreatesa.nl/changemakers/4ir-has-the-potential-to-drive-africa-forward/

McKinsey Global Institute (2012). Manufacturing the future: The next era of global growth and innovation, November 2012. https://www.mckinsey.com/business-functions/operations/our-insights/the-future-ofmanufacturing

Manyika, J. et al. (2012). Manufacturing the future: The next era of global growth and innovation. McKinsey Global Institute, November 2012. www.mckinsey.com/~/media/McKinsey/Business%20Functions/Operations/Our%20Insights/The%20future%20of%20manufacturing/MGI_%20Manufacturing_Full%20report_Nov%202012.ashx.

Newman, C. et al. (2016). The Pursuit of Industry – Policies and Outcomes, in Carol Newman et al (eds),  Manufacturing Transformation – Comparative Studies of Industrial Development in Africa and Emerging Asia, Oxford University Press, Chapter 13.

Schwab, K. (2017). The Fourth Industrial Revolution. New York: Crown Business.

Studwell, J. (2013). How Asia Works: Success and Failure in the World’s Most Dynamic Region. Grove Press.