Read the case study below and answer ALL the questions that follow.

The Fourth Industrial Revolution and digitization will transform Africa into a global powerhouse

The Fourth Industrial Revolution $4$IR$)$ characterized by the fusion of the digital, biological, and physical worlds, as well as the growing utlization of new technologies such as artificial intelligence, cloud computing, robotics, $3$D printing, the Internet of Things, and advanced wireless technologies, among

$-$has ushered in a new era of economic disruption with uncertain socio$-$economic consequences for Africa. However, Africa has been left behind during the past industrial revolutions. Will this time be different? So far, it does not appear that Africa has yet claimed the $21$st century, as it still lags behind in several indicators essental for a successful digital revolution. Improvements in Africa's ICT sector have been largely driven by expanding mobile digital financial services: The region had nearly half of global mobile money accounts in $2018$ and will see the fastest growth in mobile money through $2025.$ But artificial intelligence $($Al$)$ and blockchain are also attracting interest in Africa, as they have the potential to successfully address social and economic challenges there. And there are so many other areas in which $41$R technology can be transformational.

The transformative potential of $4$IR in Africa is substantial

Encouraging economic growth and structural transformation: In recent years, the ICT sector in Africa has continued to grow, a trend that is likely to continue. Of late, moble technologies and services have generated $1\mathrm{.}7$ million direct jobs $($both formal and informal$),$ contributed to $$144$ billion of economic value $(8\mathrm{.}5$ percent of the GDP of sub$-$Saharan Africa$),$ and contibuted $ $15\mathrm{.}6$ billion to the public sector through taxation. Digitization has also resolved information asymmetry problems in the financial system and labour market, thus increasing efficiency, certainty, and security in an environment where information flow is critical for economic growth and job creation.

Falure to recognize and capitalize on $4$IR opportunities, conversely, will impose considerable risks on African stakeholders: Without attempts to move beyond existing models of innovation, entrepreneurship, and digital growth on the continent, African businesses risk falling further behind, exacerbating the global

"digital divide and lowering their global competiiveness. Going beyond the existing models requires discipline in governance to allow an endogenous innovative environment. At the same time, institutions must protect the market through consumer protection laws and regulations that encourage competition.

Fignting poverty and inequality: The spread of digital technologies can empower the poor with access to information, job opportunities, and services that improve their standard of living. Al$,$ the Internet of I hings $($lOT$),$ and blockchain can enhance opportunities for data gathering and analysis for more targeted and effective poverty reduction strategies. Already, we have witnessed the transformational power of formal financial services through mobile phones, such as M$-$Pesa, reaching the underserved, including women, who are important drivers for sustainable poverty eradication. These financial services allow households to save in secure instruments to enlarge their asset base and escape cycles of poverty.

Renventing labor, skills, and production: By $2030,$ Africa's potential workforce will be among the world's largest, and so$,$ paired with the needed infrastructure and skills for innovation and technology use, the $4$IR represents a massive opportunity for growth. Indeed, the $4$R is dramatically changing global systems of labour and production, requiring that job seekers cultivate the skills and capabilities necessary for adapting rapidly to the needs of African firms and automation more broadly. Already, Africa's working population is becoming better educated and prepared to seize the opportunities provided by the $4$IR: For example, the share of workers with at least a secondary education is set to increase from $36$ percent in $2010$ to $52$ percent in $2030.$

Inoroaoing financial corvicoo and invootmont:

Digitization has impacted economic growth through inclusive finance, enabling the unbanked to enter formality through retail electronic payments platforms and virtual savings and credit supply technological platforms. More broadly, digitization is enabling entrepreneurs and businesses to rethink business models that are more impactful, sustainable, and connected to other sectors of the economy. For example, with fintech, digitization has gone beyond the financial sector to alfect the real sector and households, transforming product designs and business models across market segments. Businesses are able to design products and trade online, and individuals are able to operate financial services and payments for shopping and investments. The goverment is also migrating to online platforms to conveniently provide public services.

Other $4$IR technologies are also having impact.

For example, in West Africa and Kenya, blockchain has enabled efficient verification of property records and transactions, and expanded access to credit in some previously informal sectors of the economy.

Since blockchains are immutable, fraud

$-$and thus the cost of risk$-$is reduced. There are also immense

opportunites for job creation in Africa. Given the informal sector is estimated to constitute $55$ percent of sub$-$Saharan Africa's GDP$12($with significant heterogeneity across countries$),$ these tools can be transformational.

Thelr consequences can cascade: Increased Tinancial Inclusion contributes to greater capital accumulation and investment, hence potential for employment creation.

Modemizing agriculture and agro$-$industries: Africa has yet to harness the full potential of its agricultural sector, and $4$IR technologies provide an opportunity to do so$.$ Farming alone accounts for $60$ percent of total employment in sub$-$Saharan Africa, and the food system is projected to add more jobs than the rest of the economy between $2010$ and $2025.$ Farm labour and income is especially important in sub$-$Saharan Anca, where on$-$farm activites represent almost $50$ percent of all rural income in countries like Ethiopia, Malawi, Nigera, and Tanzania. Information on competitive pricing, monitored crop information, disease prevention tips, and disaster mitigation support has the potential to transform the agricuiture sector to improve income, production, and demand throughout the continent. Furthermore, as incomes rise across the continent, growing consumer demand for food and beverages will coincide with business$-$to$-$ business growth in agro$-$processing. Ghana$-$based companies Farmerine and Agrocenta offer farmers mobile and web technology for agricultural advice, weather information, and financial tips. Zenvus, a Nigerian startup, measures and analyzes soil data to help farmers apply the right fertilizer and optimally irrigate farms. The

"Sparky Dryer," a dehydration machine invented by a Ugandan engineer, uses biofuel to dehydrate and reduce food waste. African entrepreneurs and startups are also using the Internet of Things to help farmers optimize productivity and reduce waste through data driven 'precision farming' techniques.

Improving health care and human capital: African countries face numerous health challenges exacerbated by climate change, limited physical infrastructure, and a lack of qualified professionals. $4$IR technology can help mitigate these threats and build sustainable health care systems, especially in fragile states.

Mobile technology has become a platform for improving medical data and service delivery: About $27,000$ public health workers in Uganda use a mobile system called mTrac lo report medicine stocks. The SMS for Life program, a public$-$private partnership, reduces medicine shortages in primary health care facilites by using mobile phones to track and manage stocks levels of malaria treatments and other essential drugs. Rwanda became the first country to incorporate drones into its health care system, usng autonomous air vehicles to deliver blood transfusions to remote regions.Technology has also improved disaster response: During the West African Ebola outbreak in $2014,$ WhatsApp became an easy method of dispersing information, checking symptoms, and communicating under quarantine.

Illness detection and pharmaceutical production have most immediately benefited from digitization. Al is being slowly implemented in Ethiopia to help medical professionals correctly diagnose cervical cancer and other abnormalities$\mathrm{.}20$ IBM Research Africa is also using Al to determine the optimal methods for eradicating malana in specific locations and using game theory and deep learning data analytics to diagnose pathological diseases and birth asphyxia. Strategies for overcoming key challenges faang Africa during the $4$IR$.$

Clearly, the $4$IR presents significant opportunities as well as challenges for Africa.

The key issue for policymakers is how to position their economies to benefit from the $4$IR while managing the challenges that it presents. Below are three strategies that leaders should priontize.

Fixing the labour$-$skills mismatch

Since creating jobs for the burgeoning youth population is a priority in most Aincan countries, many govemments are reluctant to support technologies that threaten existing jobs. Some of the current technologies tend to replace low$-$skilled workers$-$of which Africa has an abundance$-$with higher$-$skiled workers, constraining participation in the $4$ IR to economies with relevant skills. African governments must invest in education and reskilling programs to ensure that technology supplements, instead of replaces, labour. Enhancing agile governance for secure$,$ effective management of the $4$R and integration into global value chains. As innovation is at the heart of the $4$IR$,$ reinforcing state and institutional capacity to drive and support innovation and create an enabling business environment is essential for success.

A major regulatory challenge involves increasing cybersecurity. Most African countries lack a comprehensive legal framework and institutional capacity to address cybercrime. Instead, efforts to prevent cybercrime are appearing at the more local level or are implemented by private sector actors themselves. For example,

between $2015$ and $2016,$ there was a $73$ percent increase in Information

Security Management Systemcertified companies, from $129$ in $2015$ to $224$ in $2016,$ with the majority in South Africa, Nigeria, and Morocco. Adopting widely accepted and appropriate norms and regulations, such as these, is a first step to increasing cybersecurity.

At the same time, companies should invest in their employees to develop cybersecurity skills and integrate cyber risk protection in their decision$-$making process. The African Continental Free Trade Agreement offers a unique opportunity to enhance governance around the $4$IR$.$ With aligned policies and procedures, the continent can adapt to the rapid changes of the $4$IR and leverage it to accelerate participation in global value chains.

More broadly, the $4$IR can actually empower service delivery, through, for example, national identification and a new generation of biometrics that can centralize data for a variety of uses and users. Developing physical and digital infrastructure Access to advanced technology in Africa is constrained by infrastructure parameters such as lack of electricity and low teledensity, internet density, and broadband penetration.

As a result, mobile phone and internet use remains low.

Other technological bottlenecks include a lack of standardized application programming interfaces and common data languages for the increased integraton of largely self$-$sufficient systems as well as exposure to the dangers of cyberattacks. Accelerating the physical connectivity of fiber$-$optic networks as well as the interoperability of virtual platforms is critical not only for upgrading technology on the continent, but also for reaching and lowering unit costs for the underserved. More broadly, adequate infrastructure development will drive and sustain economic transformation in Africa. With lower transport and communication costs, countries with suitable agro$-$ecological conditions can produce high$-$value products. Closing the internet connectivity and access gap with advanced economies will enable more African countnes to enter service export markets.

Small$-$scale manufacturers in Africa may also become more competitive with access to digital platforms for research, sales, and distbution. To make the most of the $4$IR$,$ African governments and entrepreneurs need to recognize new niches for industry and leverage them to achieve sustainable, inclusive growth, and take decisive steps to close the gaps in digital skills, infrastructure, and research and development

Source: Ndung'u, N and Sign, L $(2021).$ The Fourth Industrial Revolution and digitization will transform Africa into a global powerhouse. In: Capturing the Fourth Industrial Revolution. A regional and national agenda. FORESIGHT AFRICA

Answer ALL questions in this section.

Question $1$

$(15$ Marks$)$

$1\mathrm{.}1$ Explain the meaning of the insight fusion of the digital, biological, and physical worlds according to your knowedge of digital transformation in business today.

$(3$ Marks$)$

$1\mathrm{.}2$ According to your knowledge of digital transformation in business today, explain what is meant by

"uncertain socio economic consequences for Africa".

$3$ marks$)$

$1\mathrm{.}3$ Clarify in detail the meaning of "Africa still lags behind in several indicators essential for a successful digital revolution".

$4$ Marks$)$

$1\mathrm{.}44$IR technology can be transformational in Africa and already there are indicators in mobile digital financial services Identify and explain why mobile digital financial services in Africa have potential of success. Provide TWO $(2)$ strong examples in your explanation.

$(5$ Marks$)$

Question $2$

$(20$ Marko$)$

Analyse the case study and discuss how important the transformative opportunity of $4$IR in Africa is$?$ Use examples from your country to substantiate your arguments.

Question $3$

$(20$ Marko$)$

Consider and argue how increasing financial services and investment in $4$IR has the transformatve potential in Africa? Use African country$-$based examples$)$ to support your answer.

Question $4$

$(20$ Marks$)$

Examine and write an argument where you provide evidence on how the $4$IR technologies are impacting

Africa today? $($Examples from your context to support your argument will ear you marks$)$

Question $5$

$(25$ Marks$)$

$4$IR technologies are argued as threatening existing jobs in Africa. What is your position on this argument as you draw insights from the case study?