BRICS and Africa’s Part in the Fourth Industrial Revolution
China CPI & PPI, July 2017–July 2018
China’s Official PMI July 2015–July 2018
China’s Monthly Retail Sales, $tln, % y-o-y, June 2015 - June 2018
China’s Monthly Imports, $bln, % y-o-y, July 2015 - June 2018
China’s Monthly Exports, $bln, % y-o-y, July 2015 - June 2018
Source: National Bureau of Statistics of China
Is Africa ready to participate in and take advantage of the Fourth Industrial Revolution? July 27 marked the conclusion of the 10th annual BRICS Summit in Johannesburg. The summit declaration outlined as the group’s new key initiative to tackle challenges and maximize benefits brought by developments in technologies such as artificial intelligence and automation. The new industrial revolution was a key point of discussion during the BRICS Summit. The BRICS “PartNIR,” which stands for Partnership in the New Industrial Revolution, is expected to create and guide policymaking with regards to harnessing new changes in technology, dubbed the Fourth Industrial Revolution.
The BRICS members have formulated a specific plan to optimize coming changes in automation, digitalization and artificial intelligence, which have also been advanced in other developed economies such as the United States, France and Japan, all of whom have now come out with their own nationwide programs intended to address the Fourth Industrial Revolution. Within the PartNIR framework, BRICS aims to develop a coherent and synergetic set of policies concerning education, skills development, employment and investment for the new technologies.
The motivation to create a strategy related to the Fourth Industrial Revolution among BRICS countries is timely, especially for major manufacturing exporters such as China. The strategies enable firms to become more flexible in meeting changing customer demands for high-value added products. A high level of experimentation and efficient production processes, also facilitates new innovation, by allowing faster creation of new prototypes and bringing them to the market. Furthermore, greater use of innovative strategies can dramatically increase labor productivity. These new innovative strategies will also maximize benefits and facilitate technological growth in Africa, and play a vital role in the industrial sector throughout the continent.
If successful, the Fourth Industrial Revolution’s skill upgrading, educational expansion and technological upgrades could be seen across the bloc, affecting a considerable portion of the world’s labor force and having a profound impact on BRICS productivity, and in turn the current balance of economic power. The drive among BRICS countries to champion cooperation among developing countries acts as an important forerunner for African countries to craft strategies to capitalize on the Fourth Industrial Revolution.
1/Morocco July: A deal between Chinese auto part giant CITIC Dicastal Co. Ltd. and Morocco has outlined the plans for the construction of two auto wheel plants in the country with a cost estimated at $407.5 million. The plants are planned to be operational by the end of next year, and produce 6 million wheels per year.
2/Ethiopia July: A new 458-km, 230-kilovolt electricity transmission line was constructed between Alamata in north Ethiopia and Legetafo in the central part of the country. This new line was built jointly by Chinese firms Sichuan Electric Power Transmission and Transformation Construction Co. Ltd., as well as Jiangsu Etern Co. Ltd. The $20 million project is expected to be a massive boost for the Ethiopian consumer market to receive reliable power supply in the country.
3/Kenya June: China National Aero-Technology International Engineering Corp. has won the tender to construct the first tarmac road extending to South Sudan from north Kenya’s Rift Region. The $20 million project aims to provide farmers better access to market.
4/Uganda June: China and Uganda signed an agreement whereby China shall finance the modernization of Uganda’s customs department. The $15 million modernization project is set to aid the country’s revenue collection ability by improving methods of collection, trade facilitation and border control.
5/Zimbabwe June: Zimbabwe has commissioned the construction of a $1.5 billion Chinese-funded Hwange Power Station expansion project. The project is to be carried out by China’s SINOHYDRO Corp. Ltd., and is set to be completed in 42 months. The aim of the plant is to cover the 400 mw deficit in Zimbabwe.