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Hydrogen: A catalyst to fuel Africa’s green industrial revolution

By Tiago Marques, Head of Content of Global African Hydrogen Summit and Vice President of Production at the Sustainable Energy Council What is hydrogen and how is it produced?  Hydrogen is a clean alternative to methane, also known as natural gas. It’s the most abundant chemical element, estimated to contribute 75% of the mass of the universe. Hydrogen can be made directly from fossil fuels or biomass, or it can be produced by passing electricity through water, breaking the water into its constituent components of hydrogen and oxygen.  According to the National Renewable Energy Laboratory from the US Department of Energy, hydrogen has very high energy for its weight, but very low energy for its volume, so new technology is needed to store and transport it. And fuel cell technology is still in early development, needing improvements in efficiency and durability. The emerging clean hydrogen market The International Energy Agency (IEA) has stated the key pillars of decarbonising the global energy system are: In addition to the projected volume of emissions reduction hydrogen is expected to facilitate, hydrogen is positioned to play a significant role in the energy transition due to emerging capabilities to produce clean hydrogen and hydrogen-based fuels as well as increasing hydrogen demand generation. According to McKinsey research, total hydrogen demand has the potential to reach up to 660 million tons by 2050, abating more than 20% of global emissions. Realising this opportunity will require all relevant stakeholders to come together to develop clean hydrogen value chains – often across geographies. Those positioned to take action in these areas will be uniquely advantaged to create new sources of value and play a leading role in future global energy markets. Clean hydrogen is expected to play a critical role in decarbonising hard-to-abate sectors, often as a complement to other technologies, including renewable power and biofuels. Hydrogen has the potential to decarbonise heavy industries including steel, petrochemicals, fertilisers, long-haul transport and more as well as to support flexible power generation, among other applications. While momentum is strong, more needs to be done to be on track to achieve net zero ambitions by 2050. The increasingly supportive policy and funding environment – including quantified 2030 production capacity targets for many countries – means about two-thirds of announced projects are projecting start-up by the end of the decade. The momentum created by the US Inflation Reduction Act has helped boost energy-related sectors globally, including low carbon hydrogen. For investors, comparing the effect of hydrogen-related policy and legislation on costs and pricing will be a key element of making informed, data-driven investment decisions. However, the emerging hydrogen economy faces significant challenges in ramping up, including: The opportunity for Africa For many African countries, the question is not about reducing their carbon footprint but rather to sustainably harness their existing resources to meet the growing demand for energy that will advance economic development, map a sustainable path to a net zero future and eliminate energy poverty across the continent. To this end, some African countries are setting their sights on clean hydrogen.  In the global drive to develop and commercialise clean hydrogen, Africa is on an equal footing with developed economies. Governments around the world are promoting projects for domestic and export markets of clean hydrogen, with billions of dollars expected to be invested over the next few years. To capture the opportunity, supportive and facilitating policy will be needed to incentivise investment as well as: Given the advantage of abundant wind and solar resources, vast underpopulated landmasses and strategic coast lines, the continent could be highly competitive in supplying clean hydrogen for local and global consumption. A McKinsey Achieved Commitments scenario projects global hydrogen demand could grow sevenfold by 2050, accompanied by falling hydrogen production and renewable capacity increases. Africa has a significant opportunity to export the clean hydrogen needed to balance global demand with available supply. Collectively and through collaboration, hydrogen-producing African countries have the potential to complement African hydrogen exports of up to 40 megatons by 2050 with self- supply its full domestic demand potential of 10 to 18 megatons of hydrogen. To enable these shifts, McKinsey projects $2.9-trillion of cumulative capital expenditure would be required between 2022 and 2050, most of which would need to be dedicated to green energy sources. In 2022, annual investments in energy amounted to $70-billion, of which nearly 60% were derived from oil and gas activities. By 2050, the annual investment required is expected to more than double to $160-billion, with the focus of investment likely shifting to an expected 43% of capital expenditure spent on hydrogen, 38% on renewables, and 17 percent on power transmission, distribution and mini-grids. The African clean hydrogen potential represents a major opportunity for growth, employment and innovation. Stakeholders across the public and private sectors, both domestically and internationally, will have a critical role to play in moving Africa and the countries across it toward a sustainable energy future. The opportunity for Namibia Hydrogen as a catalyst to propel green industrialisation across the African continent is emerging as a multifaceted solution that aligns to domestic, regional, and global agendas. By capitalising on its renewable energy potential and strategic geographic location, Namibia can spearhead the development of a green industrial ecosystem that not only supports its own economic objectives but also contributes to broader regional and global sustainability goals. If executed diligently, it represents a pathway to overcome its structural economic constraints while simultaneously fostering high-skill job creation, increased productivity, market expansion, and foreign direct investment. Central strategies include promoting export development, enhancing efficient production, ensuring external debt sustainability, and developing an integrated industrial strategy. Namibia’s own Green Industrialisation Blueprint also highlights the importance of modernising agriculture, empowering women and disadvantaged groups, and fostering a highly skilled and productive labour force. To avoid the potential pitfalls identified by its founding fathers and enshrined in Vision 2030, Namibia must reduce its reliance on the primary sector and adopt policies that promote economic diversification and resilience.

Bridging the gap: How AI is transforming financial planning in South Africa

By Jessie Taylor The financial landscape in South Africa is undergoing a profound transformation driven by the integration of artificial intelligence (AI) into financial planning. From personalised recommendations to risk management, AI technologies are reshaping how individuals, businesses, and public institutions manage their finances. With applications ranging from generative AI-powered advisory to predictive analytics, the rise of AI signals a new era of efficiency, inclusivity, and innovation. Personalisation at scale One of AI’s most significant contributions to financial planning is the ability to provide personalised advice at scale. Traditional financial planning often relied on one-size-fits-all solutions, but AI-powered tools now offer tailored insights based on an individual’s unique financial profile. To craft customised plans, these tools analyse vast datasets, including spending habits, investment history, and income patterns. For instance, generative AI can simulate various financial scenarios, offering suggestions for optimising returns while managing risks. This technology not only improves customer experiences but also deepens engagement by addressing specific financial goals. By understanding each user’s unique financial circumstances, AI helps ensure their plans are both realistic and achievable. Financial decisions can be overwhelming, especially when considering complex investments or retirement planning. AI simplifies this process by providing actionable insights and recommendations. Algorithms can predict market trends, assess risk levels, and even suggest optimal times to make financial moves. Platforms like robo-advisors employ these capabilities to make investment management accessible and affordable for the average person. Predictive analytics have become a cornerstone of financial planning. They allow individuals and organisations to anticipate future financial challenges and opportunities, making long-term planning more effective. AI fosters confidence in financial decision-making by empowering users with accurate and timely data. AI has the potential to democratise financial planning, making services accessible to previously underserved communities. In South Africa, where economic disparities remain a challenge, AI tools are bridging the gap. Mobile apps and digital platforms powered by AI provide affordable and user-friendly financial advice, enabling more people to take control of their financial futures. These tools are particularly beneficial in improving financial literacy. By delivering insights in simple, relatable terms, AI-powered platforms empower users to make informed decisions, regardless of their financial expertise. This accessibility helps level the playing field, fostering economic inclusion across the country. A new frontier of financial planning AI has revolutionised the customer experience in financial services. Chatbots and virtual assistants powered by natural language processing are commonplace, providing instant support and guidance. These tools enhance efficiency, allowing users to resolve queries or access information without long wait times. Generative AI also enables dynamic interactions that feel more personalised and human-like. This technology reshapes how financial institutions engage with their clients, improving satisfaction and loyalty. For public sector leaders, adopting such tools can enhance service delivery and build stronger relationships with stakeholders. Retirement planning is another area where AI is making a significant impact. Traditional methods of retirement saving often fail to account for dynamic factors such as changing market conditions, inflation, and life expectancy. AI-driven platforms address these gaps by continuously analysing data and adjusting recommendations. In addition, AI also plays a critical role in identifying and mitigating risks. In financial planning, risk management is paramount, whether it involves securing assets or ensuring compliance with regulations. AI systems excel at analysing vast amounts of data to detect anomalies and flag potential risks or fraudulent activities in real time. AI is transforming financial planning in South Africa, offering unprecedented opportunities for efficiency, personalisation, and inclusion. Emerging technologies such as machine learning, block chain integration, and quantum computing promise to further enhance the capabilities of financial tools. As these innovations become mainstream, the financial planning process will become even more seamless, efficient, and personalised. By leveraging AI-powered tools, individuals and institutions alike can optimise their financial strategies, mitigate risks, and achieve long-term goals. However, realising the full potential of AI requires a commitment to ethical practices, regulatory oversight, and ongoing innovation. As AI continues to evolve, its impact on financial planning will undoubtedly grow, shaping a more dynamic and inclusive financial ecosystem for all South Africans. Sources: Tech Financials  |  FA News  |  Wonga  |  Forvis Mazars

The financial resilience imperative

By Chipo Mushwana, Executive of Emerging Innovation and Payments at Nedbank In today’s rapidly evolving landscape, businesses and individuals alike are confronted with persistent challenges and continuous change. The global environment is characterised by economic volatility, geopolitical instability, technological disruptions, and complex social dynamics. This intricate environment demands strong financial readiness to manage unexpected events and the capacity for quick adaptation. Consequently, the criticality of financial resilience is paramount for ensuring stability and success in the face of such unpredictability. Financial resilience has thus transcended beyond being a mere safeguard; it has become an essential strategy for ensuring long-term financial health, prosperity, and growth. For individuals, this resilience equates to the ability to absorb economic impacts, such as escalating living costs, unforeseen bills, or a sudden loss of income. For enterprises, it involves the capacity to adjust to evolving market dynamics, effectively navigate risks, and bounce back quickly from setbacks. The cultivation of financial resilience yields numerous benefits. For individuals, it affords a sense of security, enhanced financial autonomy, and the capacity to remain steadfast in achieving long-term ambitions despite any temporary obstacles. For organisations, resilience engenders operational stability, bolsters competitive edge, and empowers them to seize opportunities, even amid economic adversity. Moreover, a financially robust society is better positioned to withstand economic turbulence, mitigating the severity of financial downturns and fostering sustainable economic expansion. In the context of South Africa, the establishment of a resilient society is a critical foundation that can stimulate innovation and cultivate a more predictable climate for economic progress and attractiveness to global investors. Central to fostering financial resilience is the essential social contract between financial institutions and their clientele. Banks are instrumental in equipping individuals and enterprises to navigate economic fluctuations. This is the expectation that consumers and corporate clients have of their financial institutions—to serve as guardians of their fiscal wellbeing and reliable allies in their pursuit of financial stability and resilience. This trust-based expectation affords banks both an obligation and an opportunity to develop products and services that reduce the burden of financial decision-making for their customers. The most obvious manifestation of this social contract is in the form of personalised solutions that help customers transact, save, reduce debt, and manage their finances more effectively. However, it’s a responsibility that extends beyond products. It requires a commitment to financial education, transparent communication, and the development of tools that empower customers to make informed financial decisions. By creating this collaborative relationship, banks can, and should, play a transformative role in building a more resilient financial ecosystem that benefits everyone. Innovation’s crucial role in financial resilience The pivotal function of innovation and technology in cultivating financial resilience is indisputable. Fintech solutions have established themselves as robust platforms, offering more accessible and secure financial services that enhance stability and adaptability for individuals and enterprises alike. Nedbank, a vanguard of resilience-centric digital innovation, has consistently acknowledged the significance of transcending mere technological novelty. Our pioneering payment solutions, such as the Nedbank Tap on Phone POS – the inaugural soft POS system in Africa – are instrumental in equipping SMEs with the tools necessary for sustainable growth and resilience. Similarly, Nedbank’s introduction of WhatsApp payments, another African first, bolstered resilience by streamlining the payment process for users. Our recent innovation, the AVO Super App, continues this trajectory by enabling merchants to tap into new markets of unprecedented scale and reach, further demonstrating how technology can fortify resilience and open up new possibilities for growth. Financial resilience is a ‘team sport’ While banks and other financial institutions have a key part to play in helping individuals and businesses become financially resilient, they can’t do it on their own. Resilience is a shared responsibility that requires commitment and dedication from all parties. There are several essential steps that any person or business should be taking to begin their resilience journey: At the very least, for individuals, these include the following: For businesses, financial resilience rests on the following pillars: The journey to financial resilience presents challenges, yet through dedicated effort, strategic partnerships, and the adoption of effective tools and perspectives, it is a critical and attainable objective for all South African individuals and enterprises to prosper in a dynamic global landscape. Chipo Mushwana is Executive of Emerging Innovation and Payments at Nedbank

Moving towards a green transition: Lessons in mobility from Denmark

By Nicholas Fordyce The World’s climate is changing. Climate variability has always been a thing; but anthropogenic climate change has not. Rapid industrialisation has led to significant changes in our atmosphere’s chemistry and the resulting climate changes are occurring at a rate and severity that risks exceeding the adaptive capabilities of the ecosystems and species which we are reliant upon for our own prosperity and, indeed more ominously, our survival. Alarmingly, climate change is just one component of the Triple Planetary Crisis which faces us. Widespread pollution, on land, in our oceans and rivers, and in the air we breathe is another, and a steep decline in biodiversity is the other. None of this should really be news to anyone. Neither should the fact that as South Africans, we’re in line to be on the more severe receiving end of the aforementioned climate changes. According to the IPCC, we already frequently experience droughts, floods, and other extreme weather events, with evidence that the frequency and intensity of such events will increase yet more! In searching for solutions to the triple planetary crisis, most agree that we must embrace a green transition. Whilst there are a number of different definitions for what this means, a few basic tenants hold true. A green transition necessarily implies a development pathway towards carbon neutrality that is also socially just (also referred to as a Just Transition); ensuring no one is left behind, whilst aiming to redesign the critical components of any economy including energy production, water and sanitation infrastructure, transport, food production and waste minimisation and management such that each function in cleaner, more sustainable ways.In South Africa, the just transition imperative has now been entrenched and embraced by most major stakeholder groups. There is broad consensus among social partners that climate change will impact people and the economy, and that a just transition to a sustainable, cleaner, and more inclusive economy is required. The Presidential Climate Commission (PCC) highlights that “a just transition aims to achieve a quality life for all South Africans, in the context of increasing the ability to adapt to the adverse impacts of climate, fostering climate resilience, and reaching net-zero greenhouse gas emissions by 2050, in line with best available science”. It is therefore incumbent upon us to take lessons where they are available. Lessons from Denmark One of the aspects of travel that has always excited me is the inevitable requirement to use different modes of transport to get around. I’m probably a relatively extreme example of this; fuelled by my interest in nature, and birds in particular, I’ve been extremely fortunate and intentional in seeking out pretty exotic and remote locations in search of unusual wildlife, and this has inevitably triggered the need to use unusual modes of transport. Yet even for the less intrepid traveler, varied transport requirements should be anticipated. Copenhagen wouldn’t fall into a list of cities I’d classify as particularly intrepid or exotic, but it does still fit the aforementioned travel pattern. During a three-week visit to the city in September, as part of a study tour to learn about what Denmark is doing to adapt to, and mitigate against, climate changes, mobility was a feature that stood out. Copenhagen has to be one of the easiest cities in the world to move around in. It is not the biggest city, but more importantly, public transport is a breeze to use, and there are a variety of ways to get around. During my three weeks in Copenhagen, I walked a lot (according to my Strava app, over 120 kilometres). As a pedestrian, it’s no exaggeration to say that the biggest risk to one’s safety isn’t cars, buses or even trains; it is the hordes of cyclists that make use of the generous and numerous cycle lanes that cut through the city!  And so a key lesson from my Danish autumn emerges; ease of mobility; unlocking a city. EASE OF MOBILITY Copenhagen’s urban design has intentionally prioritised cyclists and pedestrians. Most major roadways include pedestrian and cycling lanes, often wider than those allocated to cars and buses, and the latter are required to give way to the former, without exception.  There is also a network of highly efficient, relatively affordable, electrified rail alternatives. I used the metro a lot; Copenhagen’s (mostly) underground rapid local train service. The metro runs 24/7 and, remarkably, trains can be caught at intervals usually 2 – 4 minutes apart. The convenience is extraordinary. Moving around in a new city can be intimidating; but the metro in Copenhagen consists of four different lines and it takes surprisingly little time to figure out which one you need to be on, and in which direction you need to be heading. Then it’s just a case of hopping on and off as required.  The S-trains, another inner-city train offering, are described as a hybrid urban-suburban train system. They run less frequently than the metro, with trains every 7-10 minutes, but, critically, link slightly further suburban areas with the city centre. In addition to the trains; buses are also very common throughout the city. One particular bus route, the 5C bus, actually runs entirely on biogas that is produced via the treatment of municipal organic waste; making it a carbon neutral bus offering. These buses emit 72% less NOx and 33% fewer particles and they also make less noise. They resemble the bus rapid transit (BRT) system; an international concept known from European cities like Paris and Barcelona Collectively, public transport infrastructure is comprehensive, and provides a plethora of clean, rapid and affordable ways to get around. It’s little wonder that most residents make use of public transport, despite the relatively high standard of living experienced by most Danish folk. For those that do opt for private transport, there are challenges and an increasing number of reasons not to do so. Commuters using their own transport are discouraged from using greenhouse gas emitting internal combustion engine (ICE) vehicles within the city. This has

The 55th Annual World Economic Forum (WEF) Meeting, 20 – 24 January 2025 in Davos-Klosters

By Professor Bonang Mohale Davos in Switzerland is the highest town in Europe at 1 560m situated in the mountains and as result, a very popular skiing destination precisely due to its cold weather, ice and snow at this time of the year! Yet ever since the World Economic Forum (WEF) brought its Annual Meeting to the alpine venue, the name resonates with the flagship event. The 20 – 24 January 2025 is the 55th Annual Meeting of the World Economic Forum (WEF) that has brought together nearly 3 000 leaders from over 130 countries and 350 governmental leaders, including 60 heads of states and governments, from all key regions; over 1 600 business leaders, including over 900 of the world’s top CEOs and Chairs from the WEF Members and Partners – over 120 of which are Global Innovators, Tech Pioneers and Unicorns who are transforming industries; civil society; the foremost scientific and cultural thinkers.  Today, the programme contains more than 300 sessions – 200 of which are livestreamed to a global audience that aim to accelerate progress and tackle global challenges. The agenda changes every year to address the world’s most pressing issues – from pandemic preparedness and reskilling, to the state of the global economy and the energy transition. The WEF releases the Global Risks Report ahead of the Annual Meeting each January, to identify and analyse the upcoming near- and longer term critical global risks that underpin discussions.  The Forum continues this work year round with a range of initiatives via its Centres. Geo-economic fragmentation, geopolitical polarisation and divisions over values continue to impact countries and communities across the world. At the same time, exponential innovation and deployment around whole sets of inter-connected technologies – from Artificial Intelligence (AI) and quantum to energy tech, biotech and health tech – offer an unprecedented opportunity to increase productivity and hence standards of living. Reviving and reimagining growth is critical to building stronger and more resilient economies.  Given these powerful forces at play, three questions are guiding the conversations, namely how can we avoid an age of Fragmentation and instead work together on a can-do, people-centred agenda for an Intelligent Age; how can we reinvent the muscle of collaborative innovation to get out of the current low-growth, high-debt world economy and address common challenges from climate change to the ethical use of AI? To respond to this dynamic context, the WEF has convened leaders under the theme ‘Collaboration for the Intelligent Age’. Building on the core roles of the WEF as the International Organisation for Public Private Cooperation, it serves as a trusted global platform for dialogue and cooperation; brings together a diverse community of stakeholders; seeks to connect the dots in an era of complexity; firmly future oriented both in terms of insights and solutions and leadership in complexity to look at the necessary toolkit to navigate this fast-evolving environment. The programme is oriented around five distinct but highly interconnected thematic priorities, viz. reimagining growth; industries in the intelligent age; investment in people; safeguarding the planet and rebuilding trust. It is accessible to the wider public through livestreaming of the public sessions, complemented by the presence of media leaders and reporting press and through local engagement at the Open Forum in Davos. It brings together these leaders to set the year’s agenda for how leaders of social partners can make the world a better place for all. Its relevance as a global gathering sits within and beyond the official programme. The importance of dialogue – often happening in private conversations – reveals an ever important mission to convene leaders when ‘threats to world stability are multiplying’.  Following its founding on 24 January 1971 by Professor Klaus Schwab, the European Management Symposium (EMS), as it was then known, held its first meeting in Cologny, Canton of Geneva, Switzerland. The WEF tries to embody ‘the spirit of Davos’, which is an attitude of openness and cooperation that is core to the mission of the Forum. The ‘Davos Manifesto’, created in 1973 and renewed in 2020, lays out the principles of stakeholder capitalism or a system of shared goals for businesses. Inaugural participants discussed Professor Schwab’s ‘stakeholder theory’, his vision that businesses should serve all stakeholders, rather than just shareholders, including employees, suppliers and the wider community. Today, ‘stakeholder capitalism’ is a guiding principle of the Forum.  In 1973, the Annual Meeting endorsed the ‘Davos Manifesto’s “Code of Ethics for Business Leaders” which was updated in 2020 to set out the purpose of business in the Fourth Industrial Revolution – itself a concept coined by Professor Schwab in his 2016 book. Politicians were first invited to take part in the WEF, Davos in 1974 and in 1987 the EMS became the World Economic Forum, with a broadened aim to provide a platform to address the pressing issues of the day via public-private cooperation. The WEF recognises the severity of the climate crisis and does its best to lead by example and boost sustainability at Davos. Since 2017, all Davos-related carbon (CO2) emissions have been calculated and offset through environmental projects in Switzerland and abroad. It also ensures that energy consumption at Davos is limited, takes steps to reduce waste and that only renewable electricity is used for the event. These efforts include the use of repurposed event materials, the removal of single-use plastics and collaborations with local associations to distribute non-used furniture and food leftovers. Transportation remains the primary source of CO2 emissions at Davos. Therefore, it encourages attendees to travel in the most sustainable manner and offers a 100% discount for all participants in Europe who travel by train. Davos also serves as an opportunity to showcase climate research and sound the alarm on the many pressing climate-related issues. At Davos 2019, David Attenborough delivered a powerful address on the ‘new geological age’ and in 2023 the USA Climate Envoy, John Kerry called for the ‘biggest transformation, economically, since the industrial revolution.’ Aligning with the Forum’s Global Gender Gap Report,

Top technology trends that will continue to dominate 2025

By Dr Mmaki Jantjies Let’s take a look at the key technology areas that will continue to dominate the tech sector in 2025. Anticipating these shifts is not only crucial for the companies seeking to remain competitive, but for the policymakers, educators and individuals aiming to adapt to the evolving demands of the future.  Immersive technologies  While multinational technology companies such as Apple, Meta and Microsoft continue to invest in R&D exploring various spatial technologies, we will continue to see an improvement in technologies seeking to combine the physical and virtual worlds. For example, Meta has extended its partnership with Ray-Ban on fashionable smart glasses aiming to provide better ergonomic experience offerings and still offer users great style. The glasses are generally comfortable, allowing users to make calls, send texts, live-stream and listen to music using Meta AI alongside many other capabilities and features.  In 2025, the rising use of immersive technologies will be stimulated by the reduction in cost of their hardware and increased comfort of devices. Coupled with improving network speeds underlying the experience, more regular device use points toward more universal access to fast speeds from network infrastructure such as fiber and 5G which is required to power up and ensure improved AR and VR experiences without any network lag. Possible applications of these technologies vary from their use as training technologies – especially in areas which are considered dangerous such as mines, oil rigs etc. – to applications in healthcare where, for instance, they can be used to support the rehabilitation process. They can also be used to overlay the user experience in entertainment and sports.   Artificial intelligence  Over the past two years, AI has received increasing attention owing to the accelerated growth of investment in the field. Meanwhile, increased computing power and data availability have enabled algorithmic breakthroughs, allowing the field to attract more investment and talent. With the ability to create new human-like content spanning from images, text and code, generative AI promises to experience higher adoption as various organisations continue to deploy it in a variety of use cases. Next year will see a surge of organisations pushing for enhanced AI adoption, but this time companies will adopt a sharper focus on extracting value for business in 2025.  The key integration of generative AI will be to accelerate innovation and provide bespoke experiences, examples of which are customer service teams making increased use of far more intelligent AI-powered chatbots. These bots are available in multiple languages, including those indigenous to many countries. They seek to improve personalised experiences of customers, being able to handle routine inquiries in order to allow human call center agents to solve much more complex problems. In transport and logistics, for example, warehouse optimisation is being powered by AI-powered robots that navigate warehouses with precision, autonomously picking and packing orders, optimising storage space and dramatically accelerating fulfillment processes. Parallel to these innovations, 2025 will see the continuing sharpening of focus on AI governance and related platforms. Here, countries, organisations and society will need to get to grips with the demand for responsible use of both AI technology and data across multiple economic sectors. As we observed locally, South Africa also developed a national AI Policy Framework with private sector organisations developing similar strategies and policies to guide its use in business.  While generative AI technology continues to strengthen, AI systems will go beyond doing single tasks to resemble “a team of specialists” working together. Categorised as “agentic AI”, this new type of AI will essentially give bots the ability to act independently. Think of it like this: instead of just following your commands, agentic AI can figure things out on its own like a detective solving a case. Agentic AI can analyse information, make decisions and take action, all in the name of achieving a specific goal.  We could take another real-world example here, imagine a company that uses AI to manage its warehouse. With agentic AI the system would not only track inventory but also predict future demand for products, optimising storage space based on real-time needs, ordering new stock automatically when supplies run low and even controlling how robots move and organise goods within the warehouse. This application is just one example of how agentic AI can make business more efficient and intelligent across a range of industries. Cybersecurity  With digital transformation remaining a key focus within the 4th industrial revolution, cybersecurity will remain an important investment area in ensuring the security of technology systems and related data. There are various forms of cybersecurity threats which have continued to impact organisations within South Africa, both within the public and private sector. TransUnion is an example of one of the large organisations in South Africa which was impacted by a ransomware cyberattack in 2022 where the attackers demanded $15-million threatening to expose the customer data which it had access to. There were many similar such experiences in 2023 and 2024.    The cyber threat landscape has been further complicated by the rise of AI-powered attacks, cloud vulnerabilities, third-party exposures and insider threats. All of these potentially criminal interventions demand increased vigilance and proactive security measures, and as enterprises integrate AI into various processes so does the growth of AI-powered attacks. Cybercriminals are increasingly using AI to enhance their attacks, making them more difficult to detect and defend against. AI models themselves may be vulnerable to attacks like data poisoning, model stealing and adversarial examples. Economic sectors such as finance and telcos are predicted to strengthen investments significantly in this area as they seek to counter the risk of cyber threats identified globally. Furthermore, we will see a rise of investment in technologies that address disinformation and deepfakes.  Quantum computing  It was in the early 1980s when the tech world first glimpsed a few of the theoretical concepts representing the breakthrough of quantum computing. Now potential applications of quantum computing are endless and span diverse fields. In drug discovery, quantum computing can simulate molecular interactions, speeding up the development of new treatments.

Putting SA Inc on the map: Good governance and the impact on investor sentiment

By Professor Parmi Natesan, CEO of the Institute of Directors in South Africa (IoDSA) All eyes will be on South Africa when Johannesburg hosts the G20 Summit in November 2025, and along with it the B20. This influential business forum brings together business leaders from the Group of Twenty countries to assist heads of state in tackling global economic challenges. President Cyril Ramaphosa wants to use this global event to promote local business opportunities and attract foreign direct investment while also strengthening the position of Africa and the Global South – in short, putting SA Inc on the world map.  The B20 campaign kicks off in February 2025, continuing the Global South rotating presidency from its predecessors Brazil, India and Indonesia, before being handed over to the United States in 2026. For the first time, the presidency is held by an African nation, which makes it all the more crucial to prove to investors that South Africa is a trustworthy partner in shaping the new world economic order.  Fortunately, SA Inc’s preparations for the B20 come at a time when investor confidence is tentatively improving. In the first quarter after the formation of the Government of National Unity (GNU), the RMB/BER Business Confidence Index rose by three points to 38 in Q3 2024, which is the highest since Q4 2022. Now is the time for the public and private sectors to commit to strong governance – ensuring transparency, reducing operational risks, and promoting ethical conduct – to transform short-term improvements in investor confidence into long-term economic growth. Good governance is not an isolated compliance matter but a foundational element which fosters trust, resilience, and credibility in business and governments. It will take time and concerted effort to restore investor confidence after the Zondo Commission’s findings exposed the extent of governance failures and the consequences of unchecked corruption. South Africa still ranks a disappointing 41 out of 180 countries in Transparency International’s 2023 Corruption Perceptions Index. This is our lowest ever ranking, well below the global average, and again it is linked to governance – more precisely governance failures. “Corruption has eroded trust in both public and private institutions, deterring investment and stifling growth,” according to Transparency International. In 2024, the global non-government organisation called on the G20 leaders to prioritise anti-corruption measures to achieve their sustainable development goals, as it warns that corruption drains critical resources, impedes responses to health crises, and exacerbates poverty and inequality. Instead of reaffirming their resolve to fight corruption year after year, they must now bring their anti-corruption work out of its current silo and elevate it to the core of the G20 (and B20) summit.  Transparency International’s arguments underline the IoDSA’s mission to develop and advance good governance as the basic foundation for SA Inc. South Africans know only too well that corruption can destroy the fabric of society, because government and corporate failures have made people cynical about the political will of our leadership to truly bring malefactors to book. Corruption is the opposite of good corporate governance (i.e. ethical and effective leadership). Curbing corruption is therefore a prerequisite for strengthening investor confidence and attracting FDI.  It’s important to understand that corruption is not the same as poor corporate governance: despite being interconnected, they differ fundamentally. Corruption opposes the ethical principles that the King IV Report on Corporate Governance (King IV) advocates; it typically involves private individuals or public officials who act unethically and often illegally for their personal gain. Poor governance is not necessarily intentional as it is frequently a result of negligence, incompetence, or apathy, but similarly opposes King IV. When this manifests itself, for example as a lack of accountability and transparency in governance structures, it can lead to operational inefficiencies, financial instability, and declining economic prospects. These risks can deter investors, who are naturally drawn to environments where governance provides a robust foundation for managing risks and upholding ethical standards. Therefore, good governance that prioritises ethics and accountability, as outlined in King IV, will create a culture that inherently opposes corruption. Stronger governance standards are paramount for curbing corruption, enhancing investor trust, and positioning South Africa as a credible global business destination. But how can good governance be restored? Crucially, South Africa already has established some strong governance frameworks, notably King IV and the Companies Act, which are both recognised for advocating principles of transparency, ethical leadership, and sustainable practices. However, even the best governance codes rely on effective application to be impactful. Without consistent implementation, these structures lose their potential to uphold accountability and trust in both the private and public sectors. In the private sector, enhanced accountability mechanisms are needed, particularly around enforcing consequences for governance failures. Despite the availability of legal frameworks, there have been relatively few court findings of director delinquency, which undermines the culture of accountability in governance. Lack of oversight and accountability can harm investor relations and damage company reputations. In the public sector, a key area for improvement is ensuring that board members are appointed based on competence and moral compass, rather than political considerations. Such appointments would create an environment focused on performance and accountability, which would reduce the risks of mismanagement while fostering greater public trust. This is particularly important to improve the governance of embattled state-owned-enterprises.  At the local government level, the focus needs to be on the alarming number of municipalities that are struggling with governance. According to the Auditor-General of South Africa Municipal Audit Report for 2022/23, only 34 of 257 municipalities (13%) achieved clean audits, with 20 municipalities deemed “critically dysfunctional”. Implementing stronger governance practices such as accountability measures and skills development, would improve service delivery and rebuild community trust. Further encouragement comes in the form of South Africa’s robust regulatory environment, forward-thinking governance codes, and commitment to addressing governance challenges, which make us a resilient and appealing market for investment. With the G20 summit in Johannesburg, South Africa has an opportunity to reinforce its commitment to world-class governance standards and a transparent, sustainable business