[Opinion Piece]
By :Chuma Memela, AI Consultant & Managing Director at Genie-yus AI
EAST LONDON- Artificial intelligence(AI) is reshaping economies, shifting power and redrawing the global development map. Countries across the globe are actively investing in AI infrastructure, governance and skills. South Africa, however remains largely unprepared.
This lack of readiness is a strategic failure that will cost us jobs, relevance and long-term competitiveness in the global economy.
In 2017, the United Arab Emirates appointed the world’s first Minister of Artificial Intelligence. Canada launched the first national AI strategy in the same year, backed by an initial investment of 125 million Canadian dollars, and updated it in 2021 with a further 443 million. Singapore’s AI strategy includes national frameworks for data governance, skills development and public service integration.
Across the continent, Rwanda has partnered with the World Economic Forum to establish the Centre for the Fourth Industrial Revolution, positioning itself as a regional AI leader. Furthermore, Kenya’s Ministry of ICT included AI in its 2019 Digital Economy Blueprint and the country continues to support local AI use in agriculture and finance.In contrast, South Africa has not taken decisive steps to embed AI into national policy.
The 2020 report by the Presidential Commission on the Fourth Industrial Revolution(4IR) proposed several high-level recommendations, including the development of an AI institute, integration of 4IR into education and promotion of South African tech exports. Yet, nearly four years later, South Africa still has no published national AI strategy, no formal roadmap and no significant budget allocation for implementation.
In addition the Department of Communications and Digital Technologies only makes general references to AI in its 2023 to 2024 annual report and budget documentation, without presenting any measurable deliverables. Skills development and AI adoption remain buried within broader ICT development categories, with no distinct national implementation plan.
The 2023 Estimates of National Expenditure also do not reflect any targeted allocations for AI research, data infrastructure or innovation.This policy ambiguity has left departments operating in silos, without coordination, timelines or accountability, resulting in a fragmented public response to a global shift that demands strategic clarity. There is also a critical gap in public understanding. The public sector lacks the internal capacity to engage with AI in a meaningful way. Government officials are not being trained to procure or govern AI systems. Data infrastructure is fragmented and there is no legal framework for algorithmic accountability or ethical AI deployment.The consequences are already visible.
According to Statistics South Africa, the unemployment rate among young people aged 15 to 34 remains above 45 percent. Meanwhile, job roles in finance, healthcare, agriculture and administration are being automated across the globe. AI will not eliminate all jobs, but it will fundamentally change how work is done.This skills deficit extends into the broader education system, where the response to AI has been slow, inconsistent, and misaligned with global trends. South African learners are not being adequately prepared for an AI-influenced labour market.
The 2020 National Digital and Future Skills Strategy identified digital literacy, data competency, and youth integration as priorities. Although an implementation programme was launched in 2022 to reform Technical Vocational Education and Training(TVET) colleges, train educators and establish a digital skills observatory, progress has been uneven.
To add to this coding and robotics have been introduced in selected schools, however coverage is limited and lacks national coordination. AI remains confined to niche university departments, with minimal integration into disciplines like education, law or governance. The majority of civil servants have not received training on data or AI application in their departments.In contrast, international efforts are accelerating. Microsoft, for example, has committed to training one million South Africans in AI and cybersecurity by 2026, highlighting the gap between public ambition and private initiative.
These shortcomings in education and skills development are closely tied to broader structural risks in the economy, particularly as global competitiveness increasingly depends on technological capability. South Africa’s economy is already struggling with low growth, low productivity, and declining competitiveness. Without AI integration, these trends will worsen.This is not just a local concern; the global AI market is expected to add over 15 trillion US dollars to the world economy by 2030.
Countries that invest early will build new industries and dominate global exports. Although South African businesses, particularly in banking and retail, are starting to adopt AI tools, there is no supportive ecosystem to scale local innovation.Government budgets remain focused on broadband and basic digital access, with no dedicated investment in AI-specific research or development.
There is no formal public procurement pathway for local AI startups to pilot or scale their tools. Sovereign data platforms have not been established, and data infrastructure remains fragmented. Some progress has been made through private sector partnerships, but these remain isolated efforts, not part of a cohesive national strategy.
In the absence of policy direction, South Africa continues to rely heavily on imported platforms, reinforcing foreign dependency and constraining long-term digital sovereignty. This is not just a digital trade imbalance but a loss of sovereignty.
Photographs: Chuma Memela
