logo
South Africa intensifies digitalization ahead of G20 Summit

South Africa intensifies digitalization ahead of G20 Summit

Coin Geek6 hours ago
Getting your Trinity Audio player ready...
In November, South Africa will host the world's most powerful leaders at the G20 Leaders' Summit in Johannesburg, marking the first time the meeting has been held in Africa. As the summit approaches, the South African government is intensifying its push for an inclusive digital economy amid calls from African leaders to champion the continent's cause.
In its most recent initiative, South Africa launched the G20 Tourism Hackathon, tasking local innovators with solving prevailing tourism challenges using technology. The three-day event focused on climate-resilient tourism and using the latest tech to empower small and medium enterprises (SMEs) within the sector.
Tourism is one of South Africa's biggest industries, accounting for 9% of its $418 billion gross domestic product (GDP) last year and employing over 11% of the workforce. The country ranked fourth behind Tunisia, Egypt, and Morocco, with nine million visitors, who brought in over $7 billion.
The hackathon winners will present their ideas at the G20 Tourism Ministers' Meeting in September.
Beyond the hackathon, the government launched the G20 Tourism Community Outreach in the Northern Cape, its largest province by land area. The initiative forms part of the country's commitment to the four G20 tourism pillars: improved connectivity, financial access, building resilience, and SME innovation. It provides a platform for local businesses to interact with G20 experts, policymakers, and delegates.
The G20 has promoted tourism as one of the key pillars of change, from promoting cultural exchange to employing millions of people. Tourism is also billed as one of the best ways to address environmental challenges as it creates economic incentives to protect nature and directly supports conservation through the revenue it generates.
Beyond tourism, African leaders have called South Africa to utilize its G20 presidency to push for the continent's digital transformation. Some, like the African Director at the Gates Foundation, Paulin Basinga, say this presidency needs to result in significant gains in advancing Africa's digital public infrastructure.
Rennie Naidoo, a professor at the University of the Witwatersrand, says South Africa's leadership 'is a rare opportunity for Africa and other emerging economies to shape the next chapter of the digital age on their own terms.'
Emerging economies have long been spectators in the tech world, with all the solutions being developed by, and disproportionately favoring, the developed economies. Even with artificial intelligence (AI), the United Nations says over 120 countries have been left out of the conversation. The agency says that only a few countries will benefit from the $4.8 trillion AI economy, and that the tech could further widen disparities for the Global South. Morocco partners UNDP to accelerate digital transformation
In North Africa, Morocco has signed an agreement with the United Nations Development Programme (UNDP) to advance inclusive digital transformation in the country and in other Arab States.
Under the agreement, the two will promote the responsible use of AI, advance digital public services, and develop regulatory frameworks that foster digital transformation in the country.
The two partners view digital transformation as a 'powerful enabler of sustainable development and regional integration,' commented Marina Walter, the UNDP's deputy director for Arab States.
'Morocco is demonstrating great leadership not only in advancing its national digital agenda but also towards helping to shape a collaborative, future-oriented digital ecosystem across the Arab States and African regions—one that is inclusive, resilient, and capable of delivering real impact,' she added.
According to the UN, Internet penetration in Africa has increased from 25% in 2019 to 38% in 2024. In Arab States, it has jumped from 29% in 2012 to 70%. However, despite the increased penetration, its impact is uneven, with most countries facing systemic challenges that limit the benefits for the people.
This includes poor and fragmented infrastructure; in AI, for instance, only 5% of the continent's talent has access to the computational power it needs to build applications effectively. Additionally, 80% of the continent's data is stored offshore.
The new agreement was signed on the sidelines of the inaugural National Forum on Artificial Intelligence, which brought together Moroccan government officials, innovators, and global experts to discuss the future of AI.
Watch: Boosting financial inclusion in Africa with BSV blockchain
title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Cuban economy continues five-year decline, economy minister says
Cuban economy continues five-year decline, economy minister says

Reuters

time29 minutes ago

  • Reuters

Cuban economy continues five-year decline, economy minister says

HAVANA, July 14 (Reuters) - Cash-strapped Cuba's grueling crisis shows no signs of improvement, Cuban Economy Minister Joaquin Alonso said on Monday, announcing growth fell 1.1% last year on top of a 10% decline since 2019, official media reported. Alonso was speaking to the Cuban parliament's economic commission where he also indicated there was little hope for improvement this year, given toughening U.S. sanctions and a complicated international situation. The import-dependent Caribbean island nation has seen foreign currency revenues fall by around 30% in recent years, causing shortages of food, fuel, medicine and inputs for agriculture and manufacturing. A lack of fuel and equipment has crippled the energy grid, leading to daily blackouts in the Communist-run country of as much as 16 hours or more. Agriculture, livestock farming, and mining have fallen 53.4% over the last five years, and manufacturing 23%, Alonso reported. The minister was quoted as saying that this year and last had been marked "by the intensified impact of the blockade, the fierce persecution of financial flows, and barriers to international transactions that have hindered payments to suppliers." Alonso said hard currency earnings this year were 9% below the same period last year while imports were running 7% above last year's rate. "Cuba is importing more than it exports, which increases the debt," he was quoted as stating. The country last reported its foreign debt as $19.7 billion in 2020.

Fightback for Square Mile: Change is happening - but a high tax economy doesn't help, says ALEX BRUMMER
Fightback for Square Mile: Change is happening - but a high tax economy doesn't help, says ALEX BRUMMER

Daily Mail​

time38 minutes ago

  • Daily Mail​

Fightback for Square Mile: Change is happening - but a high tax economy doesn't help, says ALEX BRUMMER

Finally, Labour might be getting the message. Mistakes it has made on running the economy have been piling up and it needs to rethink. In her first intervention, the director of the Institute for Fiscal Studies Helen Miller will have her say today before Rachel Reeves addresses City panjandrums at the Mansion House. Miller notes that Labour came to office promising 'mission' driven government, but spent the first year limping from fiscal event to fiscal event 'obsessed with run of the mill revisions'. This echoes the International Monetary Fund's recommendation that the Chancellor confines herself to one major budget event a year. Reeves made a trap for herself. She empowered the Office for Budget Responsibility's (OBR) fiscal judgements – removing flexibility. Despite a £40billion tax increase, she left the Government little room to manoeuvre. Is the Chancellor now seeing the light? The Treasury is taking the IMF advice seriously and reviewing whether the OBR's role can be de-escalated, curtailing never-ending speculation about the next tax increases. A review of Treasury media operations is underway. When ministers fail to receive the positive interpretation of policy craved, they blame the messenger. There is something oddly backward-looking in the way Reeves prioritises attacking her predecessors rather than extolling and encouraging her growth mission. One solution might be to end Stalinist-like controls over press events. Questions often are confined to one per organisation. Not all outlets get called upon, and there is even evidence of officials seeking to establish what the questions might be ahead of time. Something more freewheeling might elicit more meaningful, confident and clearer outcomes. Useful changes are taking place. Reeves will sweep some red tape away at the Mansion House. Over-zealous rules, put in place post-Great Financial Crisis, are to be scrapped to boost home ownership. Another goal is to make it more attractive for overseas finance firms to come to the UK. Citadel is already heading in this direction. The difficulty is that changes already made to levies in wealth, and fears of more to come, means that it is a case of one in and 16,500 out. Lifting the red tape surrounding the choice of senior managers in financial companies would be a useful change. Even with the bureaucracy, it is not a regime that functions well, as the debacle over the flawed checks on Jes Staley as chief executive of Barclays illustrates. The City regulator, the Financial Conduct Authority, is seeking to bring listings back to the UK by demolishing barriers to fundraising by listed firms and making corporate bonds more accessible to retail investors. Change is happening but a flatlining, high tax economy doesn't scream come and get me. Testing times Unilever's latest chief executive Fernando Fernandez knows there is no time to lose with activist Nelson Peltz impatient to release value. Often overlooked is the strong heritage Unilever has in India, its second biggest market, where quoted offshoot Hindustan Unilever is a dominant force with a leading share in many categories. Fernandez is very conscious that India remains a fantastic opportunity. The country has a fast-expanding middle-class and the potential for 85 per cent output growth by 2033. Into the top job goes Priya Nair, group boss of beauty and wellbeing, among the group's fastest growing areas. Her task will be to maintain those market leading positions amid challenges from home-based beauty rivals, online sites such as Blinkit offering a great variety of brands and sales increases which lag rivals such as Nestle. Straddling the emotions of cricket fans, as England edges ahead in the Test series, could be part of the challenge. Water feature It was inevitable, one supposes, that burst-mains leakage specialists and champion polluters Thames Water would be quick to join Yorkshire and South-East Water with hosepipe bans. So far, it is upstream counties targeted. As negotiations over Thames' financial viability continue, it was probably best not to antagonise the City and its environs any further.

Why wouldn't a wealth tax work in Britain?
Why wouldn't a wealth tax work in Britain?

The Independent

time2 hours ago

  • The Independent

Why wouldn't a wealth tax work in Britain?

Not so long ago, when Labour was in opposition and still popular, there was no question of introducing a wealth tax. Yet today, influential figures such as former leader Neil Kinnock and ex-first minister of Wales Eluned Morgan, and some trade unions, are advocating just such a change. More tellingly, ministers simply refuse to rule out a wealth tax as they might have done before. The latest to do so is the transport secretary, Heidi Alexander, who was asked if the topic had come up at last Friday's cabinet away day and enigmatically replied: 'Not directly.' Teased at Prime Minister's Questions on the subject, even Keir Starmer couldn't bring himself to issue a flat denial. Some wonder if a wealth tax could actually happen... What did Labour promise? There's nothing in the manifesto to rule out a wealth tax, but in an interview in August 2023, Rachel Reeves was unequivocal: 'We have no plans for a wealth tax. We don't have any plans to increase taxes outside of what we've said. I don't see the way to prosperity as being through taxation. I want to grow the economy,' she said, adding: 'We won't be doing that. It's a denial.' And as recently as her spring statement in April, she declared: 'We're not interested in a wealth tax. Our priority is to grow the economy, and that's the way that you make working people better off and secure better public finances.' What does the left want? It's usually stated as a 2 per cent levy on assets – property, shares, art etc – owned by individuals in excess of £10m. For example, someone worth £12m would pay a levy of 2 per cent of £2m – a bill of £40,000. It could be paid immediately, or deferred to disposal (or death). Figures such as Richard Burgon, a left-wing MP who believes in it, says it would raise 'up to' £24bn. What does the chancellor say? As little as possible at the moment, suspiciously sticking to the 'working people' line (though some working people are worth £10m, and more). No denials, then. What are the arguments for a wealth tax? It's said that the country shouldn't balance the books on the backs of the most vulnerable, and that fairness demands that those with the broadest shoulders bear the greatest burden. Recent controversies about disability benefits and children with special needs have heightened the arguments. It's also true that wealth in the UK is undertaxed compared with income, and that we live in an unequal society, at least by some European standards. Economists warn about what might happen as wealth accumulates through inheritance over the very long run. As Thomas Piketty puts it: 'Inheritance will eventually matter a lot pretty much everywhere – as it did in ancient societies. Past wealth will tend to dominate new wealth, and successors will tend to dominate labour earners.' The present debate about 'intergenerational fairness' is one artefact of this phenomenon. And against a wealth tax? It has been tried, and failed. Comparable nations such as France, Germany, Switzerland and Norway have more or less abandoned wealth taxes, or found them to be unproductive. Almost half a century ago, a previous British Labour government issued a green paper on a proposed wealth tax, but then the chancellor, Denis Healey, concluded it would be impractical and too costly to administer. The wealthy have always found ways to avoid such taxes and protect their assets, while the super-rich simply skip the country altogether. Tax expert Dan Neidle judges: 'The idea that we can do something different is naive. It's arrogant to think that we in the UK can achieve a holy grail everyone else has been too stupid to find.' What wealth could be taxed? An uncomfortable truth is that the easiest wealth to tax would be the most politically difficult – and arguably, the least fair: homes and pension pots belonging to individuals worth far less than £10m, and who would fall into the category of 'working people' that Labour has pledged to look after. After all, you can't take the house in which you live and move it overseas. And many of the assets in question will have been taxed already. Any government that tried to tax a capital gain on a principal private residence would place itself in opposition for a generation. What are the practical problems with a wealth tax? Imagine obliging everyone to declare an accurate value for the property (and everything else) they own, along with how much they paid for it, or when it was inherited and its value at the time, and then employing HMRC officials to undertake checks and audits on such a mass of information. Should theoretical, unrealised gains be index-linked to allow for inflation? Any allowance for, say, renovating a derelict building? What counts and what doesn't? Wedding rings? A classic car? The family business? And how about offsetting capital losses on bad investments or failing companies? It would take years to process. What could Reeves have her eye on? It could be large, uncrystallised capital gains on assets such as rental properties, bonds, pension pots and shares at death, which mostly escape inheritance tax (IHT). It would basically be an extension of inheritance tax, itself a deeply unpopular levy (albeit few pay, and the thresholds are generous). Anything else? Capital gains on virtually anything except a main home are already taxed, as are pension pots in certain circumstances, and there isn't that much room left to hike these tax rates. Stamp duty on mansions has already been increased substantially, and of course 'non-dom' status was abolished by the previous government. The 'family farm tax' – the removal of the IHT exemption for agricultural property – is another recent, and unwelcome, change for many. They've even specifically taxed private jets. Beyond a certain level, heavy disincentives to save and invest start to kick in, which would be bad for the economy. For example, Neidle shows how this can depress investment: 'A 2 per cent wealth tax doesn't sound like much, but for someone earning an 8 per cent return on their assets, that plus existing dividend tax creates an effective rate of 60 per cent – and on a year when assets decline, an effective rate of over 100 per cent. That creates an incentive to avoid the tax out of all proportion.' Tax rates set too high on savings mean that people are unduly encouraged to consume rather than make provision for their old age or any periods of unemployment, with dire long-term effects on the Exchequer and on economic growth. It might therefore not raise much revenue for long. Politically, it makes a government look desperate, as if it's constantly looking for new things to tax rather than getting the economy to grow.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store