South Africa Information Technology Country launches draft National AI Strategy
South Africa has taken a significant step towards embracing the future with the launch of its Draft National Artificial Intelligence (AI) Plan. On April 5, 2024, the Department of Communications and Digital Technologies (DCDT) released the National AI Plan during the National AI Summit. The plan outlines the government’s vision for integrating AI into various sectors and promoting innovation, and it will guide the development of the legal, governance, and regulatory framework. The AI National Plan aims to provide a clear, step-by-step roadmap for developing and implementing AI solutions in the country, inspiring and encouraging individuals and organizations to adopt AI. The launch of the National AI Plan demonstrates that South Africa is taking artificial intelligence seriously. It paves the way for fruitful collaborations and investments, presenting many prospects for U.S. businesses.
South Africa has established itself as a major tech hub in Sub-Saharan Africa, with Cape Town and Johannesburg hosting some of the largest tech ecosystems. Thus, with the launch of the National AI Plan, the government wants to position the country as a leader in developing and implementing AI solutions while also aligning with the National Development Plan (NDP2030) with a focus on critical areas such as policy, talent development, and investment to ensure success.
While the AI plan is still being considered, it provides opportunities for U.S. companies looking to expand into the South African market. The plan targets for ZAR70 billion (USD3.7 billion) in government, local, and foreign direct investment in AI by 2030, with 100-300 AI startups and 5000 AI experts in the country.
Opportunities for U.S. Companies Include:
Technology Transfer and Collaboration: The U.S. and U.S. Companies have advanced AI technologies, expertise, and experience to collaborate with South African companies for technology transfer, share best practices, and develop local solutions.
Market Expansion: There is a growing demand for AI solutions in South Africa, which can allow U.S. companies to expand their market presence. U.S. businesses can strategically position themselves to offer innovative AI products and services across diverse sectors. A research report by Oliver Wyman Forum from January 2024 shows that more than 60% of South African workers use generative AI tools in their jobs. AI is already reshaping the retail landscape in South Africa. Retailers are increasingly using data-driven insights and automation to streamline operations, improve supply chain management, and provide more personalized shopping experiences with Chatbots and virtual assistants. Retail-tech-trends-revolutionising-sa-shopping
Skills Development and Training: one of the National AI Plan’s goals is to have 5000 AI experts in the country. With this emphasis on building AI capabilities, there is a need for training programs, workshops, and educational initiatives to upskill the workforce in AI technologies. This will allow U.S. companies specializing in AI education and training to offer their expertise and contribute to talent development in South Africa.
Other opportunities for U.S. companies include Applied AI and Generative AI solutions in Manufacturing, Healthcare, Mining, Finance, Education, Transportation and Logistics, and Government.
The South African Draft National AI Strategy marks a significant step forward in the country’s goal of AI-driven growth and development. For U.S. companies, it represents a gateway to the African market as well as an opportunity to contribute to advancing AI technologies globally. U.S. businesses can thrive in this dynamic and evolving landscape by embracing collaboration, innovation, and responsible AI practices.
Major AI Events taking place in South Africa: The AI EXPO 2024, October 30 – 31 in Johannesburg, South Africa.
For additional information about the South African A.I. sector and the AI EXPO 2024, please contact Commercial Specialist Lonje Mwendera at Lonje.mwendera@trade.gov