South Africas Risky Commercial Climate: Fourth Industrial Revolution Technologies and the Reduction of a Currency Dependence

This research paper argues that South Africa should adopt Fourth Industrial Revolution (4IR) technologies to transition toward a cashless economy, thereby reducing the risks associated with cash-in-transit (CIT) hijackings and enhancing its investment appeal despite high rates of cybercrime.

• South Africa faces significant security risks related to physical currency, including 243 cash-in-transit (CIT) heists and over 287 ATM attacks in 2019. Additionally, looting in July 2021 following the arrest of former president Jacob Zuma resulted in damages estimated at USD 3.4 billion.
• The adoption of 4IR technologies—including AI, big data, 5G, cloud computing, and robotics—could mitigate CIT robberies and supplement existing police intelligence and response strategies to make the transportation of cash safer.
• Several barriers hinder the growth of South Africa's e-commerce market, including expensive internet data (USD 2.67 per gigabyte), strict labour laws, a lack of business administration education in the workforce, and lender bias against small-medium and micro-enterprises (SMMEs).
• While South Africa has the third-highest rate of cybercrime globally, the authors argue this is not an insurmountable barrier to digital transition, citing China as an example of a country that fostered e-commerce despite ranking first in worldwide cybercrime statistics.
• Global trends show a significant shift toward digital currencies: in the UK, some estimates suggest 96% of currency is digital, while in Sweden and Denmark, cash payments account for only 3% of detected transactions.

APA

Sekgololo, J., Gondwe, N., & Ndzendze, B. (2021). South Africas Risky Commercial Climate: Fourth Industrial Revolution Technologies and the Reduction of a Currency Dependence. Africa Policy Research Institute. https://afripoli.org/south-africas-risky-commercial-climate-fourth-industrial-revolution-technologies-and-the-reduction-of-a-currency-dependence

Chicago

Sekgololo, Johannes, Nomzamo Gondwe, and Bhaso Ndzendze. South Africas Risky Commercial Climate: Fourth Industrial Revolution Technologies and the Reduction of a Currency Dependence. Africa Policy Research Institute, 2021. https://afripoli.org/south-africas-risky-commercial-climate-fourth-industrial-revolution-technologies-and-the-reduction-of-a-currency-dependence.

Wikipedia

{{cite report |last1=Sekgololo |first1=Johannes |last2=Gondwe |first2=Nomzamo |last3=Ndzendze |first3=Bhaso |title=South Africas Risky Commercial Climate: Fourth Industrial Revolution Technologies and the Reduction of a Currency Dependence |publisher=Africa Policy Research Institute |date=28 October 2021 |url=https://afripoli.org/south-africas-risky-commercial-climate-fourth-industrial-revolution-technologies-and-the-reduction-of-a-currency-dependence |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sekgololo2021south, author = {Sekgololo, Johannes and Gondwe, Nomzamo and Ndzendze, Bhaso}, title = {{South Africas Risky Commercial Climate: Fourth Industrial Revolution Technologies and the Reduction of a Currency Dependence}}, institution = {Africa Policy Research Institute}, year = {2021}, month = oct, url = {https://afripoli.org/south-africas-risky-commercial-climate-fourth-industrial-revolution-technologies-and-the-reduction-of-a-currency-dependence}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }