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

The paper examines the potential of Fourth Industrial Revolution (4IR) technologies to transform South Africa's commercial landscape by reducing dependence on physical currency. It highlights the risks of cash-in-transit (CIT) heists and ATM attacks, noting that 243 CIT heists occurred in 2019. While acknowledging challenges such as the third-highest global rate of cybercrime and a large informal economy, the authors argue that digital payment systems—similar to those adopted in China, Kenya, and the UK—could improve security and economic inclusivity. The document identifies barriers to e-commerce growth in South Africa, including high banking charges, lack of funding for SMMEs, strict labour laws, and expensive internet data.

• South Africa faces significant security risks related to physical currency, with 2019 recording over 287 attacks on ATMs and 243 cash-in-transit (CIT) heists. Additionally, looting in July 2021 targeted ATMs, malls, and factories, resulting in estimated damages of USD 3.4 billion.
• The adoption of 4IR technologies and a shift toward virtual payments could mitigate the risk of cash-in-transit hijackings and supplement existing police intelligence-gathering and response efforts.
• Several factors hinder the growth of South Africa's e-commerce market, including banking charges for cashless payments, lender bias against small-medium and micro-enterprises (SMMEs), strict labour laws, and a workforce lacking business administration education. Internet data costs in South Africa are USD 2.67 per gigabyte, which is lower than the global average of USD 4.21.
• Despite having the third-highest rate of cybercrime globally, the document argues that cybersecurity is not an insurmountable barrier to 4IR adoption, citing China as an example of a country that fostered e-commerce while ranking first in worldwide cybercrime statistics.

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} }