How do we create greater resilience and inclusion in South Africa after COVID?

15 February 2021 Marsh Africa
Spiros Fatouros, CEO at Marsh Africa

Spiros Fatouros, CEO at Marsh Africa

• The challenge of avoiding digital inequality
• How a more inclusive approach to digital transformation can provide long-term economic growth
• Why taking short cuts exposes South African businesses to increased risk of cyber-attack

A report, written in partnership with Marsh has been warning the world about the dangers of pandemics. COVID-19 has not only claimed millions of lives, but it also risks widened long-standing health, economic and digital disparities. Billions of caregivers, workers and students – especially minorities who were disadvantaged before the pandemic – could be at risk of missing pathways to the new and fairer societies that the recovery could unlock.

Globally, the acceleration of the digital transformation as a result of the pandemic promises large benefits, for example the creation of almost 100 million new jobs by 2025. At the same time however, digitalisation may displace some 85 million jobs, and since 60% of adults still lack basic digital skills, the risk is the deepening of existing inequalities. It is also expected to expose businesses, and their customers, to significantly greater risk of cyber-attacks.

Financial, digital and reputational pressures resulting from COVID-19 also threaten to leave behind many companies and their workforces in the markets of the future, creating potential disparities that could lead to societal fragmentation.

Commenting on the latest Global Risk’s key findings, Spiros Fatouros, CEO Marsh Africa, commented:When it comes to access to technology and digital skills, the gap between the “haves” and the “have nots” could widen. This has the potential to particularly affect young people. This is why it’s imperative that South African businesses work towards ensuring that in accelerating their digital transformation programmes, they do not miss the opportunity for growth that comes with embracing sections of society who might not have access to the technology necessary to function in a digital first world.

Economic and societal fallout from COVID-19 will profoundly impact the way organisations interact with clients and colleagues long after any vaccine rollout. As businesses transform their workplaces, new vulnerabilities are emerging, and rapid digitalisation is exponentially increasing supply chain disruption and cyber exposures. Cyber risk (30%) and misuse of technology (29%) were identified in the report by senior business leaders as some of their biggest concerns – a water crisis (63%) was highlighted as the number one risk to doing business. Mr. Fatouros believes “ every business will need to strengthen and constantly review their strategies if they are to improve their resilience to future shocks”.

In 2020, the risk of a global pandemic became reality, something this report has been highlighting since 2006. As governments, businesses and societies begin to emerge from the pandemic, they have an opportunity to shape new economic and social systems that improve our collective resilience and offer the capacity to reduce inequality, improve health and protect the planet.

The South African Government understands these challenges, establishing the Presidential Commission on the Fourth Industrial Revolution (4IR). The 4IR – inclusive of the private sector and civil society – ensures that South Africa is in a position to grab the opportunities and overcome the challenges of rapid technological advances.

Mr. Fatouros concluded, “The pandemic has been a stress-test that shook the foundations of economies and societies worldwide. Rebuilding resilience to systemic shocks will require significant funding, international cooperation, and greater social cohesion. South Africa is well placed to achieve this if businesses are willing to adapt their approach. Resilience will also hinge on the continued growth in connectivity, as we know that businesses that digitised early performed better in 2020.

Read the full Global Risks Report 2021 here and find out more about the Global Risks Initiative here.

Join the conversation using #risks21

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