Issue Brief

Takeaways from B20 South Africa article on Digital Transformation

Introduction

Digital technologies are instrumental in the facilitation of global commercial and trade flows, particularly those related to e-commerce. Balancing the development of streamlined digital infrastructure and connectivity with implementing reliable governance frameworks to secure digital channels and protect users is a key priority area for B20 stakeholders. Building upon recommendations on digital transformation across the previous two B20 Summits, the B20 South Africa Task Force on Digital Transformation has put forth four key recommendations on improving the penetration of digital technologies amongst B20 nations.

Recommendation 1: Expand inclusive modern digital infrastructure and connectivity to deliver affordable and reliable access to digital services, particularly in underserved regions

Under the aegis of Recommendation 1, the B20 South Africa Task Force on Digital Transformation recommends three policy actions. First, the Task Force recommends that G20 nations deploy high-speed internet infrastructure to connect unserved and underserved areas. Specifically, the Task Force recommends that G20 nations actively support the expansion of last-mile connectivity through Public-Private Partnerships (PPP). The Task Force argues that PPPs would foster digital inclusivity by connecting rural and remote communities and, subsequently, improving their participation in the digital economy at a national and international level. Under Policy Action 1, the Task Force also recommends that the G20 nations accelerate the transition from older networks to high-speed internet by establishing clear regulatory timelines and milestones for telecom providers. Through clear deadlines, telecom providers would face greater accountability, and governments would be able to monitor progress more transparently and identify bottlenecks to ensure the rapid uptake of high-speed internet.

Next, the Task Force recommends that G20 nations boost internet access in rural and low-income communities by supporting localised connectivity initiatives. The Task Force suggests G20 nations could support community-driven networks, local Internet Service Providers (ISP), and cooperative models by providing simpler licensing, grants or shared spectrum incentives to major providers. This action would not only reduce regulatory complexity but would also encourage greater participation by smaller internet providers in the market which could foster competition and innovation at a community level. Likewise, the G20 also suggests that establishing free or low-cost internet access points in schools, libraries, post offices, community centres and public Wi-Fi in public transport hubs in under-connected areas as an interim step towards full household connectivity

Finally, the B20 Task Force recommends that G20 nations scale access to connected mobile devices to enable full use of digital platforms in education, employment, healthcare, commerce and public services. To achieve this goal, the Task Force recommends that G20 nations improve the affordability of digital devices, ensuring greater accessibility for all populations and providing supportive finance to disadvantaged communities for essential digital devices and services.

Recommendation 2: Strengthen national digital literacy systems to equip the workforce with foundational and advanced capabilities aligned with future-oriented labour market demands

The Task Force recommends that the G20 promotes universal basic digital literacy by prioritising digital education, training programmes, and inclusive learning resources. The Task Force outlines four key strategies to promote universal basic digital literacy. First, the Task Force recommends that the G20 establishes targeted training programmes that enhance competencies and familiarity with Artificial Intelligence (AI), ethical understanding and innovative teaching methodologies amongst teaching faculty. Additionally, the integration of fundamental digital literacy and internet safety into educational curriculum would improve the ability of students to navigate the digital landscape. Furthermore, the expansion digital literacy training initiatives, which could be facilitated through partnerships with tech companies, could address digital literacy gaps. Finally, by tailoring digital literacy learning resources to local languages and cultures, more individuals across the world could access and learn to leverage digital technologies.

Additionally, the B20 Task Force recommends that G20 nations synchronise tertiary education with industry demands to prepare the workforce for digital and AI-enabled jobs. Specifically, in support of this goal, the B20 recommends that G20 nations modernise tertiary curricula to align with digital industry skill demands, strengthen collaboration between industry and education providers, expand digital literacy initiatives, and launch targeted digital literacy initiatives towards unemployed adults. The Task Force argues that these initiatives would ensure that education and training programs are synchronised with the needs of industry and, therefore, would provide companies with a supply of digitally competent talent.

Recommendation 3: Advance secure, trustworthy, inclusive and human-centric AI grounded in ethical standards, regulatory clarity and transparent practices

The Task Force recommends that G20 nations align countries to coherent and accountable AI governance frameworks as a shared basis for ethical development and regulation of AI. After the widespread adoption of AI in both the civic and corporate spheres of life, it has become a crucial skill and technology for workers to use in their occupations. At the same time, AI poses significant risks due to its tendency to generate misinformation. Therefore, governments must develop comprehensive regulatory frameworks to prevent negative externalities from emerging due to AI use. Specifically, the Task Force mentions that G20 governments could prioritise data access and quality while advancing data free flow with trust (DFFT) and support research and education focused on AI ethics and bias mitigation as potential actions that the G20 could take to achieve this goal.

Recommendation 4: Promote secure and inclusive digital public infrastructure (DPI) ecosystems that incentivise private sector innovation and investment

Finally, the Task Force recommends three key actions that G20 nations could take to develop frameworks that guide countries in designing and implementing people centred digital public infrastructure. First, the Task Force recommends that G20 nations align on clear policy frameworks and institutional mechanisms to stimulate private sector participation in the development of DPI. Second, the Task Force recommends that G20 nations support the development of DPI through built-in safeguards for cybersecurity, fraud mitigation, and data protection. Finally, the Task Force recommends that Legal Entity Identifier (LEI) as well as interoperable digital credentials are promoted by G20 nations to support secure and seamless digital trade.

Read the full B20 Task Force on Digital Transformation report here.