UNCTAD: How frontier technologies can foster an inclusive COVID-19 recovery

The COVID-19 pandemic has brought to light the existing inequalities between developed and developing countries, with frontier technologies emerging as a potential solution to bridge the gap. According to a recent report by the United Nations Conference on Trade and Development (UNCTAD), governments in Africa have a unique opportunity to leverage frontier technologies for a more inclusive recovery post-pandemic. CNBC Africa recently interviewed Shamika Sirimanne, Director of the Division on Technology and Logistics at UNCTAD, to delve deeper into this critical issue. Sirimanne emphasized that frontier technologies such as AI, IoT, big data, blockchain, 3D printing, and robotics are all digital and represent a $350 billion market today, projected to grow to over $3.2 trillion by 2025. However, to fully benefit from the digital revolution, connectivity is essential. Currently, half the world lacks access to the internet, with even lower rates in least developed countries. Sirimanne warned that the digital divide today could become a development divide in the future if not addressed urgently. One of the key concerns highlighted in the report is the potential new inequalities that these technologies could create, particularly in AI bias and ethical considerations in gene technologies. The design of AI algorithms and the use of biased data can perpetuate inequalities, as demonstrated by one study that found gender bias in job advertisements based on Google account sign-ins. The COVID-19 pandemic has accelerated the digital transformation across sectors, with AI and big data playing crucial roles in vaccine development, contact tracing, and remote working. E-commerce has boomed during the pandemic, providing new avenues for small businesses and entrepreneurs to access global markets and generate income. Mobile and digital solutions are aiding financial inclusion, with Africa leading the way in mobile technology innovation. Despite concerns about job losses due to automation, the report suggests that not all tasks can be automated and that new technologies create new economic opportunities and professions. While there are fears that multinational companies may reshore production to developed countries, economic factors such as low wages and growing markets in African countries could deter such a shift. The African Continental Free Trade Agreement (AfCFTA) presents significant opportunities for intra-regional trade, making reshoring less appealing from an economic perspective. In conclusion, the report underscores the immense potential of frontier technologies in driving inclusive growth and economic recovery in Africa post-COVID-19, provided that the necessary conditions and policies are implemented to ensure equitable access and distribution of these technologies.