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14 October 2020 | Story Prof Francis Petersen | Photo Sonia du Toit
Prof Francis Petersen.
It is a well-known fact that the South African economy was in deep trouble before the COVID-19 pandemic, with unsustainable levels of debt, a growing budget deficit, and an 8% projected contraction of the economy post the pandemic.  There is a clear realisation that the economy needs a recovery plan, with the significant expansion of productive employment opportunities for South Africans.  In fact, the Social Partners’ Economic Recovery Plan, coordinated by Nedlac, was developed to increase investor, consumer, and public confidence, and to turn the economy around in the short and medium term.  The plan provides specific interventions, and although the actions as specified are not new, it argues for ‘significant convergence among the Nedlac partners on what needs to be done to set our economy on a new accelerated, inclusive, and transformative growth trajectory’.  President Cyril Ramaphosa will present the plan to parliament this week.

The private sector, industry, and business are key components of the economy, primarily driven by manufacturing, financial services, transport, mining, agriculture, and tourism.  Although I believe that government can and should contribute to economic growth, the private sector, business, and industry are the components that will generate real growth in the economy.   Business for South Africa (B4SA) has pledged their commitment to work with the social partners to implement these action steps – and it needs to be emphasised that these interventions are not new!  However, the dilemma lies in the implementation of these actions in terms of inaction, urgency, and effectiveness.  Whether it is to address the energy crisis (more specifically, the security of energy supply), local manufacturing, supporting the recovery and growth of tourism, investment in the mining, agriculture, and infrastructure sectors, adversarial relationships, egos and political rhetoric needs to be replaced by collaboration, co-creation, and action.  


Lack of action threatens livelihoods

It is clear that the political, business, and societal spheres do not need more workshops, conversations, policies or plans – these are all available and known.  We need to build a capable state (which includes the architecture of the SOEs), introduce appropriate labour reform, corruption across all spheres of government, business, and social partners is unacceptable and need to be decisively addressed, policy and regulatory certainty and proper fiscal reform are required.  Why is it then so difficult to implement these if all stakeholders are in agreement, even if everyone is aware that lives and livelihoods are threatened every minute when these actions are not implemented?  Is it the lack of political will or lack of political leadership?  

Although B4SA also places emphasis on the implementation of these actions, I find the individual voices of industry, private sector, and business leaders absent. In my engagement with some of these leaders, they have stated that although their responsibilities are to their boards and shareholders, two sets of principles drive their business agenda: doing more with less (effectiveness and efficiency), and doing good while doing business (community upliftment through social performance), underpinned by a green focus.  Although international leaders in the mining industry, such as Mark Cutifani (Anglo American), Mark Bristow (Barrick), Mick Davis (ex-Xstrata), and many other business and industry leaders argue for foreign investment in South Africa, certainty in the country’s regulatory framework is required for this to materialise. 

A strong economy is also important for graduates 

It is obvious why the South African economy needs to recover, and that the existence of a strong private sector, industry, and business is critical in achieving this recovery.  From a higher education perspective, a powerful and effective educational experience is developed when academia and a strong private sector and industry work side by side.  Such a collaborative and co-created model results in breakthroughs and overall advancement of higher education institutions, business, and industry, and importantly – the students.  The continuous contraction of the South African economy further lends itself to the unemployment crisis, where the weak economic performance is not sufficient to create jobs in line with the population growth, which in itself presents a massive challenge for university graduates.  A strong focus on employability as part of the core business of a university, and the ability to equip graduates with the necessary skills to navigate the future world of work will remain crucial factors – not only now, but also in the coming years, and a relationship with a strong industry, private sector, and business is pivotal in driving this.

The financial model used in a South African (residential) university consists of three main income sources: (i) the state or government through a subsidy (the so-called ‘block grant’), (ii) tuition fees, and (iii) third-stream income (which is mainly a cost-recovery component from contract research, donations, and interest on university investments). The National Student Financial Aid Scheme (NSFAS) contributes to the tuition fees through a Department of Higher Education, Science and Innovation Bursary Scheme, providing fully subsidised free higher education and training to poor and working-class South Africans (recipients will typically be students from households with a combined income of less than R350 k per annum).  

Negative impact of COVID-19

The negative impact of COVID-19 on the income drivers of the university can be severe.  The subsidy from the state or government has already been cut, with potential further cuts in both the subsidy and specific earmarked funds. The pressure on income derived from tuition fees (that component which is not funded through NSFAS) will increase, as households would have been affected by the nationwide lockdown and the economy in deep recession, and a significant number of jobs would have been lost. The economic downturn, due to both COVID-19 and a sovereign downgrade by all rating agencies, has already negatively impacted local financial markets as well as the global economy. The multiplier effect of this would be that the value of investments and endowments would decrease, and philanthropic organisations and foundations would most probably reduce or even terminate ‘givings’ to universities.  Although industry, private sector, and business will re-assess their funding to universities, whether for research or bursary support, it is also an opportunity for such a strong sector to at least assist universities to ‘fill this financial gap’ in the short and medium term.  

Although, it is not expected that business and industry will just ‘fill this financial gap’ – institutions of higher learning need to argue and demonstrate a value proposition to these sectors.  COVID-19 has clearly demonstrated the focus of collaboration and co-creation among different stakeholders – these should be explored more concretely.  Should vice-chancellors (a representative of this group) not be part of BUSA or Business Leadership SA as a first step to bring higher education institutions and the different leaders of the economy closer?  Although COVID-19 has negatively impacted the financial position of the industry and business sectors, my assessment is that these sectors would recover faster than anticipated, but the effective and urgent implementation of a ‘state economic recovery plan’ is essential – every day that this implementation is stalled, it is affecting the country and its people severely.

Public-private partnerships key to economic growth

Government and the industry and business sector need to work together to foster economic growth – now more than ever.   The plans to achieve this are available – the implementation thereof, however, is lacking. A strong industry and business sector have major benefits for the country, among others, for the higher education sector. Let us not delay this further, political leadership needs to be decisive and the industry and business sector must continue to speak out – this sector is too important to be neglected.

Opinion article by Prof Francis Petersen, Rector and Vice-Chancellor of the University of the Free State and former executive of Anglo American Platinum.

News Archive

Eye tracker device a first in Africa
2013-07-31

 

 31 July 2013

Keeping an eye on empowerment

"If we can see what you see, we can think what you think."

Eye-tracking used to be one of those fabulous science-fiction inventions, along with Superman-like bionic ability. Could you really use the movement of your eyes to read people's minds? Or drive your car? Or transfix your enemy with a laser-beam?

Well, actually, yes, you can (apart, perhaps, from the laser beam… ). An eye tracker is not something from science fiction; it actually exists, and is widely used around the world for a number of purposes.

Simply put, an eye tracker is a device for measuring eye positions and eye movement. Its most obvious use is in marketing, to find out what people are looking at (when they see an advertisement, for instance, or when they are wandering along a supermarket aisle). The eye tracker measures where people look first, what attracts their attention, and what they look at the longest. It is used extensively in developed countries to predict consumer behaviour, based on what – literally – catches the eye.

On a more serious level, psychologists, therapists and educators can also use this device for a number of applications, such as analysis and education. And – most excitingly – eye tracking can be used by disabled people to use a computer and thereby operate a number of devices and machines. Impaired or disabled people can use eye tracking to get a whole new lease on life.

In South Africa and other developing countries, however, eye tracking is not widely used. Even though off-the-shelf webcams and open-source software can be obtained extremely cheaply, they are complex to use and the quality cannot be guaranteed. Specialist high-quality eye-tracking devices have to be imported, and they are extremely expensive – or rather – they used to be. Not anymore.

The Department of Computer Science and Informatics (CSI) at the University of the Free State has succeeded in developing a high-quality eye tracker at a fraction of the cost of the imported devices. Along with the hardware, the department has also developed specialised software for a number of applications. These would be useful for graphic designers, marketers, analysts, cognitive psychologists, language specialists, ophthalmologists, radiographers, occupational and speech therapists, and people with disabilities. In the not-too-distant future, even fleet owners and drivers would be able to use this technology.

"The research team at CSI has many years of eye-tracking experience," says team leader Prof Pieter Blignaut, "both with the technical aspect as well as the practical aspect. We also provide a multi-dimensional service to clients that includes the equipment, training and support. We even provide feedback to users.

"We have a basic desktop model available that can be used for research, and can be adapted so that people can interact with a computer. It will be possible in future to design a device that would be able to operate a wheelchair. We are working on a model incorporated into a pair of glasses which will provide gaze analysis for people in their natural surroundings, for instance when driving a vehicle.

"Up till now, the imported models have been too expensive," he continues. "But with our system, the technology is now within reach for anyone who needs it. This could lead to economic expansion and job creation."

The University of the Free State is the first manufacturer of eye-tracking devices in Africa, and Blignaut hopes that the project will contribute to nation-building and empowerment.

"The biggest advantage is that we now have a local manufacturer providing a quality product with local training and support."

In an eye-tracking device, a tiny infra-red light shines on the eye and causes a reflection which is picked up by a high-resolution camera. Every eye movement causes a change in the reflection, which is then mapped. Infra-red light is not harmful to the eye and is not even noticed. Eye movement is then completely natural.

Based on eye movements, a researcher can study cognitive patterns, driver behaviour, attention spans, even thinking patterns. A disabled person could use their eye-movements to interact with a computer, with future technology (still in development) that would enable that computer to control a wheelchair or operate machinery.

The UFS recently initiated the foundation of an eye-tracking interest group for South Africa (ETSA) and sponsor a biennial-eye tracking conference. Their website can be found at www.eyetrackingsa.co.za.

“Eye tracking is an amazing tool for empowerment and development in Africa, “ says Blignaut, “but it is not used as much as it should be, because it is seen as too expensive. We are trying to bring this technology within the reach of anyone and everyone who needs it.”

Issued by: Lacea Loader
Director: Strategic Communication

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