With CIT heists increasing, perhaps it is time to move into the digital economy Photo Pexels
South Africa – Since January there have been more than 250 Cash -in- Transit (CIT) robberies. A 30% increase from what was recorded during the same period in 2022. In 2023, 16 Fidelity guards were killed and a further 50 guards were injured in CIT heists. The solution, according to Gauteng Premier Panyaza Lesufi, is moving towards a cashless economy.
Juliet Siwela, Corporate, Commercial, Tax Attorney, Notary Public and Law Lecturer, agrees with Lesufi and believes South Africans should embrace a digital economy. During the Covid-19 lockdown, South African consumers enjoyed the convenience and benefits of going digital. However, South Africa faces a digital divide in order to accomplish a cashless economy.
“The South African society, as it is today and as it stands, is basically divided into digital haves and digital have not. That means connectivity for some consumers in South Africa, they don’t have proper internet connectivity. Financial inclusion is another thing that could basically affect us into transitioning into a digital economy. That is something that we can actually use to decrease these cash-in-transit heists that have been taking place.”
Going cashless and online might be an issue for people as scammers have now developed online methods to try and steal your cash. However, Siwela believes with the advancement in Artificial Intelligence, the risk for businesses, peoples and banks can be significantly reduced.
“We have Artificial Intelligence developing and it can help us in fraud detection, analysing data much better, detecting anomalies and monitoring transactions in real time. The relevant stakeholders need to come together and actually sit down and formulate laws. Laws have to be put in place in order to facilitate it. It will affect tax laws, competition laws, privacy and intellectual property laws.”
Existing legislations like the Protection of Personal Information Act (POPIA) provide a foundation, but continuous adaptation of laws is necessary. These adaptations as well as ensuring everyone is included in the transition in order for the cashless economy to be successful.
Adapting to technological advancements
As AI continues to advance, there is growing concern that it might replace medium-skilled jobs. Machines have already automated roles in mass production industries, such as canned goods and baked goods manufacturing. While these concerns are valid, it is crucial for governments to proactively implement innovative education and training initiatives. These programs are essential for equipping the workforce with the skills necessary for digital jobs, ensuring a smooth transition in the face of technological advancements.
“These robotics and technologies, they need people behind that. I believe that we can basically structure employment differently and come up with innovative ways to [stop] people from losing their jobs. I believe that the world is growing. Technology is growing at a fast pace so we need to be thinking on our feet and embracing skills that will allow us to embrace that. Government needs to make sure that the public has the skills and the knowledge to do that. The traditional way of employment, it’s really not working. Society needs to think differently.”
Siwela emphasised the need for countries in Africa, including South Africa, to learn from the successful transition of economies like the US and China into digital realms. It is also important to adapt global best practices to suit Africa’s unique economic landscape.
Embracing the digital economy is not merely a choice but a necessity for South Africa. However, it is a transition that will have to include everyone. The shift towards digital transactions, coupled with the intelligent implementation of AI technologies and the formulation of robust policies, can significantly reduce CIT heists and enhance overall financial security. If done right, it could open the country to a whole new range of employment opportunities and a safe way to do business.
