What capacities and legitimacy can the state use to support South Africa’s digital economy?

Abstract

There is renewed interest among researchers and policy actors in more direct state involvement in the digital economy, with governments actively seeking to shape and co-create markets around emerging technologies and industries. However, one of the key questions is if the state has the necessary capacities and legitimacy to intervene more directly, whether through competition, industrial or other policy instruments. Focusing on South Africa, this chapter explores the mix of organisational and individual capacities and legitimacies that are available in the public sector to design appropriate policies and to achieve envisaged policy goals. From an analysis of four policy sub-systems – including data and algorithms, demand-side instruments for technology start-ups, digital governance coordination, and African integration – a diverse mix of traditional but also less visible actors, capacities and legitimacies emerges that could contribute significant expertise and resources to the realisation of digital economy goals.