This archive report was first published on 26 June 2020.
As the world becomes increasingly digital, the demand for smart technology is on the rise. However, the US government's recent restrictions on the use of US technology are set to bring about significant changes to the supply chain for technology products.
Under the new restrictions, US companies and their affiliates worldwide, particularly in the EU, UK, Korea, and Japan, will face challenges in re-supplying certain entities with products and software containing US components. This decision will have a wide-reaching impact on products in development and those already in consumers' hands.
While the restrictions are justified as a security measure, some argue that they are geared towards slowing down the pace of technological development by countries or companies seen as competitors. This is particularly concerning for companies with proven track records in operating in over 170 countries for over 30 years.
One such company is poised to become a leader in emerging technologies like cloud and AI, with the current restrictions potentially hindering its progress. The decision will have adverse impacts on the technology supply chain, particularly for African countries like Ethiopia, Kenya, and Rwanda, which are working towards becoming technology manufacturing powerhouses.
These countries would greatly benefit from technology sharing and the promise of tremendous growth in the technology sector, especially in job creation. However, the current restrictions will likely have an impact on the partnerships they need to form to facilitate their dive into technology production.
By attempting to control who can use what technology and who can work with which partners, the US government is going against the principles of an open ecosystem, which is likely to slow down the whole innovation ecosystem. This could lead to the splitting of the innovation space, with two or more centers of innovation emerging with independent products that have no intention of inter-operating with each other.
The result will be a loss of consumer choice, increased costs, and a less secure internet. It is essential to ensure that trade barriers do not hamper technological advancements, particularly in these uncertain times. The COVID-19 pandemic has proven that technology will continue to play a critical role in our development, and we need to lower costs and accelerate technology deployment in Africa.
By John Walubengo, lecturer and member of the National Taskforce on Block chain and Artificial Intelligence, published on June 26, 2020.
