Inclusion of Women in Technology for South Africa’s Economic Growth

This past International Women’s Month, we celebrated the progress made in advancing women in technology to take up space in the areas previously barred by gender biases. Undeniably, we still have a long way to go to see the true demographic reflection across industries. The representation of women in technology remains minimal; for every woman working in this field, there are at least three men. Globally, women account for about 33% of general roles, with even fewer taking on leadership positions. The unpleasant truth that is not unique to the technology field is that 80% of CEOs are men, with a woman making 80 cents per dollar earned by a man. More so, women start 40% of businesses in the US but only get 2% of venture capital.

Technology Accelerates Economic Growth

In the last decade, economic growth averaged just one percent, while per capita income has contracted, resulting in South Africans being poorer and having limited employment opportunities. Technology plays a significant role in accelerating economic activity if its high innovation potential and improving productive systems is fully leveraged across sectors. Technology provides an economy with the tools to innovate, facilitate communication, improve efficiencies for global trade, and enhance streamlining processes.

South Africa desperately needs growth, human progress, and improved livelihoods. We must consider increasing investment and spending on technology, innovation, and science for sustainable economic growth. In 2022, the ICT sector was valued at R547 billion and expected to grow at a Compound Annual Growth Rate (CAGR) of 8.2% in the next three years, according to Global Data. Comparatively, in other emerging markets and developing economies, the ICT sector accounts for more than double the market size in South Africa. For example, in Brazil, the ICT sector was valued at R1.3 trillion in 2022, with a CAGR projected at 18.6% over the medium term. Similarly, India and China have a market size worth R2.3 trillion and R8.9 trillion, respectively, with CAGRs of 18.85% and 12.13%. A larger market size in ICT can enable economic growth through its vast reach of technologies such as high-speed internet, online business and financial systems, robotic machinery, and sensory technology.

#InspireInclusion of Women in STEM

Despite women being equally interested in technology, their engagement in this field differs from that of men. Globally, women’s employment in the Science, Technology, Engineering, and Mathematics (STEM) fields presents a notable gap, particularly with the advent of climate tech, artificial intelligence (AI), and other emerging technologies. According to the Global Gender Gap Report (2023), women comprise only 29.2% of the STEM workforce in the 146 nations evaluated, compared to nearly 50% of non-STEM occupations. Despite a 1.58% increase in STEM female workers between 2015 and 2023, a troubling gender imbalance remains. Women face challenges when pursuing STEM leadership roles, with only 12.4% in C-suite roles. A recent study by The Prospectory indicates that women prefer to use technology to enhance their experience and utility beyond technical capability, thus enabling them to interact differently with the material or social world. Meanwhile, men are more inclined to gravitate towards operational features and technical capability.

When it comes to new technological innovations and developments, inclusion is paramount. Karim Ginena, founder of RAI Audit, found that AI generators consistently favour images of white males, exacerbating gender and racial biases. Diversifying AI development is critical to mitigate bias in algorithms shaping societal facets. Without inclusive teams, products risk failure and perpetuating inequalities. Addressing diversity now is paramount to prevent future challenges in rectifying biases entrenched in technological innovations, which could otherwise fail to serve their true market.

Benefits of Inclusion

The inclusion of women in STEM fields is crucial for South Africa’s and the world’s economic success. A McKinsey study shows that closing the gender gap in labour force participation could boost global GDP by up to $28 trillion (about $86,000 per person in the US) by 2025. Companies with greater gender diversity are 25% more likely to outperform their counterparts financially. Despite these positive outcomes, three factors contribute to the disparity. Firstly, women lack confidence in business and technical skills, limiting their presence in technical roles and senior leadership. Secondly, pre-existing biases persist in hiring and promotion consideration processes within the STEM fields. Lastly, STEM environments are often perceived as unwelcoming to women due to the emphasis on technical proficiency and the perception of limited time for family focus. Addressing these issues requires concerted efforts to build confidence, tackle biases, and create inclusive environments to encourage more women to pursue careers in technology, ultimately benefiting both companies and the broader economy.

Conclusion

We need technology for economic growth, communication, work, entertainment, and health management. Yet, in all these activities, one must ponder the role of women in bringing these technologies to life. STEM continues to advance and integrate into every aspect of our lives, and the participation of women in this field remains a critical issue. Addressing the lack of confidence, biases, and unwelcoming perceptions in STEM are steps towards creating a more inclusive and diverse industry. By fostering an environment that values mentorship, continuous learning, and the unique qualities that women bring to the table, we can ensure that women not only consume offerings from companies in the STEM field but also play a significant role in its creation and leadership for the betterment of South Africa’s economy.