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Africa prepares for quantum leap

IBM and Wits University have partnered to enable the expansion of quantum computing in Africa.

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Now for a computer that gets 200 times colder than outer space. 

In June, IBM announced the expansion of its quantum computing efforts to Africa, via a new collaboration with the University of the Witwatersrand (Wits University) in South Africa. Wits is the first African academic partner in the IBM Q Network and will be the gateway for academic collaboration across South Africa, and to the other 15 universities that are part of the African Research Universities Alliance (ARUA).

This week, at Wits University’s Tshimologong Digital Innovation Precinct in Johannesburg, IBM physics researcher Dr. Heike Riel demonstrated how the latest in quantum computing manages to cool its processor down to around 15 millikelvin, or -273.135°C. 

“The interior of the quantum computer allows the exponential power to do things that classical computers can’t,” she said. “They perform computations very differently to what we’re used to. They are using qubits, and quantum bit processors, and they are housed at the bottom of the machine.

“Another important part of this system is the cryostat, which is the cooling system. All the shiny metal components are needed to cool down the processor so the processor can do the calculations. On the top layer, it cools down form 300K, which is room temperature, to about 40K. At this point, nitrogen is already liquid. On the second layer, it’s cooled to about 4K, where helium becomes liquid. Then it goes down to 800 millikelvin, then to 25 to 15 millikelvin in its final stage.

“In order to use the laws of physics in this kind of a system, you have to avoid noise. This why we cool it down to this level. The information is very fragile in this processor, and without the cooling, the quantum information will get lost. Apart from the machine that’s here, there is also another machine that interfaces with this machine to control it. That’s how it works”

Quantum computing should help to solve certain problems – such as chemical simulations and types of optimisation – that are beyond the practical reach of classical machines. IBM first made quantum computers available to the public in May 2016 through its IBM Q Experience quantum cloud service. It has doubled the power of its quantum computers annually since 2017.

Professor Zeblon Vilakazi, Wits Deputy Vice-Chancellor: Research and Postgraduate Affairs, said: “This is the latest outcome of the joint partnership between IBM Research and Wits, which started in 2016 when IBM opened its second lab in Africa in Wits University’s Tshimologong Digital Innovation Precinct. To expand the IBM Q Network to include Wits will drive innovation in frontier-technologies and benefit African-based researchers, academics and students who now have access to decades of quantum computing capabilities at the click of a button.” 

It is anticipated that researchers at Wits will investigate the use of quantum computing and machine learning in the fields of molecular biology, with a specific focus on HIV drug discovery and cosmology. The teams will also jointly study quantum teleportation with IBM, a field pioneered by IBM Fellow Charles Bennett.

“For Africa to remain competitive for the coming decades we must get the next generation of students quantum ready,” said Dr. Solomon Assefa, VP of Emerging Market Solutions and Director, IBM Research – Africa.  

IBM’s recently unveiled IBM Q System One is the world’s first integrated universal approximate quantum computing system designed for scientific and commercial use. IBM’s most advanced universal quantum computing systems are available through the premium IBM Q Experience platform.

Prof. Vilakazi said: “Having access to IBM Q is pivotal for Wits University’s cross-disciplinary research program and allows our researchers in quantum computing, artificial intelligence, and in the broad natural sciences, including in laser technology, quantum optics and molecular design, to leverage the next level of discovery research. It’s envisioned that the first results from this collaboration will be forthcoming in the next two years.”

More than 10 million experiments have run on the public IBM Q Experience and users have published over 160 third-party research papers. Developers can work with Qiskit, a full-stack, open-source quantum software development kit, to create and run quantum computing programs.

To further increase skills development, IBM Q is hosting an invite-only Qiskit Camp in South Africa this December for 200 quantum researchers and computer scientists where they will learn in an immersive environment and receive hands-on training.

As part of the partnership between IBM and Wits, scholars from the other fifteen ARUA universities including: Addis Ababa University; University of Ghana; University of Nairobi; University of Lagos; University of Ibadan; Obafemi Awolowo University lle-Ife; University of Rwanda; University Cheikh Anta Diop; University of Cape Town; University of Kwa-Zulu Natal; University of Pretoria; Rhodes University; University of Stellenbosch; University of Dar es Salaam and Makerere University, will have the opportunity to apply for access to IBM Q’s most-advanced quantum computing systems and software for teaching quantum information science and exploring early applications. To gain access to the IBM Q quantum cloud service, ARUA scholars will be required to submit quality research proposals to a scientific committee of Wits and IBM experts for approval. 

For more information about the IBM Q Network, as well as a full list of all partners, members, and hubs, visit https://www.research.ibm.com/ibm-q/network/

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Businesses struggle to pay up

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The Experian Business Debt Index (BDI), which reflects the relative ability for business to pay their outstanding suppliers and creditors, reveals deteriorating business debt conditions in South Africa.

The Index, a reflection of the overall health of businesses in the economy, improved marginally in Q2 compared with Q1, to -0.388 from -0.419, but still reflects tough times for businesses: when historical revisions are included, the Q1 BDI reflects the weakest business debt conditions since the global financial recession in 2009. 

Despite the small improvement in Q2 2019, these readings still reflect a significant worsening of the financial position of companies in South Africa in relation to conditions which had prevailed in recent years.

 Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019
Index>0=  Improving business conditions<0 = Deteriorating business conditions-0.018*0.228*-0.099*-0.419*-0.388
  • Revised

“The impact of poor domestic economic conditions on the financial state of companies has been further exacerbated by growing signs of a slowdown in the global economy as well,” said Thabo Hermanus, chief operating officer at Experian South Africa.

GDP lower than expected as a result of load-shedding

In the wake of the historical revisions, the BDI has fallen into significantly negative territory in Q1 and Q2 2019. The main deterioration of inputs relates to South African Q1 GDP.  The Q1 GDP quarter-on-quarter annualised growth rate of -3.2% turned out to be considerably worse than all consensus forecasts. Expectations of stronger GDP growth in Q2 2019 (based on early high frequency data) contributed to an improved BDI in the latest release.

The relative improvement in the Q2 BDI was however slightly hampered by US GDP which fell back in Q2 to 2.1% on a quarter-on-quarter annualised basis from 3.1% in Q1. Additionally, the differential between the producer price index (PPI) and the consumer price index (CPI) inflation rates increased in Q2, suggesting a squeeze on corporate profit margins. Long-term interest rates also fell quite sharply relative to short-term interest rates, indicative of an increasingly gloomy view of longer-term economic growth conditions.

Debt age ratio

The outstanding debtors’ days in the 30:60 days ratio increased to 33.49% in Q2 from 29.03% in Q1. The deterioration in the 60:90 day ratio was less marked, rising to 11.76% in Q2 from 11.33% in Q1.

While the overall number of outstanding debtors’ days improved slightly from 56.7 to 54.6 in Q2 2019, the age profile of these debtors’ days worsened, with the ratio of outstanding debt owed of 30 to 60 days relative to that owed of less than 30 days increased further to 33.49% in Q2 from 29.03% in Q1.

Hermanus says, “It is apparent that the cumulative effect of weak economic activity extending over several years now, with economic growth less than 1.5% per annum in each of the past four years, has finally begun to compel businesses to hold back from meeting their debt commitments for as long as possible in order to survive.”

Agriculture improves, but construction, mining and transport deteriorates significantly

Analysis of the BDI by sector displays considerable variance from sector to sector. The most dramatic improvement was recorded in Q2 by the agriculture sector, in line with a normalisation of domestic agricultural conditions following the severe droughts in the north-eastern regions in 2015/16 and that of the Western Cape in 2017/18.  The BDI for agriculture shot up from a heavily negative -0.456 in Q1, to a positive 0.236 in Q2. 

On the other hand, severe deterioration in conditions was reported in the construction sector, where the BDI fell from an already significantly negative -0.381 in Q1, to -1.280 in Q2. There was also a significant further deterioration in business debt conditions in mining and transport, with both sectors affected negatively by industrial action. 

Small Businesses are battling to survive

Whilst the overall debt situation amongst businesses might not have been favourable in the first half of 2019, that of SMEs posted a significant further deterioration. Whereas the total number of outstanding debtors’ days decreased slightly in Q2, to 54.6, from 56.7 in Q1, it worsened in the case of small businesses with SME outstanding debtors’ days rising to a record 66.4 in Q2, from 65.5 in Q1 and levels of below 60 a year ago.

“SMEs are struggling to sustain cash flows with which to survive in the face of tardiness on the part of their bigger counterparts to pay them for work done. It would seem that the brunt of the impact of the weakness of domestic economic conditions has been borne by small businesses, with many of these being forced to close down after struggling to remain in operation for as long as possible,” said Hermanus.

Looking forward

The slump in economic conditions in South Africa experienced since 2014 represents the longest sustained period of economic weakness in almost a century.  Per capita GDP growth will have been negative on average for four consecutive years.

“Although the slump in economic growth has not taken the economy into a deep recession, it has been sufficient in its duration to impact the ability of businesses, especially smaller ones, to survive,” says Hermanus. 

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WEF must focus on 4IR’s positive impact on jobs

By PIETER BENSCH, Executive Vice-President at Sage MEA

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As the 28th World Economic Forum (WEF) on Africa convenes in Cape Town from 4-6 September, it offers an opportunity to consider ways to accelerate economic growth across the continent. With the Fourth Industrial Revolution (4IR) sweeping across the world, one pressing concern is to evaluate how to harness digital technology to boost prosperity and employment across Africa.

The 4IR will catalyse greater automation, higher productivity and lower costs across industries, driven by the advent of the Internet of Things, cloud computing, advanced robotics, intelligent software, artificial intelligence (AI), distributed ledgers, 3D printing, virtual and augmented reality, and a range of other technologies.

While much of the discussion at WEF on Africa will inevitably focus on the dangers of losing employment to automation, we also should not lose sight of the opportunities the 4IR will create for entrepreneurs and digital workers in Africa. Innovations such as AI, robotics, the cloud and 3D printing will enable small and larger businesses alike to streamline processes and get better visibility into their performance.

Reclaiming time lost to admin

One of the spin-offs will be to use automation to reclaim the time, energy and resources we lose to routine administration and other tedious tasks. According to the Sage We Power the Nation Productivity Tracker, South Africa alone loses some R7.2 billion a year to unnecessary admin – and in addition to this direct cost, there is the loss of precious time that could be spent on innovation, problem solving, strategy  and relationships.

Imagine the economic value we could unlock by redirecting human ingenuity and effort to creative and human tasks that add value.

Imagine the might of a digitally augmented African workforce empowered with the tools and data it needs to be globally competitive and hyper-productive.

Imagine small African businesses harnessing the cloud and AI to drive growth and innovation.

It is within our power to seize these opportunities, but it will take a serious coordinated response from the public, private and non-governmental sectors. The challenges are significant, from building the energy and telecoms infrastructure Africa needs as a foundation for the new generation of digital technologies, to retooling educational systems to produce a digitally-ready workforce.

Leapfrogging legacy 

Each African business will need to invest in technology, innovation and people to keep pace with the changing world. Companies of all sizes need to take a strategic view on how the next technology revolution will change supply chains, the workforce and the customer base. Some will face disruption, but others will uncover massive opportunities.

Government and big business should also ask how they can help smaller businesses to boost productivity through reducing procurement paperwork, paying them on time, and subsidising new technologies. The full value of the 4IR will be unlocked when society in its entirety transitions to a digital business model – with no one marooned in an analogue world.

We are only at the start of the massive transformation that digital technology will bring to Africa.  But with its young, digital-savvy population and its opportunity to leapfrog old tech in favour of new-age solutions like renewable energy and the cloud, the 4IR is the opportunity of a generation for Africa.

I have a strong belief in this continent and what it can offer to the rest of the world as it seizes on this opportunity. 

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