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The world is facing rapid and continuous urbanisation due to economic opportunities being concentrated in urban areas. In 2014, the United Nations (UN) estimated that the global urban population would grow 1.28 times between 2015 and 2030 (United Nations, 2014). South Africa, as with the rest of the world has seen the urban population increasing from 61.7% in 2009 to 66.9% in 2017. Rapid and continuous urbanisation is associated with many socio-economic problems. These are mainly poverty,  income inequality, and increasing youth unemployment in developing countries including South Africa. 

In response to South African socio-economic problems, the National Development Plan 2030 (NDP) was created. The NDP seeks to achieve reduced poverty and inequality by the year 2030  through transforming the economy (National Planning Commission, 2013). On the 25th of September 2015, global leaders along with the UN set and committed to 17 sustainable development goals (SDG), which were revised from the millennium development goals,  also with a vision to eradicate poverty by 2030 (United Nations, 2015). The NDP and SDGs are the main policies informing the integrated development plan (IDP) through which the problem of rapid urbanisation and unemployment are being addressed. 

The fourth industrial revolution (4IR) has changed world economies through the use of newer information-based technologies and practices such as the internet of things (IoT), information and communication technology (ICT), artificial intelligence (AI), and big data analytics.  

4IR technologies have changed how social issues are addressed by governments globally, owing to the internet and the internet of things. Many municipalities in first-world countries have used 4IR technology to improve their cities and surrounding areas in response to rapid urbanisation by developing new city management and governing models. Such cities are known as smart cities. 

Arguments have emerged that in addition to problems arising from rapid urbanisation, technological developments have added to societal problems. The digital divide is also eminent. Only 37% of South African households had access to consistent internet while around only 10% of households have computers at home. Further, South Africa has one of the most expensive mobile data prices in the world, at $4.30 per 1GB of mobile data compared to less than $1 per 1GB of data amongst most BRICS countries.  These numbers show that it would be difficult for most individuals to access digital services to participate in city governance in a poverty-stricken country.  

Infrastructure is another issue that prevents access to digital services. There are concerns, therefore, that the adoption of smart city solutions in developing countries such as South Africa will amplify the effects of social exclusion on vulnerable communities, more so the poor people in peripheral urban area. The National Planning Commission (2013) also recognises that improving digital connectivity to improve lives also increases inequality in terms of financial and technical ability to participate in the new era, worsening poverty lines and unemployment rates. 

Although technological transformations are associated with magnifying societal problems through the digital divide, they also present new opportunities. International organisations are in support of using technology for the betterment of mankind through smart cities. In 2019, the World Economic Forum (WEF) set up a forum with over 200 000 cities, local governments, and other stakeholders, G20 Global Smart Cities Alliance on Technology Governance (G20). The purpose of the G20 forum is to understand the need and therefore create an evolving ecosystem that focuses on technology solutions for city governing (World Economic Forum, 2019). Non-private organisations such as the UN have also set up smart city initiatives that are compatible with SDGs in partnership with the International Telecommunication Union (ITU). As with the WEF, the UN and ITU partnership were meant to create a global ecosystem where sustainable smart cities are developed and provide key performance indicators (KPI) to measure the sustainability of the smart cities.

In the South African smart city context, three SDG goals are especially important: SDG 1 which aims to end poverty in all its forms,  SDG 4 which aims to ensure equitable quality education and promote lifelong learning and opportunities, as well as SDG 11 which aims to make cities and human settlements inclusive, safe, resilient, and sustainable (United Nations, 2015). The priorities to support the economic transformation set out by the NDP include citizen participation and improving the skills and capabilities of the citizens (National Planning Commission, 2013). The common theme of these SDGs and NDP priorities is the inclusivity required to make sure that marginalised groups of people do not continue to be excluded in the new digital era while governments are digitising their city services. It is therefore important for South African local government to upskill, reskill and empower citizens in an attempt to reduce unemployment within smart cities. 

Differentiating between smart cities and e-government 

The purpose of e-government was to improve service delivery by focusing on the automation of internal processes and administration through the use of ICTs. In contrast, smart cities are more concerned with using technology to solve social problems. Thus, the idea of smart cities emerged from the e-government concept, which was the first to be used in response to fulfilling municipal services in the technological era. 

Smart cities and smart city framework 

Giffinger & Gundrun  developed a framework highlighting six main elements that are required for a smart city. These are “smart economy”, “smart people”, “smart governance”, “smart mobility”, “smart living”, and “smart environment”. Every other adaptation by global researchers and institutions is rooted in this framework. The South African cities network (SACN) also adapted the framework by Giffinger & Gundrun (2010) in defining and ranking South African smart cities to remain consistent with the global community while taking into consideration the objectives of the NDP. 

ICT solutions are the enablers for each element in a successful smart city. A brief description of these elements is provided below: 

1. Smart economy – the city’s competitiveness in terms of economic activity, entrepreneurship, and productivity, which are required to attract investment.  

2. Smart people – the social and human capital where lifelong learning is imperative. Citizens of smart cities are considered highly educated and knowledgeable. 

3. Smart governance – citizen participation in the decision-making process for better administration and service delivery. 

4. Smart mobility – Accessibility of information and safe transportation systems are the main measures of smart mobility.  

5. Smart living – the quality of life where the living conditions of citizens including cultural diversity, healthcare, and housing are of concern.  

6. Smart environment – the natural resources and general attractiveness of the natural environment. A city’s cleanliness and pollution levels are assessed as factors in this element.