Unlocking the potential of cities

Estimated reading time: 5 minutes

Local governments in South Africa need to start thinking about leveraging sustainability principles in the development of smart cities. Municipalities, metropolitan and secondary municipalities can address most of their current challenges by aligning urban regeneration with sustainability principles and preserve the social fabric and cultural heritage while contributing to building resilience and economic growth. Given that half of the people live in urban centers, and with this number rising, by 2050 almost 70% of the world’s population will be living in cities.

In line with the National Development Plan (NDP), there is a clear emphasis on the imperative task of building a sustainable and resilient South Africa. Recognising the multitude of challenges posed by climate change, the NDP aims to fortify the resilience of our people and economy in the face of this crisis.[1] As such, it becomes crucial for South African cities to harness the potential of cutting-edge technologies and information communication technology (ICT)  associated with smart city development, including the Internet of Things (IoT), cloud systems, communication networks, data analytics, and robust data frameworks.

However, it is essential that this pursuit of technological advancement is intricately woven with a steadfast commitment to sustainability and an integrated governance network that safeguards the well-being of our cities' residents amidst the climate crisis.

Looking back at the developmental practices of the 20th century, where cities were primarily driven by fossil fuel-based industrialisation, it becomes evident that the repercussions of such an approach are resulting in the far-reaching impacts of climate change. This is causing disruptions in the normal functioning of societies, leaving cities grappling with economic losses, loss of human lives, and crumbling infrastructure.[2] To chart a new path forward, the construction of sustainable smart cities demands a delicate balance. It necessitates a strategic focus on sustainability, encompassing the restoration of housing stock, the alleviation of inequality and poverty, and the preservation of our social fabric.

By aligning our business strategies with the principles of the NDP and embracing the possibilities offered by smart city technologies, we can pave the way for a resilient future. This requires an initiative-taking approach in driving sustainable development, harnessing innovation, and establishing robust governance mechanisms that foster inclusive growth and safeguard our cities from the perils of climate change.

Why municipalities must start thinking about sustainability

It is important to acknowledge that businesses do not willingly undertake processes that entail significant costs to their operations. The adoption of sustainability principles by businesses has been driven by the requirements imposed by investment funds, such as banks, which condition their investments on the application of sustainability principles. Consequently, businesses have started reimagining their supply chains and enterprise development, and require subcontractors to align with these principles. A similar approach must be embraced by the government, extending down to the municipalities, as this will serve as a catalyst for building resilient cities.

The integration of sustainability principles can effectively advance smart city projects by compelling municipalities and their workers to adhere to sustainability methodologies that prioritise sustainability, transparent governance (ESG), and stakeholder engagement. By incorporating sustainability principles into the development of smart cities, municipalities can address the concerns of diverse stakeholders, including investors, society, donors, and employees. Sustainability principles play a significant role in enhancing infrastructure, optimising construction efficiencies, and making buildings more energy-efficient, particularly considering the persistent challenge of load shedding

The benefits of adopting sustainability principles to municipalities

The adoption of sustainability principles can effectively address objections and facilitate the successful implementation of innovative technologies and transformative changes in cities. By engaging stakeholders through Integrated Development Plan (IDP) processes and implementing IDP strategies, municipalities can proactively address concerns and build trust in the project. A key approach is involving communities and workers in the design and implementation of innovative technologies, which helps reduce resistance to transformation, encourages the adoption of innovative solutions, and fosters participatory democracy – all of which serve as catalysts for building the cities of the future.

Implementing a sustainability-based strategy provides additional benefits by ensuring that plans and programmes align with the increasing demand for sustainability compliance from investors and banks. Given the financial challenges faced by most municipalities, with total municipal borrowings reaching R68bn in March 2021, of which 28% consists of bonds (such as retirement funds),[3] a sustainability-based strategy becomes instrumental in attracting investment and securing financing avenues for smart cities. Moreover, it contributes to the revitalisation of deteriorating cities, particularly secondary cities, by restoring commercial spaces and aligning tourism development efforts.