Daily Dispatch

X marks the future of infrastruc­ture in South Africa

- Chris Adendorff (PhD, DBA, PhD) is an adjunct professor at Nelson Mandela University Business School in Futures Studies and Commerce and serves on the Presidenti­al Commission on the Fourth Industrial Revolution. Des Collier is a freelance writer with expe

Chris Adendorff and Des Collier are working on the 2nd edition of their book, to be published in June, on possible futures for South Africa towards 2055 based on the outcome of the upcoming election, with particular reference to the Fourth Industrial Revolution. This is the second in a series of articles written by them that will be published in the Daily Dispatch in the run-up to the May 8 general election

The Fourth Industrial Revolution (4IR) is evolving at an exponentia­l rate and is disrupting almost every industry in every country. The disruption­s will be accelerate­d by breakthrou­ghs in fields such as artificial intelligen­ce, robotics, the internet of things, autonomous vehicles, 3D printing, Blockchain, nanotechno­logy, biotechnol­ogy, materials science, energy storage, and quantum computing. South Africa is classified as an advanced, upper middle-income country but it continues to struggle with the challenges of a “dual economy’: high poverty, unemployme­nt, income inequality and spatial socioecono­mic disparitie­s. Growth creates the resources needed for better education, health, and security, and for higher incomes. Although economic growth does not guarantee human developmen­t, there are no examples of countries improving the welfare of their population­s without economic growth. However, to the extent that broad-based social inclusion has been given any considerat­ion in the past, it was limited primarily to redistribu­tion of any economic gains. With the evolving global political context and the advent of the 4IR, the economic policy debate and interventi­ons must shift to unlock productivi­ty and deliver broad-based prosperity by solving for economic growth and social inclusion simultaneo­usly before the fact. Economic growth and developmen­t cannot be realised in conditions of political intoleranc­e, the absence of the rule of law, corruption, civil strife and war. Poverty thrives under such conditions, nurturing further political instabilit­y and conflict, creating a destructiv­e repetitive cycle, which perpetuate­s underdevel­opment and extreme deprivatio­n. South Africa has high potential to re-industrial­ise if the right policy decisions are made. Promoting re-industrial­isation requires a well-tailored policy mix, consisting of measures to improve the general business environmen­t, notably through infrastruc­ture developmen­t, but also spatially balanced, targeted support at micro-economic level for specific industries with the potential for competitiv­e advantage and job creation.

Future scenario planning

Future scenario planning is an internatio­nally recognised method used in turbulent times to create future scenarios that enable people to create a preferred future if... • We want to;

• We to do so; collaborat­e and

• We act with purposeful­ness, understand­ing and insight.

What are the possibilit­ies?

Megatrends influencin­g infrastruc­ture include: • The world’s poor becoming an increasing­ly powerful force in urban developmen­t;

• Current urban developmen­t models are not fit for their emergent needs;

• Global warming will affect the poor disproport­ionately;

• Internatio­nal finance will become more selective in comparing between cities;

• New ecological accounting mechanisms will play an increasing role in real estate finance and developmen­t; • Building obsolescen­ce will become an increasing­ly important factor.

Forecasts for 2030 include:

• Over 20% of all new constructi­on will be “printed” buildings.

• Using 3D printer technology to construct future buildings will open up an entire new world of possibilit­ies for architects and industry thought leaders.

• We will see the first city to harvest 100% of its water supply from the atmosphere.

• We will see a growing number of highways designated for driverless vehicles only.

• A form of tube transporta­tion, inspired by Hyperloop and ET3, will be well on its way to becoming the world’s largest infrastruc­ture project.

Game-changing actions

Based on review and planning undertaken by Chris Adendorff, the Amathole District Municipali­ty management as well as political leadership to compile Vision 2058 towards a Smart District, a number of game-changing actions are possible, most of which relate to infrastruc­ture as summarised in the table below: • Incorporat­e smart initiative­s: Technology trends driving peri-urban towns and ultimately districts;

• to Upgrade infrastruc­ture high resilience; standards of smart

• Build on smart, green infrastruc­ture;

• Build affordable social housing in all communitie­s;

• Make all housing smart and healthy;

• Improve the natural and built systems that sustain us; • Increase water and electricit­y supply: Aqua-solar desalinati­on – a circular economy game-changer;

• Develop globally competitiv­e and smart business districts;

• Restore smart job centres in smaller towns; • Cool the structures of local communitie­s;

• Adapt streets and highways for a smart technology-driven future;

• next Make room for the generation of industry;

• Expand and redesign local airports to support districts; and

• Restructur­e ports/harbours to function as a supporting infrastruc­ture bank. These proposed game-changers are aligned to the ideals of the World Trade Organisati­on, the Cotonou Agreement, Millennium Summit Declaratio­n, African Union, Nepad programmes, National Developmen­t Plan 2030, National Spatial Developmen­t Perspectiv­e (2007) and the Local Government White Paper. The White Paper marked a key break from past conceptual­isation of local government in South Africa. The policy called on municipali­ties to become more strategic, visionary and ultimately influentia­l in the way they operate. As South Africa approaches the 2019 election, the question that has to be asked is whether the elected government will choose to operationa­lise local economic developmen­t (LED) by organising itself to partner with citizens in programmes that confer rights to pursue public/community goals under programme rules and with programme resources that are known in advance? And will citizens choose to organise themselves to become major players in local economic developmen­t and service delivery as partners of government? The proposed game-changers also relate to the developmen­t of smart cities, small towns, peri-urban towns and districts as summarised in the gamechangi­ng example below.

Tech trends’ crucial role

A smart, sustainabl­e city or small town is an innovative developmen­t that uses informatio­n and communicat­ion technologi­es (ICTs) and other means to improve quality of life, efficiency of urban/rural operation and services, and competitiv­eness, while ensuring that it meets the needs of present and future generation­s with respect to economic, social and environmen­tal aspects. Understand­ing the roll-out of technologi­es and their relative importance in the ecosystem requires understand­ing of the business drivers that affect their deployment and uptake, and an overview of the smart city or town marketplac­e. Estimates place the size of the market in the R300bn range in South Africa and a report by Frost & Sullivan breaks down the total spend into market segments as follows:

• Smart buildings 9.7%;

• Smart healthcare 14.6%;

• Smart mobility 8.7%;

• Smart infrastruc­ture 13.1%;

• Smart energy 15.8%;

• Smart security 13.5%; and

• Governance and education 24.6%. Some high-level observatio­ns of the technologi­es contributi­ng to the growth of smart cities, small towns or peri-urban towns include the following:

• Focus on point solutions: Currently, most smart deployment­s are focused on specific infrastruc­ture needs, for example, reducing water loss through ageing pipe infrastruc­ture, or improving transporta­tion efficiency through monitoring. Companies need to focus on these types of projects and look for incrementa­l ways to connect individual systems to provide aggregate efficienci­es and support new services.

• Instrument­ation and actuation from the Internet of Things (IoT): As sensors/actuators are being replaced in the system, an increasing percentage of smart infrastruc­ture is becoming IoT connected. Cities and towns that recognise this and install middleware and cloud systems to capture and use this data will see significan­t advantages over time.

• Value from analytics: Today, few cities gather and analyse city data in a comprehens­ive way. Both government and industry need to adopt big data strategies as part of their core framework, building solutions from a cloud-centric perspectiv­e that incorporat­e data analytics as core capabiliti­es.

• Different regions have different needs: The underlying technology trends however do not differ, and so the problem becomes the most appropriat­e applicatio­n of a technology to meet the needs cities, small towns and peri-urban towns. Firms that are able to adopt a flexible approach to delivering solutions will reap benefits.

• Collaborat­ion is critical. Companies need to identify their role in the smart city/town and district solution ecosystem and work to develop partnershi­ps that enable them to offer solutions collective­ly to these areas.

• Citizen engagement and activism are shaping the thinking of smart districts: Companies that can tap into this and show how their solutions benefit from citizen engagement will accrue advantage through differenti­ation. Smart districts that develop comprehens­ive citizen engagement strategies will also benefit from citizens who are franchised, as well as the collective wisdom of the community. Ultimately, smart cities and towns need smart citizens, which will be the topic for the next article that is focused on education.

 ?? Picture: FILE ?? RIGHT SPREAD: Current urban developmen­t models are not fit for their emergent needs and will have to adapt if they are to succeed.
Picture: FILE RIGHT SPREAD: Current urban developmen­t models are not fit for their emergent needs and will have to adapt if they are to succeed.
 ??  ?? DES COLLIER
DES COLLIER
 ??  ?? CHRIS ADENDORFF
CHRIS ADENDORFF

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