PROPOSAL FOR FREE WIFI AS GROWTH ENABLER TO
ASSIST LOCAL ECONOMIC DEVELOPMENT
AND TOURISM
Free WiFi For Africa NPC, trading as Project Isizwe
NPO Registration 133-371 NPO
156 DORP STREET, STELLENBOSCH, 7600, SOUTH AFRICA
TABLE OF CONTENTS
OVERVIEW ................................................................................................................ 3 THE DEVELOPMENTAL (LOCAL) GOVERNMENT CONTEXT AND TOURISM ..... 5 THE LEGAL AND POLICY CONTEXT ...................................................................... 6 LED MANDATE OF GOVERNMENT AND TOURISM ............................................... 7 HOW CAN THE THREE SPHERES OF GOVERNMENT CONTRIBUTE TO LED
AND TOURISM SECTORAL GROWTH? .................................................................. 8 HOW TO ADRESS THE LED MANDATE AND TOURISM AS A GROWTH
ENABLER? ................................................................................................................ 8 STRATEGIC GOALS OF THE DEPARTMENT OF TOURISM .................................. 9 THE BENEFITS OF CONNECTIVITY ........................................................................ 9 WHAT ROLE CAN FREE WIFI PLAY TO SUPPORT THE DEPARTMENT OF
TOURISM'S STRATEGIC GOALS?......................................................................... 10 2
OVERVIEW
The President stated in the 2015 State of the Nation address the importance of
connectivity as a growth enabler. In today’s fast-paced, digital world, the average
South African is at a disadvantage, due to a lack of access to the internet. There is
an enormous amount of services and information, accessible via the internet that
supports informal learning, social inclusion and economic development from which
they are excluded. Tourism is a well-documented growth enabler and LED vehicle.
Free Internet Zones (FIZ) offer a solution and support to address LED and Tourism
as growth enablers.
Free WiFi has become a minimum requirement in the hospitality industry. Hotels and
Bed and Breakfast establishments are now regularly required to offer Free WiFi in
order to secure bookings, resulting in SA following international norms in the
international tourism industry.
SA can boost its reputation as a preferred tourism destination by deploying Free
WiFi at key tourism sites, thereby attracting more visitors whilst raising the visibility
of such sites globally.
Each FIZ will offer a WiFi hotspot, covering open public spaces that will allow
learners and community members to simply connect and surf using any WiFienabled device. Access to the internet will bridge the digital divide, allow for 21st
Century blended learning, greatly improve communication and stimulate job creation,
supporting LED and Tourism outcomes.
3
The impact of this project has the potential to change the trajectory of South Africa’s
youth, building the leaders of tomorrow and encouraging them to become citizens of
the world, while at the same time growing the economy and establishing tourism as
a key to unlocking opportunities for our people. Keeping this in mind, it is critical to
consider the developmental local government premise of the Constitution as Tourism
features as a function that transcends the three spheres of government.
4
THE DEVELOPMENTAL (LOCAL) GOVERNMENT CONTEXT AND
TOURISM
1
The White Paper on Local Government, 1998, defines developmental local
government as:
"...government committed to working with citizens and groups within the community to
find sustainable ways to meet their social, economic and material needs and improve
the quality of their lives".
This new and broad mandate for local government is in line with the objectives for
local government set out in the Constitution (1996) (see below). According to the
White Paper in Local Government, it seeks to address the apartheid legacy which "has
fundamentally damaged the spatial, economic and social environments in which
people live, work, raise families and seek to fulfil their aspirations”. The previous local
government system led to an extremely uneven distribution of resources and distorted,
fragmented patterns of development. The eradication of these distortions and
imbalances and the poverty which flows from them is one of the greatest challenges
facing local government.
Developmental local government should adopt a strategic, creative and integrated
approach to local governance to address this challenge. It involves actively seeking
partnerships with all role-players that contribute to the development of an area including other organs of state, the private sector and communities - in order for
municipalities to fulfil their core responsibilities in a way that has a lasting and
profoundly positive impact on the quality of life of the people they serve. Tourism is a
universal example of such a partnership.
1
Democratic Local Government 2000 -‐ 2001: A Guide for Councillors, published by National Business Initiative, December 2000 5
THE LEGAL AND POLICY CONTEXT
1
The Constitution (S152) puts in place a vision for developmental local government
and contains the following objectives for developmental local government:
•
To provide a democratic and accountable government for local communities
•
To ensure the provision of services to communities in a sustainable manner
•
To promote social and economic development
•
To promote a safe and healthy environment
•
To encourage the involvement of communities and community organisations in the
matters of local government.
In terms of the Constitution, the White Paper and the legislation flowing from it,
municipalities are required to structure and manage their administration, budgeting
and planning processes to give priority to the basic needs of the community, to
promote the social and economic development of the community and to participate in
national and provincial development programmes. Tourism is unmistakably an
important tool in achieving LED.
According to the White Paper, true developmental local governance should ultimately
result in the following outcomes:
•
The provision of household infrastructure and services
•
The creation of liveable integrated cities, towns and rural areas
•
Local economic development
•
Community empowerment and redistribution.
Connectivity can help to address the developmental mandate of local government and
bring the Department of Tourism’s strategic goals in alignment with Constitutional
imperatives and National Government policy.
6
LED MANDATE OF GOVERNMENT AND TOURISM
Section 152(c) of the Constitution states that one of the primary objects of local
government is to promote social and economic development. According to the SALGA
LED handbook for Councillors, the National Planning Commission found the key
social, economic and political challenges facing South Africa:
1. Too few South Africans are employed-high unemployment contributes to
widespread poverty. Only 41% of South Africans between the ages of 18 and
60 work. International norms are closer to 66%.
2. Quality of education for poor black South Africans is low. School enrolment,
numeracy and literacy scores are extremely low compared to international
standards.
3. South Africa’s growth path is highly resource-intensive and hence
unsustainable.
4. Poorly located and inadequate infrastructure limits social inclusion and faster
economic growth.
5. Spatial challenges continue to marginalize the poor.
6. The ailing public health system is confronted by a massive disease burden.
7. The performance by public services is uneven.
8. Corruption undermines state legitimacy and service delivery.
9. South Africa remains a divided society.
According to the report (2014:9), the challenges of high unemployment and quality of
education are “the most pressing”. The role that Local Government can play in LED
and Tourism as an enabler will alleviate some of these challenges by creating a
climate of growth and opportunity.2
2 SALGA. 2014. SA LED Network.
7
HOW CAN THE THREE SPHERES OF GOVERNMENT CONTRIBUTE
TO LED AND TOURISM SECTORAL GROWTH?
1. Direct employment
2. Special employment schemes
3. Procurement of goods and services
4. Production of goods and services, such as electricity, education and
healthcare.
5. Financing employers outside the state to encourage increased or diversified
production.
6. Regulatory frameworks that encourage production and reduce red tape.
7. Creating a stable, equitable, law-abiding and mobilized society which is the
crucial framework for sustainable economic development (SALGA, 2014:10).3
HOW TO ADRESS THE LED MANDATE AND TOURISM AS A
GROWTH ENABLER?
The SALGA legal opinion on LED to the Cape Winelands DM states: “Given that the
purpose of local economic development (LED) can be expanded to include:
1. Creating an enabling environment which local people and institutions can make
realistic and practical decisions that strengthen the local economy, create more
jobs, promote new enterprise, including self-employment and to improve the
quality and prospects of life for all.
2. Building developmental local government engages more directly where
possible in creating jobs and building the economy.
3 SALGA. 2014. SA LED Network. 8
There can, as a result be little doubt that local economic development is a local
government function in keeping with the purposive interpretation of the Schedules and
the development character of local government under the new constitutional
dispensation” (SALGA,2014:21).4 LED and Tourism is therefore linked and one cannot
thrive without the other.
STRATEGIC GOALS OF THE DEPARTMENT OF TOURISM
The Department of Tourism has the following strategic goals which support LED and
can be satisfied via the deployment of Free WiFi networks:
1. Reach out to tourism stakeholders through targeted communication
2. Facilitate development of integrated support packages to enhance destination
competitiveness
3. Create employment opportunities targeted at the unemployed through the
EPWP
THE BENEFITS OF CONNECTIVITY
The benefits of the Internet are of greatest value to those living in rural areas, and yet
these same citizens suffer from the slowest speeds and highest prices.
4 SALGA. 2014. SA LED Network. 9
•
LED AND TOURISM PERSPECTIVE: The World Bank estimates that for every 10% of
broadband penetration, there is 1, 28% increase in GDP. Tourism is a critical enabler
for growth opportunities.
•
COMMUNITY PARTICIPATION: General access to information. Engaging with citizens
in rural areas in order to ascertain service delivery priorities and gain feedback on
governance is traditionally very difficult. Internet access allows for real-time
conversations and feedback via mobile phones. Opportunities in the Tourism industry
can now be exploited by making use of real time demands and responses.
The well-documented consequences of Internet access are as follows:
WHAT ROLE CAN FREE WIFI PLAY TO SUPPORT THE
DEPARTMENT OF TOURISM'S STRATEGIC GOALS?
1. Reach out to tourism stakeholders through targeted communication
Free WiFi allows for real-time feedback loops between local stakeholders and national
government.
2. Facilitate development of integrated support packages to enhance
destination competitiveness
Free WiFi deployments at key tourism sites such as Kruger National Park and Table
Mountain will attract more visitors and allow for instant sharing of photos and stories via
social media.
Key sites that have been targeted for boosted tourism can be identified for Free WiFi,
thereby creating a magnet for visitors in SA.
10
3. Create employment opportunities targeted at the unemployed through the
EPWP
Free WiFi deployments require semi-skilled labour. The ongoing support and
maintenance of these networks can be undertaken by staff trained up via the EPWP.
The developmental and LED mandate of local government clearly speak to the need
for connectivity as a solution and growth enabler, all the while supporting Tourism
(recognized in the SONA by President Zuma). A research paper by Deloitte (2014:3)
found that connectivity enables economic growth in developing countries and “by
providing access to information, connecting people to businesses everywhere and
opening up new markets, the internet can transform the very nature of the economy
and support economic development.” Internet access enhances the productivity of
labour and capital through information flow, innovation, financial capital access,
entrepreneurship and labour enhancement.5
1.
2.
3.
4.
5.
Improved human resources qualification and specialisation Facilitation of entrepreneurship and business expansion and access to new markets Enhanced speed and quality of information flow results in reduced transaction costs Greater innovation and adoption of new organisational models and business processes Enhanced access to financial capital with services such as mobile banking The direct results of connectivity are:
Project Isizwe, a Non-Profit Organisation came up with an innovative solution to offer
free WiFi as a basic service and growth enabler. Project Isizwe and its approach to
facilitate the establishment of Free Internet Zones is detailed in the accompanying
information. A partnership with Isizwe will result in increased levels of connectivity,
affordable WiFi and the envisaged outcomes of LED and a growth in the Tourism
sector.
5 Deloitte. 2014. Value of Connectivity. 11