Executive summary — Taking stock and looking ahead: digital divide assessment of the City of Cape Town

Submitted by Editor on 19 December, 2002 - 17:34.
Background on this study

When used effectively, information and communication technology (ICT) offers huge potential to empower people in Cape Town to improve their lives. Yet the reality is that a "digital divide" exists which separates those who can access and use ICT to gain benefits, and those who do not have access to technology or cannot use it for one reason or another. The City of Cape Town is committed to putting ICT to work for social and economic development, and is driving the changes necessary to ensure that ICT is used effectively. However, City leaders need to have a realistic understanding of what ICT can - and cannot - do for Cape Town's communities and organisations, and they must lead effectively and bolster public confidence in the path they take.

In January 2002, the City Council undertook a pioneering assessment of the digital divide in Cape Town, in order to get a picture of where its citizens, communities, and organisations stand in terms of ICT and the potential benefits of ICT use for social and economic development in the City. This report of the findings examines the access to, use of, and need for ICT in Cape Town, with a special focus on the millions of people that live in disadvantaged communities within the greater metropolitan area. This study is intended to help City leaders and administration measure and plan for ICT integration, to focus their efforts from within, and identify areas where external support is required. Further, the study aims to provide benchmarks for comparison and gauging progress. And finally, the study is intended to be one part of a greater process to bring a wide range of stakeholders into the discussion about ICT and development in Cape Town. The City has already started to put ICT to work to achieve broad development goals, in particular through its Smart City strategy.

This study compiled information from a range of sources, and collected direct input from communities, government agencies, academic institutions, businesses, community organisations, and others. The aim was not to ascertain the precise status of ICT across the entire population of Cape Town. Instead, the study took a wide-angle view of the issues, and focused on a sample of communities and organisations to paint a mosaic of the overall ICT landscape in Cape Town. The assessment had four main objectives: (1) to gauge Real Access to ICT; (2) to assess the needs of Cape Town's people and organisations for future ICT services; (3) to identify opportunities to improve access to ICT, use ICT to have a real and beneficial impact on Cape Town, and help fulfil the City Council's strategies for social and economic development; and (4) to identify constraints that will hinder improvement.

Overview of ICT status in South Africa, the Western Cape, and Cape Town

Compared to other countries, South Africa is in the middle tier of ICT development with a relatively large and growing population that has access to ICT, but many issues hinder further growth and the beneficial impact of ICT. Like most other countries, South Africa has a large internal digital divide, which limits access to ICT and its effect on people's lives. Most ICT-related policies fall under the jurisdiction of the National and Provincial Governments, and the City's course of action will be shaped - but not determined - by their actions in this area. National and Provincial Governments are embracing technology and have recently enacted important policies and initiatives related to ICT. South Africa's ICT policy framework is currently undergoing rapid change as the National Government seeks to harness ICT for growth and grapples with new social issues raised by technology. Overall, this policy process has been consultative and forward thinking. In terms of policy, the Provincial Government may have legislative and executive powers concurrently with the national sphere of government over, among other things, education, agriculture, economic development, welfare, tourism, trade and investment promotion. These powers can be exercised to the extent that provinces have the administrative capacity to assume effective responsibilities.

While there is a portion of the Western Cape population that is highly literate and financially stable, the majority of people below the poverty line do not have a fixed or mobile telephone, or access to a computer, email, or the Internet. Since the majority of low-income inhabitants in the Western Cape cannot afford to pay for basic services such as water, electricity, and sanitation, it follows that ICT services are out of reach as well. Only 11% of the national ICT sector is in the Western Cape. The Western Cape and Gauteng Provinces have the greatest availability of school infrastructure compared to other provinces, and the Western Cape has the highest high school pass rate in South Africa at 80%. Five prominent tertiary institutions in the Western Cape supply trained personnel for the ICT industry.

During recent years, the City Government has embarked on a number of ICT-related programmes designed to improve its own internal processes and increase the availability of ICT to citizens and businesses in the area it serves, notably: the Smart City Strategy, Smart Cape Access Project, the Ukuntinga ERP project, Business Support Services, and the Library Business Corner initiative.

Overview of the status of Real Access in Cape Town's communities and organisations

Factor in Real Access to ICTCommunitiesOrganisations and businesses


Physical access to technology

Is technology available and physically accessible?

Communities have low access to PCs overall, and Internet use is also very low.Although Telkom has met its national rollout obligations during its five-year exclusivity period, the trend of increasing access to fixed line telephones is being reversed by rates of disconnection as high as 50-70%.Respondents reported greater access to cellular telephones than to fixed line telephones. Public access to connected computers is increasingly available in schools and libraries. Community access points are rare and cover only a small portion of the population. Although libraries, post offices, telecentres, and Internet Cafes have shown promise in giving people access to ICT, they have not yet managed to do so to large sectors of the community. Even where computers are available for public use in a local community centre, the majority of respondents were not aware that they have local, public access to computers.Most organisations have basic access to PCs, faxes, and telephones. However, some CBOs and SMMEs do not have PC access. Some organisations that lack ICT see public access as an option.Although NGOs often have access to ICT, their effective use of the technology is severely limited by the lack of access among their clients and other organisations that they work with.Local Government is one of the main users and owners of ICT. Approximately two-thirds of the organisations interviewed have access to the Internet.Cape Town's three universities are all currently in the process of expanding their computer resources for use by staff and students alike.

Affordability

Is technology affordable for people to use?

Overall, fixed line and cellular telephones, computer hardware, and Internet access are simply too expensive for most people in Cape Town's poor communities to use regularly.

Charges for fixed line telephones are based on non-competitive pricing structures set by Telkom, the incumbent telecommunications provider. Telkom's new prepaid service offers promise to help people afford basic telephony.

Low-cost prepaid phone cards have helped put cellular telephones within the reach of more people, if only to make the telephone available for receiving calls.

Overall, organisations feel that the benefits of ICT outweigh the costs. Although the SMMEs surveyed acknowledge the importance of ICT and the fact that it would give them a competitive edge to their businesses, most reported that high costs prevent them from buying equipment, training their staff, and paying telephone bills associated with Internet use.

Even larger businesses and major NGOs indicated that Internet access costs are a major constraint to increased ICT use.The threat of theft is another problem that affects all of Cape Town's organisations, but especially SMMEs and CBOs located in economically depressed areas. The high cost of installing security adds another factor to an ICT purchase.The cost of training was cited as a reason why organisations cannot develop the capacity needed to start using ICT. Many organisations call for government-subsidised training courses.

Appropriate technology

Is the technology that is available appropriate to local needs and conditions? What is the appropriate technology according to how people need and want to put technology to use?

The majority of people in Cape Town's disadvantaged communities lack electricity or a secure location to keep a computer in their home; so personally owned PCs are unlikely to be the most appropriate technology for them. However, that does not mean that they cannot participate in the information society.

In light of current technology developments, more appropriate ICT options in the future will include handheld computers and public access points, and more effective use of cellular telephones, television, and radio, including for Internet access.

There are numerous initiatives and organisations involved in promoting the use of open source software and "thin client" technology in the computer laboratories of schools and community centres.

There are many organisations in Cape Town that use ICT in new and innovative ways to meet specific needs, which could be replicated.

Capacity and training

Do people understand how to use technology and its potential uses?

Overall, professional level training seems to be linked to employment, but basic ICT skills are far less in demand and there is a glut of unemployed people with low-end ICT skills.

Low overall access to ICT among the unemployed means that trained people lose their skills because they cannot practice them.

Cape Town has at least 120 private ICT training programmes. However, most of these programmes are in Bellville and the central city, with a severe lack of training centres in outlying and isolated areas.

Most training programmes that serve township communities are locally organised, informal, and of unverifiable quality.

There is a need for accreditation for ICT training programmes.

Many of the organisations surveyed have provided training to their staff members.

Larger businesses and major NGOs tend to train their staff to higher levels of computer use than do SMMEs or CBOs.

Overall, there is a lack of high-level ICT skills in Cape Town. The greatest demand among the City's businesses is for high-level technology skills, professionals, and teachers.

There is also a need for learning environments in the workplace, so that employees have the opportunity to practice their ICT skills regularly so that they are comfortable and effective in using the technology.

In terms of capacity to imagine the possibilities for how they could use technology to improve what they do, Cape Town's organisations have shown vision.

Locally relevant content

Is there locally relevant content available, especially in terms of language?

Although there are many efforts that generate information and content that is relevant to people in Cape Town, very little of it is disseminated electronically.

Local Government information and forms made available as online resources offer promise as an incentive for Cape Town citizens to use ICT.

Many community access points have noted the lack of locally relevant content as one of the key factors that limits the Internet use in the communities where they operate. Making information available in local languages would also be beneficial, but remains a secondary consideration.

The predominance of English in online content may limit widespread interest in and use of the Internet among non-English speaking populations. High levels of illiteracy are probably a greater hindrance.

Initiatives are starting to emerge in South Africa that will foster the development of local language content in electronic formats, especially in the education area.

There is a lack of up-to-date information about the City and its services.

In particular, businesses want more information about the City's tendering process and policies for black empowerment.

More and better online entrepreneurship support is needed.

Trust in technology

Do people have confidence in and understand the implications of the technology they use?

The majority of respondents feel that Internet transactions are very safe. However, given that most have never used a computer, the level of trust reported could be misleading. It may be reflective of the fact that people do not understand the security and privacy issues at stake.The organisations surveyed have confidence in ICT and are ready to use computers and the Internet for paying accounts and making purchases.

Integration into daily life

Is technology use a burden to people's lives or does it integrate into daily routines?

Those who use PCs find them to be very useful, and easy to use. There is a small segment of well-resourced, often larger, businesses that use ICT as an integrated part of their work. The same can be said of the major NGOs, albeit to a lesser degree. However, small businesses and CBOs struggle to integrate ICT seamlessly into their operations, because of equipment failure, lack of technical knowledge, and theft.

Socio-cultural factors

Are people limited in their use of technology based on gender, race, or other socio-cultural factors?

Respondent computer users are disproportionably higher income, educated, and "Coloured".(3) (There were not significant enough numbers of "White" respondents in this study to reveal the bias toward the "White" population that is shown in other studies of ICT demographics in South Africa.)

Differences based on gender were shown to be minimal.

ICT access and use in organisations echoes the patterns seen in the greater population, with clear divisions across racial lines.

While the percentage of black-owned businesses is increasing, it still does not appear to reflect the population ratio, especially in the ICT sector.

Sustainability and the local economic environment

Is there a local economic environment favourable to technology use? Is technology part of local economic development? If not, what is needed to make it a part?

Irrespective of how affordable the technology is and whether the required training is performed, if the local economic situation is poor - with high unemployment and poverty levels - access to technology will continue to remain out of the reach of ordinary citizens.

Unemployment was a critical recurring theme in the community meetings.

The vast majority of respondents want ICT access and training because they hope it will increase their chances of finding a job, or obtaining a better job.

Among the communities studied, income relates directly to computer use.

Cape Town's ICT industry primarily serves South African businesses, with only a few companies that have become internationally competitive.

Insiders view Cape Town's distance from the country's main business centre in Gauteng, and its small local market as major weaknesses for the ICT sector.

Macro-economic environment

Is technology use limited by the macro economic environment, for example, in terms of transparency, deregulation, investment, and labour issues?

Overall, people are aware of the key macro-economic issues that affect them, notably privatisation; however, public opinion focused on negative implications such as work retrenchment.

Most people in the communities studied do not understand the potential benefits of privatisation in terms of general economic growth and related employment opportunities.

The ICT companies located within the Bandwidth Barn are the organisations most aware of macro-economic issues that hamper access to ICT.

The main macro-economic issues raised are related to telecommunications environment, high telecommunications and Internet access costs, and substandard or restrictive telecommunications services.

Community organisations find themselves in a difficult situation when it comes to lobbying for the liberalisation of the telecommunication sector: on the one hand increased liberalisation is expected to mean cheaper phone calls and Internet access, on the other hand it could lead to the retrenchment of lower end staff (often the clients of CBOs) when the telecom companies downsize to become more cost-effective.

Legal and regulatory framework

Do laws and regulations limit technology use and what changes are needed to create an environment that fosters its use?

Overall, people are unaware of how legal and regulatory matters related to ICT impact on their lives.

There is a need for citizens to be informed of the implications of laws and regulations in this area.

Furthermore, stakeholders want to be consulted and engaged in policy processes to ensure that their views are taken into consideration.

Three issues emerged during this assessment as primary ICT policy concerns among Cape Town organisations: the need for an ICT training certification authority; the need for regulation of Internet Portal Companies, and the need for an e-rate for community organisations.

Public support and political will

Is there political will for Government to do what is needed to enable the integration of technology throughout society? Is there public support for Government ICT policy?

The majority of respondents feel that the City should be responsible for improving public access to ICT.

Contributions from the Provincial and National Government are also cited as important, reflecting the widespread perception that the public sector has a role to play in driving ICT development.

The organisations interviewed believe that the public sector should take a leading role in improving ICT use: local, Provincial, and National.

The vast majority of organisations are interested in working with the City to improve ICT access and use in Cape Town



    Common themes that emerged from the study :

    Community meetings

    • Need for ICT services:Three issues were mentioned repeatedly: basic access, training, and jobs. People are most enthusiastic about ICT where it can help with basic services and employment. Awareness about ICT programmes is low overall. Low-to-middle income communities see computers as a simple necessity for the future of their children, especially to get jobs and information. Some indicated a desire for computers only because they have a vague belief that computers "are a good thing". Online government information is a low priority for most people, well after basic ICT access, training, and jobs. Low-to-middle income communities noted that community access to ICT would help "take the kids off the streets". In low-income communities ICT is seen as an issue for young and middle-aged people to be concerned about, but not the elderly. Refurbished or second-hand computers are welcome, as long as they are functional.
    • Potential opportunities and solutions:There is considerable non-specific enthusiasm for computer technology, and a general feeling that the communities are being left out of the information society and that it is important to bridge the digital divide. Community members are ready and willing to conduct their own training programmes, if they are given the means to do so. Overall, schools and libraries are seen as the best possible venues for community ICT access. Evening access to ICT, linked to online access to government services, was repeatedly identified as a way to help alleviate the problem of government services closing early. Each community has its own unique set of community structures that can be engaged to mobilise the residents.
    • Potential constraints to improving ICT access:People are concerned that ICT access points based in schools and libraries would not be open after hours for the public or would not have the necessary staffing. Security is a concern. Community organisations want to communicate with the City, but feel that the City "is not listening" and that online access to officials will not help. In low-income communities, widespread poverty and unemployment mean that most people cannot afford to pay for computer use or training. While community members in low-income communities repeatedly requested training as a means to obtain jobs, many other respondents have been trained but were unsuccessful at finding jobs. Overall there is a mismatch between training available and job opportunities. Geographical isolation is a key form of exclusion from ICT. Overall, elderly people feel left out and do not understand how ICT applies to them. Issues related to ICT access for disabled persons or equal access for women did not arise in the meetings.

    Organisations

    • Need for ICT services:CBOs and SMMEs usually have the least access to ICT. Local Government is seen to be responsible for providing ICT access to citizens. CBOs and NGOs want to be better equipped to play the role of information broker related to the City's policies and procedures. There is a need for a clearinghouse of ICT and digital divide initiatives in Cape Town. Businesses want the City to use ICT more effectively to execute its functions, particularly to make better use of ICT to disseminate vital information and increase the speed of its business transactions. Organisations feel that the City should play a role in lobbying for cheaper ICT services. There is a need for high-end ICT skills that are recognised by a training authority.
    • Potential opportunities and solutions:Organisations have a strong belief in the power of ICT. There is considerable interest in working with the City to help improve technology use and bridge the digital divide. The City can draw from a vast pool of experience that already exists within the private sector and among established NGOs. Networks of activities already exist. Existing initiatives are breaking new ground. Organisations are supportive of the City's approach.
    • Potential constraints to improving ICT access:Organisations do not know how to work with the City. There is a perceived lack of commitment among City employees. There is a perception that increased online information could widen the divide if it is not accompanied with improved access to the Internet for all. Other issues are viewed as more important than ICT, and ICT is viewed as only part of the solution for social and economic development.
    Recommendations
    • Use best practice principles in Cape Town's ICT strategies and programmes, including:
      • Build upon existing kernels of activity;
      • Scale up;
      • Seek public support for strategic planning by helping citizens understand the potential benefits of ICT for their daily lives, and by involving the private sector;
      • Catalyse action throughout society;
      • Coordinate to avoid duplication;
      • Establish links between ground level efforts and policy-making processes;
      • Simultaneously address traditional development and ICT issues;
      • Identify levels of priority for urgent and longer-term actions; and
      • Establish and continue a feedback process throughout implementation.
    • Frame ICT strategies with long-term ICT objectives, notably to:
      • Improve Real Access to ICT in Cape Town;
      • Foster socio-economic development and bridge the digital divide; and
      • Improve the way that ICT is used to meet the specific needs of Cape Town's communities and organisations.
    • Focus City actions toward Real Access to ICT.
    • Position ICT as an enabler for broad socio-economic development in key target areas, including:
      • Governance and government processes,
      • Economic growth,
      • Entrepreneurship and employment,
      • Poverty reduction, and
      • Access to ICT.
    • Scale up programmes to improve local Government ICT use and internal capacity.
    • Build upon Cape Town's ICT kernels and facilitate widespread involvement to implement City strategies.
    • Provide City Council leadership for ICT activities in target areas.
    • Understand the obstacles in order to overcome them effectively.
    • Focus on implementation and conduct further research only as needed.

    1 The following acronyms (which are written out at the appropriate places in the main report) are used for the purposes of this executive summary: community based organisation (CBO); information and communications technology (ICT); non-governmental organisation (NGO); personal computer (PC); and small, micro and medium-sized enterprises (SMMEs).

    2 For the purposes of this report, "organisation" refers to all of the kinds of organisations and businesses involved in this study - including academic institutions, government agencies, non-governmental organisations, community-based organisations, businesses, and others - unless specified.

    3 Note to international readers: Socio-economic data in South Africa often is still analysed using the racial classification system drawn up by the Apartheid regime: hence, the population is divided among African, White, Coloured (of mixed race) and Indian (of Asian decent) people. In recent times this racial classification is used to monitor to what extent racial divides drawn by the Apartheid regime has been exacerbated or diminished. The National Economic Development and Labour Council (NedLac), explains the use of racial classification in its Report on Social and Economic Developments in South Africa to the 1997 Summit as follows: "In this report we refer to different races: Africans, Indians, Coloureds and Whites. Although the Nedlac constituencies reject racism and racial classification, we acknowledge that a proper discussion of equality in South Africa cannot ignore the impact of Apartheid policies. For this reason we use racial terms to describe differences in living standards." For more information see http://www.nedlac.org.za/docs/reports/socialreps/1997/intro.html


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