how South Africa can reduce the risks and get it right

The digital revolution is reshaping governance worldwide. From the electronic filing of taxes to digital visa applications, technology is making government services more accessible, efficient and transparent.

South Africa is making progress in its digital journey. In 2024 it climbed to 40th place out of 193 countries, from 65th place in 2022, in the United Nations e-Government Index. This improvement makes the country one of Africa’s digital leaders, surpassing Mauritius and Tunisia.

South Africa has identified more than 255 government services for digitisation. Already, 134 are available on the National e-Government Portal. This achievement is remarkable. Nevertheless, the shift to digitisation comes with challenges and risks.

Some countries have weakened the state’s role by rapidly outsourcing key government functions. But South Africa has the opportunity to build a model of digital transformation that strengthens public institutions rather than diminishes them.

New technologies must bring tangible benefits for citizens. Digital transformation can improve public administration. But, if mismanaged, it could burden taxpayers with costs.

Benefits

Digital transformation comes at a cost. This is particularly true if the state fails to use its procurement power to negotiate reasonable prices. Infrastructure upgrades, cybersecurity measures, software licensing and system maintenance require substantial financial investment.

The question is whether these expenses are a necessary step towards a more efficient and accessible government.

Two South African examples illustrate that digital transformation can save money and enhance service delivery quality.

The first is the South African Revenue Service. Its goal is to ensure that taxpayers and tax advisers can use the service from anywhere and at any time. The changes made more than a decade ago show that digital systems can yield substantial financial gains. After introducing e-filing in 2006, the revenue service streamlined tax processes, reduced inefficiencies and led to higher compliance rates. Ultimately this led to improved revenue collection.

Similarly, digitising social grant payments has had a number of positive effects. In a chapter of a recent edited volume on public governance, my colleagues and I wrote a case study about how the South African Social Security Agency used basic technologies and platforms like WhatsApp and email to process a grant during the COVID pandemic. It allowed over 14 million people to apply, paid grants to over 6 million beneficiaries during the first phase of the project.

South African Social Security Agency annual reports show that over 95% of grant beneficiaries receive their payouts electronically through debit cards, instead of going to cash points. This improves security and lets beneficiaries decide when to get and spend their money.

There are fears that automation could result in massive job losses. But global experience has shown that digitalisation does not necessarily lead to large-scale retrenchments. Instead it can shift the nature of work to other responsibilities.

The South African Social Security Agency provides a compelling case. Its transition to digital grant payments did not lead to job losses. Similarly, the expansion of e-filing at the revenue service has not resulted in workforce reductions. In both cases efficiencies improved.

These cases highlight that digital transformation is reshaping roles rather than displacing employees. Public servants are moving into areas such as cybersecurity, data analysis and AI-driven decision-making.

Shortcomings and pitfalls

A number of inefficiencies are at play in government services.

Firstly, most government digital operations still work with outdated paper-based systems. The lack of a uniform digital identity creates bureaucratic inefficiencies and delays.

Secondly, fragmented procurement of equipment in government has led to duplicated efforts, increased costs and fruitless expenditure.

Thirdly, different departments often use isolated and incompatible digital systems. This reduce the mutual benefits of digital transformation. The State IT Agency has been blamed for inefficiencies, procurement failures and questionable spending.

Fourthly, South Africa’s public service remains fragmented. Citizens still struggle to access government services seamlessly. They often move between departments to complete what should be a single transaction.

Without a centralised system, departments operate in isolation, duplicating efforts, increasing costs and eroding public trust.

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Fifth, a lack of skills. Increasing reliance on digital tools requires expertise in data analytics, cloud computing and automation. Many public servants lack the training to take on these new roles. The National Digital and Future Skills Strategy was introduced in September 2020 to bridge this gap, but its effectiveness depends on its implementation.

Introducing it in 2020 at the height of the COVID-19 pandemic forced government to make digital leaps which otherwise might have taken longer. To sustain services, technology had to be rapidly adopted, including basic things like holding Cabinet meetings online, using a system rapidly developed by the State Information Technology Agency.

Sixth, security concerns complicate the transformation. As government systems become digital, they become vulnerable to cyberattacks. South Africa must put in place cybersecurity infrastructure to prevent identity theft, data breaches and service disruptions. A cyberattack on one department could affect the entire public sector.

What needs to be done

Government must streamline procurement, improve coordination and eliminate inefficiencies to ensure interdepartmental collaboration.

A single, integrated e-government platform would:

• cut red tape

• reduce queues

• increase efficiency.

Government needs to upskill civil servants and improve their digital literacy.

Government must create a seamless e-government system that connects services while protecting citizens’ personal information. The success of digitalisation depends on technological advancements as well as the level of trust citizens have in government systems. Without strong security measures, transparency and accountability, even the most sophisticated digital tools will fail to gain public confidence.

South Africa has the chance to demonstrate that a strong, capable state can successfully integrate technology while safeguarding public interests. It should take full advantage of offers by Microsoft, Amazon and Huawei to support digital skills training in the public sector in a way that does not advantage one company’s technologies over others. Choices of technology must be user-centric, not based on preferences of accounting officers and chief information officers. Leaders of public institutions must be measured on their ability to digitally transform their organisations.