Digital transformation in local government can dramatically improve service delivery, transparency and citizen engagement, according to research published earlier this year by Nelson Mandela University.

The study, “Assessing the impact of digital technologies on service delivery in local government” published in March 2025, concluded that digital initiatives enhanced efficiency, improved citizen participation and increased transparency. The City of Johannesburg’s ‘Joburg Connect’ e-services portal, and Cape Town’s ‘Smart Cape’ project, for example, demonstrate the transformative potential of digital technology in the public sector.

The research also identified significant barriers preventing widespread adoption across South Africa’s municipalities. These include the digital divide affecting underserved communities, cultural resistance to technological change, limited government funding, and inadequate regulatory frameworks. Of fundamental importance is that local governments need digitally skilled personnel.

The Youth Employment Service (YES), South Africa’s private sector-funded youth employment initiative, is a pipeline for talented youth to get quality work experience and access to digital skills.

“There is an increasing global divide between nations that create and control advanced technology, and those that simply consume it,” says Ravi Naidoo, CEO of YES. “Public sector transformation depends on having a workforce equipped with modern digital capabilities.

Through programmes like our Microsoft partnership, where YES leads the AI-skills Hub for Africa, we’re preparing youth for the future of work through globally recognised digital certifications. This ensures that talented youth from all backgrounds gain the technological confidence needed to drive government efficiency and service delivery in technology-powered industries”.

Municipalities that have invested in digital skills development have seen tangible results. Polokwane Local Municipality’s e-service portal seeks to enable residents to access water and electricity payments, rates queries and meter readings online, improving efficiency while reducing administrative burden. Yet many municipalities struggle with outdated IT systems and skills gaps.

“Our problem is that while youth may be intrinsically tech-savvy, they lack work experience to demonstrate their employability to potential employers, including government,” explains Naidoo. “Traditional approaches to skills development are too slow and expensive. We need quick-to-market, non-accredited training programmes combined with practical work experience.”

YES is a public-private partnership that has already placed over 196 000 youth in 12-month work experiences with over 1880 corporates. YES internships are entirely funded by employers, no taxpayer contribution. Every intern receives zero-rated access to foundational AI courses and career-readiness modules on the YES One app, with 17% of YES Youth alumni starting their own businesses.

“Digital transformation in government isn’t just about infrastructure – it’s about having people with the right skills to implement, maintain and continuously improve these systems,” says Naidoo. “By ensuring young people get practical experience alongside digital training, we’re creating a pipeline of talent that can accelerate public sector modernisation.”

The YES quality work experience and digital skills that youth acquire create the basis for longer-term economic growth in South Africa. Equipping young South Africans with AI and digital skills will not only close unemployment gaps but will also strengthen the very foundations of public service delivery.