Abstract
This study explores the opportunities and challenges associated with digital transformation in public procurement within South African municipalities. The article is grounded in the understanding that traditional procurement systems are often characterized by inefficiency, excessive paperwork, procurement delays, limited transparency, and vulnerability to corruption and financial mismanagement. Consequently, municipalities are turning to digital technologies such as e-procurement platforms, electronic tendering systems, digital supplier databases, and automated workflow systems to modernize procurement processes. The study adopts a qualitative research approach based on a review of existing literature on government reports, policy documents, and scholarly publications related to digital governance and public procurement in South Africa. The findings reveal that digital transformation in public procurement presents significant opportunities for municipalities, including improved procurement efficiency, reduced administrative costs, enhanced transparency, strengthened accountability, faster service delivery, and better monitoring of procurement activities. However, the study further identifies several challenges such as inadequate digital infrastructure, limited financial resources, shortage of technical skills, resistance to organizational change, cybersecurity risks, unreliable internet connectivity, and weak institutional capacity hindering the successful implementation of digital procurement systems in South African municipalities. The study concludes that although digital transformation has the potential to revolutionize public procurement and strengthen good governance in South African municipalities, its success depends on strategic leadership, investment in digital infrastructure, capacity building, and the development of effective regulatory frameworks. The study recommends increased investment in digital skills training, stronger cybersecurity measures, and improved collaboration between government and technology stakeholders to ensure sustainable and effective digital procurement systems in local government.