Johannesburg: An interdepartmental working group has been established to develop a roadmap for South Africa’s digital public infrastructure focusing on digital payments, digital IDs, and data exchange. ‘Ultimately, we would like to improve the application and disbursement of social grants, improve the accessibility of government services, and facilitate more data-driven policy and decision making,’ National Treasury’s Director-General (DG), Dr. Duncan Pieterse, said on Tuesday in Johannesburg.
According to South African Government News Agency, Pieterse addressed the Collaborative Africa Budget Reform Initiative (CABRI) International Conference on Public Finance in the Digital Era, emphasizing that the National Treasury has been collaborating with the Presidency on digital transformation under Operation Vulindlela. He highlighted the potential of digital technology to enhance Public Finance Management by transitioning it from a focus on transactions, compliance, and transparency to a strategic role that suppo
rts evidence-based policymaking, efficient service delivery, and accountability.
The DG elaborated on how modern digital systems can automate and optimize budget allocation and expenditure tracking, reducing inefficiencies and ensuring resources are used effectively. Digital systems also improve transparency by making financial data easily accessible, fostering accountability and trust in public finance management.
Pieterse also discussed the opportunity to advance the digital public infrastructure agenda under the South African G20 Presidency, emphasizing knowledge sharing and insights on the costs associated with digital public infrastructure development. He stressed the importance of determining which components should be publicly funded and which should be supported by donors and partners, given current fiscal constraints.
Collaboration with development partners and the private sector was also highlighted as a means to access best practices, share knowledge, and secure co-financing or technical suppor
t. However, Pieterse noted the necessity of prioritizing cybersecurity and robust data protection measures to safeguard information and maintain public trust as systems become more digital.
He acknowledged several challenges, including outdated Public Finance Management systems that limit data integration and impede real-time decision-making. Resistance to change, driven by fear and job security concerns, was cited as a significant barrier that requires strong leadership and effective communication to overcome.
The DG also pointed out the complications posed by rigid procurement processes and poorly structured vendor contracts, which can delay modernization efforts. He emphasized the need for investment in developing digital skills and establishing a pipeline of expertise within the public sector to reduce reliance on external vendors.
Finally, Pieterse addressed governance and coordination gaps, advocating for a clear governance framework to align stakeholders and streamline decision-making to advance dig
ital initiatives effectively.