From policy to opportunity: Turning government’s tech push into SMB growth
6 min read
Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement has set out bold ambitions for economic growth and social development in South Africa. Announcements such as a new 3% inflation target and R1 trillion in funding – aimed at roads, energy, water and digital infrastructure – offer a roadmap for accelerating gross domestic product growth and enhancing state capacity over the next three years.
The government faces the urgent challenge of catalysing economic growth to reduce widespread poverty as well as improving service delivery for citizens, businesses and investors.
Technology, particularly solutions such as analytics, artificial intelligence (AI) and digital platforms, is one of the most powerful levers the government can pull to achieve its aims. The public sector has access to a treasure trove of data, ranging from public health records to workforce statistics, at its disposal. Technology holds the key to unlocking the value of this resource and enhancing the performance of the public sector.
But for small and medium businesses (SMBs), why does this shift matter? As the government digitises procurement and payment processes, suppliers can expect greater transparency and faster payment cycles, which are critical for cash flow stability. Businesses that embrace digital tools now will be best positioned to benefit from these changes.
Public sector trailblazers
Some public sector entities and departments are already blazing a trail in leveraging data to drive better policy and service delivery outcomes. The South African Revenue Service, for example, uses machine learning to streamline audits, speed up the processing of tax returns and rapidly identify anomalies in tax submissions to detect potential cases of fraud and tax evasion.
Therefore, SMBs need to ensure clean, compliant records to avoid anomalies. Automating compliance and maintaining audit-ready books will become essential for reducing risk and saving time as tax processes become more data-driven.
It is encouraging that Minister Godongwana referred to other advanced plans to use digital technology to improve efficiencies in the public sector, which include the launch of a Procurement Payments Dashboard using data from the government’s Basic Accounting System. This dashboard shows payments made to suppliers by most national and provincial government departments.
The data from this system will help the government identify inefficiencies, anomalies and opportunities for consolidation. As importantly, it offers unprecedented levels of transparency about how the government spends its money. It is envisaged that citizens, academics and civil society will be able to use the dashboard data to hold departments accountable for their expenditure.
And, for SMBs supplying the government, this dashboard signals a new era of accountability and predictability in payments. But this requires businesses to digitise their own processes, to help them integrate seamlessly into this evolving procurement environment.
Bringing AI to the frontlines of service delivery
We believe there is scope to achieve even more by harnessing predictive analytics and AI in South Africa’s public sector. For example, data-driven insights could be used to determine where to place resources and allocate budgets more efficiently, to reduce wastage and improve service delivery.
For SMBs, this signals a broader trend: Data-driven decision-making is becoming the standard across industries. Businesses that adopt analytics early will gain a competitive edge in forecasting demand, managing resources and responding to market shifts. This isn’t just about the government; it’s about setting your business up for resilience and growth in a digital-first economy.
At a local level, AI and analytics could automate routine administrative decisions and streamline interactions between councils and residents. Over time, towns and metros will evolve into smart cities that continuously harness data to improve life for residents, through smarter traffic management, waste removal and public transportation.
For SMBs, this evolution isn’t just a public sector story – it’s a signal of new opportunities. Smart cities will require technology providers, service partners and infrastructure support, creating space for innovative businesses to thrive. Companies that digitise operations and build data capabilities now will be better positioned to win contracts, integrate with digital procurement systems and scale as demand grows.
Laying the foundation for a more equitable South Africa
Data-driven governance lays the foundation for a more equitable South Africa. In addition to improving operational performance and decision-making in the public sector, sophisticated usage of analytics and data promotes transparency and accountability about how public funds are managed. This openness builds public trust and investor confidence, which helps attract investment into the country and encourage taxpayer compliance.
Achieving this vision will require collaboration. Technology partners can play a critical role in helping the government unlock the value of its data by integrating systems, improving data quality and ensuring security and privacy standards are met. These partnerships enable the government to move faster, reduce silos and build modern digital infrastructure without bearing the full burden alone.
The road ahead will be long and complex, but collaboration between public and private sectors will accelerate progress toward a fairer, more prosperous society.
For SMBs, the message is clear: Digital readiness is no longer optional. The government’s transformation will reward businesses that are agile, compliant and data-driven.
Jordaan Burger
Managing Director
