In South Africa, small, medium, and micro enterprises (SMMEs) have been recognized as the critical driving force to alleviate some economic challenges that the country faces. The challenges, such as the alleviation of poverty and the unemployment rate, can be addressed by policies that encourage SMME developments and sustainability. The historical background of SMMEs in South Africa has left them operating in various locations, such as cities and townships. There is a growing concern of the lack of information and communications technology (ICT) adoption by SMMEs, in particular those operating in townships. The aim of this study was to develop an ICT adoption framework using the sustainability livelihood framework (SLF) to encourage ICT adoption and improve the livelihood of township SMMEs. This study used the sustainable livelihood framework (SLF) to explore the broader socio-economic contents of the township SMMEs on human, social, financial, and physical and natural resource-based assets that enable the poor to enhance their capabilities and reduce their vulnerabilities. This study deployed a qualitative exploratory research. A sample of 21 SMME owners/managers operating in Soweto was used, and data were collected using in-depth interviews and observations. The study revealed township SMMEs are complex and dynamic and need various interventions in order for them to be sustainable. The SLF for township SMMEs can be used as a guideline for SMME owners/managers and policy makers when formulating ICT adoption policy.

Beyond a simple technological demonstration, widespread public participation is necessary for the development of smart cities. To guarantee that underrepresented perspectives are heard, this entails tackling disenfranchisement, fostering digital literacy, and utilising a variety of engagement strategies (online forums and community gatherings). Long-term participation builds trust and gives communities the ability to co-design audit procedures and solutions through advisory committees and participatory budgeting. Citizen engagement in the era of smart cities is necessary for developing effective governance strategies, community collaboration and ensuring that technological advancement addresses the diverse needs of the population.

The chapter explores the essential issue of the digital skills gap that exists in the South African government sector and suggests a strategic change in the approach from site-based training to comprehensive digital transformation. It outlines the major obstacles, such as the lack of infrastructure, policy fragmentation, and disproportionate access to training, that obstruct the creation of a digitally competent workforce. The discussion reveals the limitations of the existing up-skilling programs, which are usually not customized, do not consider practical relevance, and do not comply with the long-term objectives of the organization. In turn, the chapter suggests a systematic approach to change based on the commitment of leadership, continuous learning, adoption of innovation, and development of a digital mindset. It provides practical measures such as targeted training, corporate–government collaboration, and incorporating digital literacy into recruitment and career growth. Finally, the chapter recommends a more systemic and integrated understanding of skills development, in which enhancing service delivery, operational efficiency, and citizen satisfaction are interrelated, making digital capability one of the foundations of modernization in the South African public sector.

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