• The gazetting of new IT procurement rules represents a victory for evidence-based governance over political opposition, enabling departments to bypass Sita when they can demonstrate better alternatives.
• The regulations create structured competitive pressure by giving Sita 10 working days to respond to departmental notices, forcing the agency to compete on merit rather than rely on monopoly power.
• Home Affairs and other critical services can now follow the Sars model of excellence, potentially transforming citizen experiences from day-long ordeals to seamless digital interactions.
• The real test will be whether departments use this flexibility wisely to deliver measurable improvements in service quality – the opportunity is created, but success requires clear leadership and vision.

I was pleased to see the gazetting last week of new rules for how government departments are allowed to procure their IT services. I have written before about the critical role that IT must play in rebuilding a capable state. I warned that the ability of government to embrace world-class IT systems was too important to be held hostage by politics.

The new rules are a victory for common sense and effective governance. The fact that this reform happened despite strong initial opposition from some members of parliament shows that when you present clear evidence and focus on what’s best for citizens, you can cut through the noise of party politics.

From now on departments like Home Affairs and key public services like the police will be able to run competitive tender processes to procure the best systems and service providers in the market, instead of being compelled to use the State Information Technology Agency (Sita). The new rules are sensibly designed. They don’t simply abolish Sita – they create a framework where departments can bypass the agency only when they can demonstrate that Sita cannot meet their requirements, or that they can procure faster or at lower cost through normal government procurement processes. Importantly, Sita gets 10 working days to respond to any department’s notice, giving the agency a fair opportunity to compete. This balanced approach addresses the real constraints departments have faced while maintaining appropriate oversight and accountability. Only if Sita fails to respond, cannot meet the requirements, or cannot compete on speed and cost, can departments proceed with alternative procurement.

What excites me most about this development is the competitive pressure it will create. Sita will now have to compete for government business on merit rather than relying on its monopoly position. This should drive the agency to address the corruption, mismanagement and poor service delivery that have plagued it for years. If Sita can transform itself into an efficient, competitive service provider, the public sector will benefit from having multiple high-quality options. If it can’t, departments won’t be trapped by its limitations.

The potential for transformation is enormous. We know what’s possible because we have a world-class example right here at home. The SA Revenue Service stands as proof that when public institutions have the autonomy to implement the best available technology, they can achieve excellence. Today, taxpayers can complete assessments in seconds and make payments seamlessly. Sars is studied globally as a model of effective digital government. This happened because Sars had the freedom to procure and manage its own IT systems.

Now imagine if Home Affairs could operate with the same efficiency. Citizens have endured years of frustration with system failures that turn simple tasks like renewing an ID or applying for a passport into day-long ordeals. With the flexibility to access world-class IT systems, Home Affairs could transform these experiences. The same applies across government – from the police service accessing real-time crime data to social services delivering benefits efficiently.

Departments must use their newfound flexibility wisely, ensuring procurement decisions are based on genuine business cases and deliver measurable improvements in service quality. We can’t afford to see this opportunity wasted through poor implementation or capture by different vested interests. The changes aren’t therefore a solve-all, they merely open the opportunity for departments to procure world-class IT services. Actually doing so will require clear leadership and vision for the role of systems within the overall approach to how a department operates.

The ultimate test will be whether South Africans experience faster, more efficient, and more reliable government services. If this reform enables departments to embrace digital efficiencies that transform their service delivery, it will have achieved its purpose. If not, it will just be another policy change that didn’t translate into real improvements in people’s lives.

The effort to rebuild government into a capable state will only succeed if we have the systems to support it. With this reform, we’ve removed a significant obstacle to digital transformation. Now we need to ensure that departments use this opportunity to implement the world-class systems that will enable them to deliver the quality of service South Africans deserve.

This is what evidence-based governance looks like – identifying problems, presenting solutions, and implementing reforms that put service delivery first. More of this approach, please.

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BLSA is a business organisation that believes in South Africa’s future and shares the values set out in the Constitution. BLSA is committed to playing its part in creating a South Africa of increasing prosperity for all by harnessing the resources and capabilities of business in partnership with government and civil society to deliver economic growth, transformation and inclusion.