Smart cities, as defined by Sustainable Development Goal 11, strive to make cities more inclusive, safe, resilient, and sustainable. Digital technologies addresses urbanisation concerns, such as rising energy use, pollution, waste disposal, and social inequities. The Internet of Things (IoT) and data-driven technologies are essential drivers, with a focus on infrastructure and decision-making in smart cities and municipalities. Digital Transformation (DT) is a prerequisite for becoming a Smart Municipality. The research objective of this paper is to investigate the role of digital technologies in improving urban processes, focusing on Smart City dimensions for municipalities, namely smart governance, environment, living, and technology. Municipalities in South Africa, particularly in the Eastern Cape, used digital adoption to boost productivity and skill development. However, the need for standardised DT principles presents problems for transitioning municipalities into data-driven organisations. The paper also examines the global energy issue and how smart cities can contribute to energy solutions. Finally, the paper addresses the following research question: ‘How can lessons learned from the Eastern Cape Municipalities digital adoption be scaled to other developing nations facing similar challenges in energy management and urban planning?’ Using a survey method, it provides guidelines in the DT framework, offering empirical insights into Smart Municipality digitalisation.