Boards in the digital age: Are directors digitally fit?

IN TODAY'S boardrooms, digital transformation is no longer a distant theme reserved for CIOs and consultants. It is a central governance concern; one that demands fluency, not just familiarity. As companies confront the disruptive tides of artificial intelligence, cybersecurity risks and evolving data ecosystems, a sobering question emerges: are boards equipped to govern in the digital age?

- NQOBANI MZIZI

While legislation in most jurisdictions does not yet mandate digital literacy as a formal prerequisite for directorship, it is increasingly becoming an unspoken expectation among investors, regulators and stakeholders who demand boards capable of navigating complex digital landscapes. A board that lacks digital fluency cannot effectively interrogate strategy, oversee risk, or drive innovation. Digital illiteracy has moved from the margins of boardroom discourse to the heart of strategic risk.

The Cell C case is instructive. Once a rising player in South Africa's telecoms landscape, the company held immense promise in a sector where data was fast becoming the new currency. But as market demands shifted and digital infrastructure became a critical differentiator in competitiveness, Cell C struggled to keep pace. Insiders reported that executives repeatedly raised concerns about the scale, urgency and direction of investment in data infrastructure and innovation.

While internal deliberations remain confidential, available evidence and industry observations suggest the board was slow to fully grasp the scale and urgency of the technological shift, possibly due to competing priorities, an operational focus, or gaps in strategic foresight about how rapidly and fundamentally technology was reshaping the industry. This disconnect between executive urgency and board-level understanding led to delays in decision-making, missed partnerships and underinvestment in critical platforms. Over time, the company lost ground to competitors with more agile, digitally attuned leadership. What followed was a drawn-out financial restructuring that shook investor confidence and highlighted the consequences of strategic inertia. Cell C's challenges were not simply financial. They were also governance failures, rooted in an inability to engage with technology-led change at the level it demanded.