South Africa’s local government is at the forefront of recognizing public demands and is responsible for guaranteeing service delivery to improve communities. Despite the increasing acceptance of Enterprise Resource Planning (ERP) systems, many organizations are unable to realize the anticipated benefits. Notwithstanding a wide body of ERP literature, not much attention has been paid to ERP benefits realization. This study investigates and explains the inhibiting factors of ERP benefit realization in local government organizations. A qualitative research method and interpretative philosophy was used. An inductive case study research strategy was chosen to allow the themes and patterns to emerge directly from the data rather than imposing preconceived notions. For data analysis, thematic analysis was used such as familiarization, coding, generating themes, reviewing themes, defining, and naming themes, and writing up. Sixteen concepts consistently emerged in this study and was categorised into three high level theme such as service provider inefficiency, high cost and ERP technical challenges, and Challenges in project and management changes. In this paper brief highlights are discussed under each of the three categories.