Tunisia has undergone a transition since 2014 from a centralized governance model to a decentralized one, marking a turning point in the nation’s history. The municipal elections of May 6, 2018, the first democratic local elections, embody the transfer of power from the national level to the local level. This shift empowers local actors and works toward better governance at the community level. This paper explores the key challenges and potential Opportunities for Public smart spaces implementation in Tunisia based on the discourse of municipal representatives. This is an abductive and exploratory study based on a qualitative methodology relying on case study results. Challenges include Digital infrastructure deficiencies, Cybersecurity risks, Policy fragmentation, Bureaucracy, Rapid urbanization, Budget constraints and financing, and environmental degradation. Opportunities proposed involve Real time Data integration, Public-private partnership, Citizen engagement and participation, Functionality and user experience, job creation, renewable energy adoption, and smart waste management.