Information Technology Service-Learning (ITSL) projects are essential for bridging digital literacy gaps in underserved communities such as Botshabelo, South Africa. Despite global technological advancements, many individuals in such areas lack basic computer skills crucial for employment and personal development. The ITSL project implemented in Botshabelo aimed to empower unemployed and computer-illiterate community members through practical training and fostering digital inclusion. This study investigates the lasting impacts of this initiative, exploring how participation has influenced participants’ digital literacy levels, employment opportunities, and community engagement. Using a qualitative phenomenological approach, data was collected through semi-structured interviews 16 months after the project’s conclusion. The findings, analysed through the lenses of digital divide theory, social capital theory, and asset-based community development, reveal significant improvements in digital literacy and self-confidence among participants, many of whom transitioned from unemployment to employment or career advancement. Additionally, some participants became digital literacy advocates within their community. These results underscore the transformative potential of ITSL programs in promoting sustainable development and economic growth in rural settings. The study concludes that service-learning initiatives can effectively enhance socio-economic opportunities and foster community collaboration, suggesting broader applications for similar projects in other underserved communities globally. This highlights the critical role of digital literacy in achieving broader sustainability goals.