This systematic literature review examines the implementation of e-government initiatives in developing countries, focusing on their impact on public service delivery and progress towards Sustainable Development Goal 16.6. Through a comprehensive analysis of peer-reviewed articles, policy documents, and case studies, the research explores the interplay between institutional capacity, socio-cultural factors, and the digital divide in shaping e-government outcomes across urban and rural contexts in countries including Ghana, South Africa, Kenya, India, Nigeria, Brazil, and Indonesia. Following a rigorous search strategy and inclusion criteria, the review synthesizes findings from multiple sources, highlighting significant advancements in e-government adoption, particularly in urban areas, while identifying persistent challenges in rural regions due to inadequate infrastructure, limited digital literacy, and resource constraints. The systematic review of literature underscores the potential of e-government to enhance transparency, reduce corruption, and improve service delivery, as exemplified through successful initiatives in countries like Rwanda and Estonia. However, the synthesized evidence also reveals uneven progress, exacerbated through the urban-rural digital divide and varying institutional capacities. Systematically analyzing and integrating existing research, this review concludes with evidence-based recommendations for bridging these gaps, emphasizing the need for targeted infrastructure development, digital literacy programs, inclusive design approaches, and context-specific solutions to ensure equitable access to e-government services and accelerate progress towards effective, accountable, and transparent institutions at all levels.