What would be the best practices or important things to make note of when drafting a Master Service Agreement for Software Asset Management as a Managed Service?

Tshepi, I'd add the following also - over and above what others have recommended.

- Warranties and Disclaimers - Service Provider should warrant that services will be provided with reasonable skill and care, in accordance with industry standards
- Indemnification and Liability - to protect against any claims, losses or damages arising from breach of the contract
- Governing Law and Dispute Resolution - Any disputes arising shall be resolved in good faith negotiations failing which then you'll take steps in arbitration in accordance to SA law.
MOST important as State-Owned you'd need to stipulate that the any SW development remains your IP. Thus the Service Provider will transfer this and the skill and knowledge to you.
Hope this helps

1) Define the scope of services clearly, inclusion and exclusion along with deliverables.
2) Define service levels and performance metrics example %completeness, data accuracy, timely reporting.
3) Governance and security
4) Commercials
5) Compliance and Audit
6) Liabilities (if any)
Don’t forget to build an exit term or readiness checklist