The Competition Commission is directed to study potential anti-competitive trends in the cloud market, reflecting investigations already launched in Europe
A new National Data and Cloud Policy to accelerate the country’s digital economy
On 31 May 2024, over three years after a consultation was launched on an initial draft, South Africa’s Department of Communications and Digital Technologies (DCDT) published the National Data and Cloud Policy. The document provides a framework aimed at efficiently managing and utilising data through cloud computing technologies. Its primary goals are to enhance government service delivery and to foster socioeconomic development by promoting data-driven decision-making and creating “data-based tradable goods and services”, which the DCDT states will support the country’s emerging digital economy. Key principles of the policy include:
Accelerating the rollout of digital infrastructure to ensure fast, secure and reliable broadband connectivity;
Ensuring data privacy and security;
Promoting open data and data interoperability; and
Adopting a cloud-first approach.
The policy proposes a range of interventions spanning broadband, digital skills and data protection
Underpinning these principles are a number of high-level policy proposals and more specific interventions, including to mobilise the necessary resources (whether technical or financial) to achieve 100% broadband coverage for all South Africans by 2030 and to introduce new rules for the building, operation and resilience of data centres. To improve access to data and cloud services, the policy emphasises a focus on the digital inclusion of vulnerable groups (e.g. poor communities and people with disabilities), while outlining a need to review and adapt data protection and cybersecurity laws, and adequately resource data protection authorities to help create trust in the online environment. The policy also underscores the importance of cross-border data sharing – albeit with certain safeguards in place – and capacity building to ensure individuals, organisations and government departments have the skills to adopt and use digital technologies. In addition, it reinforces the need for South Africa to invest in R&D and implement an effective data governance model, while directing the Competition Commission to study potential anti-competitive trends and behaviours in the cloud services market (reflecting investigations that have now been launched in four European countries).
Funding, stakeholder engagement and government support will all be key to a successful implementation
According to the DCDT, the National Data and Cloud Policy is aligned with the Government’s digital transformation agenda in its aims to foster a robust digital economy and, in turn, boost economic growth. The policy also seeks to align with the African Union’s goal of harmonising data-related policies to enable “digital economic collaborations” across the continent and with international partners. The DCDT states that a successful implementation will require a concerted effort among stakeholders, including government departments, the private sector and civil society organisations, as well as the creation of councils or taskforces to advise the Minister and other officials. Adequate funding, stakeholder engagement and support of the State Information Technology Agency (SITA) will also be critical to maximise the policy’s impact and its scope to bolster existing cybersecurity and data protection legislation, such as the Protection of Personal Information Act, known as POPIA.
