SOUTH AFRICA AND DATA FLOWS

The document examines the global landscape of data flow restrictions, specifically comparing the regimes of BRICS nations. It argues that data localisation—requiring data to be stored or processed within a specific jurisdiction—imposes significant costs on productivity, innovation, and GDP. For South Africa, the author recommends maintaining its current conditional flow regime while pursuing further liberalisation at a regional level to become a data processing hub, rather than adopting the strict localisation policies seen in China and Russia.

• Data localisation measures are increasing globally, with the number of such measures more than doubling between 2008 and 2017.
• Among BRICS nations, China and Russia implement the most restrictive regimes, prioritising security and public order over economic gains, while South Africa, India, and Brazil generally allow freer data flows.
• Data localisation does not significantly increase employment, as data centres are highly automated and create few full-time jobs relative to their cost.
• Forced data localisation increases processing costs for local firms; in Brazil, using local cloud servers instead of the cheapest global alternatives could cost 3060% more.
• Macroeconomic simulations by ECIPE indicate that data restrictions lead to substantial GDP losses across several countries, including China (-1.1%), the EU (-0.4%), and Vietnam (-1.7%).
• Data localisation can compromise security by limiting the choice of service providers and increasing vulnerability to natural disasters due to a lack of geographic data replication.
• South Africa currently operates a conditional flow regime under the Protection of Personal Information (POPI) Act 4 of 2013, which allows transfers if the recipient has adequate protection or the subject consents.
• The author suggests South Africa should avoid new restrictions and instead consider liberalising data flows within the Southern African Customs Union and SADC FTAs to become a regional data hub.
• WTO jurisprudence, specifically regarding GATS, suggests that data localisation measures may violate commitments on market access and national treatment.

APA

Ferracane, M. F. (2018). SOUTH AFRICA AND DATA FLOWS. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2018/04/GA_Th3_DP-Ferracane_20180411.pdf

Chicago

Ferracane, Martina F. SOUTH AFRICA AND DATA FLOWS. South African Institute of International Affairs, 2018. https://saiia.org.za/wp-content/uploads/2018/04/GA_Th3_DP-Ferracane_20180411.pdf.

Wikipedia

{{cite report |last1=Ferracane |first1=Martina F |title=SOUTH AFRICA AND DATA FLOWS |publisher=South African Institute of International Affairs |date=April 2018 |url=https://saiia.org.za/wp-content/uploads/2018/04/GA_Th3_DP-Ferracane_20180411.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ferracane2018south, author = {Ferracane, Martina F}, title = {{SOUTH AFRICA AND DATA FLOWS}}, institution = {South African Institute of International Affairs}, year = {2018}, month = apr, url = {https://saiia.org.za/wp-content/uploads/2018/04/GA_Th3_DP-Ferracane_20180411.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }