Why Data and AI Governance Are Central to Africa’s Digital Trade Ambitions

By CIPESA Writer |

Digital technologies are changing how African businesses trade and connect across borders. However, digital trade on the continent remains hugely constrained, including by regulatory fragmentation, infrastructure gaps, and bureaucratic hurdles. How then should African countries leverage the growing digitalisation and emerging technologies such as Artificial Intelligence (AI) to boost their digital economies?

According to the World Trade Organization (WTO), in 2024, Africa’s exports of digitally delivered services (DDS) were valued at USD 41.3 billion, representing just one percent of global exports. Nonetheless, the continent’s prospects are promising. The WTO and the World Bank project that greater use of digital technologies could boost Africa’s digital services exports by USD 74 billion between 2023 and 2040, doubling Africa’s share of global exports.

Evidently, if African countries do not address existing barriers and take decisive action, the continent risks becoming an even more marginal player in the global digital trade ecosystem. How to bridge the barriers and leverage data and AI to shape digital trade and Africa’s economic future was at the centre of discussions at the African Economic Research Consortium (AERC) Summit 2025, held in Nairobi, Kenya, last December.

A panel on digital trade and the governance of digital and AI economies, where the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) featured, stressed that, although frameworks such as the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol are a step in the right direction, they could fail to significantly grow digital trade if member states lack enabling data and AI governance systems and practices.

Today, DDS account for approximately 35% of Africa’s total services export value, and have been rising at a double-digit rate, outpacing growth in other regions globally. However, growth in digital services trade remains uneven, concentrated in a handful of countries, mostly South Africa, Morocco, Ghana, Egypt, and Mauritius. Kenya, Nigeria and Tunisia are also notable players but with lower export values than the leading African countries.

Regional initiatives such as the AfCFTA Digital Trade Protocol can help to expand digital trade beyond domestic markets, including in countries that currently lag. The protocol, which was adopted two years ago, aims to harmonise rules for cross-border digital trade across Africa, including on electronic transactions, data governance, and digital payments. Meanwhile, the African Guidelines on Integrating Data Provisions in Protocols on Digital Trade of 2024, emphasise harmonised data governance as an enabler of secure and inclusive digital trade across Africa.

The African Union Data Policy Framework (AUDPF) similarly provides for interoperable data ecosystems across the continent, that are enabled by harmonised laws that support both innovation and rights protection. The various regional efforts support the dream of a Digital Single Market by 2030, as envisaged by the Africa Digital Transformation Strategy of the African Union.

The Galore of Barriers

The region currently lacks an operational continent‑wide harmonised framework for data protection, e‑commerce regulation, digital taxation, or AI governance. This gap raises compliance costs and presents a barrier to businesses that aim to scale operations across borders. This undermines cross‑border digital trade and data flows. Moreover, lack of regulations for paperless trade, including on electronic invoicing, e-signatures and e-contracts, presents an additional hurdle.

On the other hand, high taxes on goods, services, data, and devices drive up costs for businesses, yet several entrepreneurs struggle to access affordable digital financial services, including for effecting cross-border payments. These challenges are made worse by low internet speeds, unreliable electricity supply, as well as weak understanding of export regulations, data protection, and cybersecurity.

Addressing these barriers would offer entrepreneurs a range of benefits. Businesses can reach new customers beyond national borders without investing much in physical export infrastructure, which can reduce costs and expand their market reach. Also, interoperable digital payments can help to minimise settlement delays and overcome currency conversion hurdles.

Priorities on AI and Data Governance

Projections by a WTO 2025 report show that AI could boost the value of cross-border flows of goods and services by around 40% by 2040, due to productivity gains and lower trade costs. However, Africa’s readiness for AI regulation and uptake, particularly by small and medium enterprises, remains low. The WTO report points to AI’s potential to reduce logistics costs, overcome language barriers, ease regulatory compliance, and boost productivity.

In a March 2025 survey among firms from across the world, the most cited benefits of AI were improved trade efficiency (22%), optimised trade decision-making (14%), expanding the foreign customer base (10%), enhanced supply chain management (9%), and broader import and export product ranges (9% and 8% respectively).

How data and AI are governed is therefore key for the future of Africa’s digital economy. If African countries do not put in place robust and harmonised legislation, they will risk perpetuating patterns of the so-called “AI colonialism” in which African data and users fuel global AI markets yet their economies do not receive proportionate economic benefits. Many African countries are adopting AI in the public and private sectors but lack comprehensive AI-specific laws and governance frameworks and often rely instead on outdated laws that pre-date the current technologies.

The State of Internet Freedom in Africa 2025 report calls for human‑centred AI laws that ensure transparency in algorithms, clear accountability, and effective mechanisms for liability and redress. The report urges governments to strengthen independent AI and data oversight institutions, invest in digital infrastructure and inclusion, expand internet access, and ensure AI tools serve local languages. The report also highlights that Africa’s AI market is projected to grow from USD 4.51 billion in 2025 to USD 16.5 billion by 2030.

Africa thus urgently needs cross-border data governance frameworks that support trusted data flows, reduce fragmented national rules, and establish interoperable standards to boost regional digital trade under initiatives such as AfCFTA and the AUDPF. At the same time, investments in affordable connectivity, local cloud capacity, public digital platforms, and datasets in African languages are essential.

The Role of Civil Society and Think Tanks

The Summit discussion stressed the urgent need for research to inform policy, particularly on cross-border data flows, AI adoption, and ways for Africa to avoid new forms of dependency while getting greater value from its data and digital innovation.

Also essential is civil society engagement in monitoring the implementation of continental digital trade and data initiatives, supporting harmonisation of policies and standards, and building the capacity of policymakers, regulators, and businesses.

Actions to Grow Digital Trade in Africa

  • Embrace digital transformation and connectivity by investing in robust networks and backup systems.
  • Implement robust cyber security frameworks while ensuring effective cyber leadership and prioritising investments in cyber infrastructure, skilling, awareness.
  • Recognise data as a trade enabler by ensuring trade agreements have provisions that prevent unnecessary restrictions on data flows.
  • Harmonise data protection standards to reduce compliance costs for businesses and build trust among different stakeholders.
  • Adopt and implement Intellectual Property (IP) laws to ensure that local innovators and individuals in the region benefit.
  • Build robust digital infrastructure with a focus on Digital Public Infrastructure (DPI) and data privacy.
  • Assess and address the impact of emerging technologies like artificial intelligence, blockchain and IoT, ensuring they foster innovation and address ethical challenges.

Source: CIPESA – Policy Considerations for Enhancing Digital Trade in East Africa

How CIPESA Is Supporting Harmonised Data Governance in African Countries

By Juliet Nanfuka |

Across the world, larger amounts of data are being collected than ever before. For instance, massive volumes of data are being collected by national identity systems and mandatory SIM card registration exercises, as well as by private actors, including through online platforms and mobile devices. However, in many African countries data governance structures remain lacking, fuelling various concerns such as data breaches and surveillance.

Over the course of 2025, CIPESA has undertaken extensive work alongside the GIZ DataCipation programme and the African Union to support countries and Regional Economic Communities (RECs) to collaboratively develop data governance policies that are progressive and rights-respecting.

The various engagements, which were guided by the African Union Data Policy Framework (AUDPF), also involved building the capacity of regulators, policymakers, and other stakeholders in devising and implementing data governance policies that promote socio-economic transformation and regional integration.

Adopted in 2022, the AUDPF offers a harmonised set of principles to guide African states in governing data safely, fairly, and effectively, as it provides a continental vision for protecting personal rights, enabling cross-border data flows, unlocking socio-economic value, and fostering interoperable digital systems. CIPESA has long advocated for African countries to adopt the AUDPF as a common benchmark to guide data policies that strengthen accountability and foster trust between governments and citizens.

The inaugural capacity building workshop to build the capacity of judges and senior staff of the East African Court of Justice (EACJ) on data governance, was held in March 2025, in Kigali, Rwanda. The training aimed to enhance court officials’ understanding of the AUDPF and its implications for national and regional data governance, as well as the need for harmonised data governance policies within the East African Community (EAC).

As East Africa moves into a regional economy, the EACJ might be faced with a number of challenges in its operations. There are cases in national courts related to data governance, and if the EACJ is not aware of what is going on in the digital space, it might not be able to handle such cases should they come before the court.” Hon. Justice Nestor Kayobera,  President of the EACJ

This was followed by another training in April 2025 in Kampala, Uganda for members of the East African Legislative Assembly (EALA). At a time when the eight-member regional bloc was developing a harmonised data policy legislation, this training strengthened the capacity of members and staff of the regional parliament in the areas of data governance, data protection, and related legislative and policy issues.

The Southern African Development Community (SADC) has similarly embarked on developing a Regional Data Governance Framework. In September, CIPESA supported training for more than 50 regulators and policymakers from 16 SADC countries in Madagascar, on harmonising data protection frameworks to support cross-border data flows and regional trade.

At the country level, CIPESA has supported capacity development as well as data governance policy development. In July 2025, a consultative workshop in the capital Maseru brought together more than 60 stakeholders from the Lesotho government, civil society, academia, and the private sector to review the country’s draft Data Management Policy and align it with the AUDPF. The workshop developed a roadmap towards building a more progressive data governance policy framework, with various revisions being made to the Data Management Policy. In October, the policy was validated at a multi-stakeholder engagement led by the Ministry of Information, Communications, Science, Technology and Innovation, alongside the AU, GIZ, and CIPESA.

In November 2025, CIPESA supported capacity building in Liberia for government ministries, civil society organisations, and private sector representatives at a two-day workshop in Monrovia. The engagement, which was convened by the Ministry of Posts and Telecommunications, CIPESA, and the AU, explored how data could support Liberia’s digital transformation and the need to align the country’s laws and policies with continental and global frameworks.

Additionally, CIPESA is supporting the government of Liberia to develop a Data Governance Policy that is aligned to the AUDPF. In this regard, a separate two-day multi-stakeholder consultation was held to inform the content of the prospective policy, which is anticipated to be completed early in 2026. The consultation marked a critical step in Liberia’s ongoing efforts to establish a coherent national framework for data governance, protection, and utilisation.

Also in November, CIPESA supported capacity building in Uganda for 81 policymakers, regulators, civil society, and private sector actors. In partnership with the Ministry of ICT and National Guidance, the Personal Data Protection Office, GIZ and AU, in Kampala, Uganda. Participants explored foundational elements of data governance, including data infrastructure, data value creation, standards, trust mechanisms, and institutional arrangements. Participants discussed regulatory approaches, institutional structures, and capacity-building strategies necessary for Uganda to harness data responsibly and efficiently.

Meanwhile, various global settings have also served as platforms to further deliberate and contribute to the global discourse on data governance in Africa. At the June 2025 Internet Governance Forum held in Norway, a collaborative session hosted by CIPESA, GIZ, and The Republic of The Gambia saw discussions on how fragmented national regulations and inconsistent privacy and cybersecurity standards pose challenges to regional and global cooperation.

Similarly at the September 2025 Forum on Internet Freedom in Africa (FIFAfrica25) hosted by CIPESA, various sessions discussed data governance as central to Africa’s digitalisation efforts. Across multiple sessions, speakers underscored the growing recognition that how data is governed will shape the continent’s democratic, economic, and social futures. Notably, the European Union (EU) Delegation to Namibia emphasised its continued commitment to investing in digital infrastructure, strengthening democratic governance, and advancing a human-centric digital transformation through the Global Gateway strategy.

Applications are Open for a New Round of Africa Digital Rights Funding!

Announcement |

The Collaboration on International ICT Policy for East and Southern Africa (CIPESA) is calling for proposals to support digital rights work across Africa.

This call for proposals is the 10th under the CIPESA-run Africa Digital Rights Fund (ADRF) initiative that provides rapid response and flexible grants to organisations and networks to implement activities that promote digital rights and digital democracy, including advocacy, litigation, research, policy analysis, skills development, and movement building.

 The current call is particularly interested in proposals for work related to:

  • Data governance including aspects of data localisation, cross-border data flows, biometric databases, and digital ID.
  • Digital resilience for human rights defenders, other activists and journalists.
  • Censorship and network disruptions.
  • Digital economy.
  • Digital inclusion, including aspects of accessibility for persons with disabilities.
  • Disinformation and related digital harms.
  • Technology-Facilitated Gender-Based Violence (TFGBV).
  • Platform accountability and content moderation.
  • Implications of Artificial Intelligence (AI).
  • Digital Public Infrastructure (DPI).

Grant amounts available range between USD 5,000 and USD 25,000 per applicant, depending on the need and scope of the proposed intervention. Cost-sharing is strongly encouraged, and the grant period should not exceed eight months. Applications will be accepted until November 17, 2025. 

Since its launch in April 2019, the ADRF has provided initiatives across Africa with more than one million US Dollars and contributed to building capacity and traction for digital rights advocacy on the continent.  

Application Guidelines

Geographical Coverage

The ADRF is open to organisations/networks based or operational in Africa and with interventions covering any country on the continent.

Size of Grants

Grant size shall range from USD 5,000 to USD 25,000. Cost sharing is strongly encouraged.

Eligible Activities

The activities that are eligible for funding are those that protect and advance digital rights and digital democracy. These may include but are not limited to research, advocacy, engagement in policy processes, litigation, digital literacy and digital security skills building. 

Duration

The grant funding shall be for a period not exceeding eight months.

Eligibility Requirements

  • The Fund is open to organisations and coalitions working to advance digital rights and digital democracy in Africa. This includes but is not limited to human rights defenders, media, activists, think tanks, legal aid groups, and tech hubs. Entities working on women’s rights, or with youth, refugees, persons with disabilities, and other marginalised groups are strongly encouraged to apply.
  • The initiatives to be funded will preferably have formal registration in an African country, but in some circumstances, organisations and coalitions that do not have formal registration may be considered. Such organisations need to show evidence that they are operational in a particular African country or countries.
  • The activities to be funded must be in/on an African country or countries.

Ineligible Activities

  • The Fund shall not fund any activity that does not directly advance digital rights or digital democracy.
  • The Fund will not support travel to attend conferences or workshops, except in exceptional circumstances where such travel is directly linked to an activity that is eligible.
  • Costs that have already been incurred are ineligible.
  • The Fund shall not provide scholarships.
  • The Fund shall not support equipment or asset acquisition.

Administration

The Fund is administered by CIPESA. An internal and external panel of experts will make decisions on beneficiaries based on the following criteria:

  • If the proposed intervention fits within the Fund’s digital rights priorities.
  • The relevance to the given context/country.
  • Commitment and experience of the applicant in advancing digital rights and digital democracy.
  • Potential impact of the intervention on digital rights and digital democracy policies or practices.

The deadline for submissions is Monday, November 17, 2025. The application form can be accessed here.

Why African Languages and Knowledge Systems Matter in Online Governance

By Juliet Nanfuka |

During a multistakeholder consultation held at the Forum on Internet Freedom in Africa (2025) that took place in Windhoek, Namibia, participants called attention to the urgent need to elevate African languages and indigenous knowledge systems within global internet governance. The consultation, hosted by UNESCO and the Collaboration on International ICT Policy for East and Southern Africa (CIPESA) highlighted the urgent need for the digital ecosystem to be more representative and responsive to the realities of African users. The consultation which comprised experts from academia, artificial intelligence (AI) experts, civil society and the media took place on September 26, 2025. One of the strongest concerns raised related to the ways in which big tech companies classify African languages. It was noted that current language identification models are often inaccurate, frequently misclassifying African language datasets which has often resulted in weak or unusable models and contributed to content moderation systems that are inadequately built to address the information disorder in African digital spaces.

Opening the session, John Okande, Programme Coordinator at UNESCO highlighted the UN International Decade of Indigenous Languages (2022-2032) which provides a global mandate to protect and promote linguistic diversity. He noted that this initiative aligns with the principles of UNESCO’s Guidelines for the Governance of Digital Platforms and the UN Global Principles on Information Integrity, which both call for multi-stakeholder action to ensure technology serves all communities equitably. Okande emphasised that these global frameworks “require deliberate adaptation to Africa’s unique linguistic and cultural contexts.” Various initiatives by UNESCO to promote multilingualism in cyberspace demonstrate the value of localised interventions that safeguard freedom of expression while building community resilience including. Among these is the Social Media for 4 Peace (SM4P) global initiative aimed at building societies’ resilience to online harmful content, disinformation and hate speech, while safeguarding freedom of expression and fostering peace through social media.

The consultation also laid bare how AI and Large Language Models (LLMs) can amplify harm. LLMs sometimes provide harmful or dangerous responses due to the data they are trained on being low-quality or biased. In many cases, outsourced data trainers lack supervision, and limited regulatory frameworks to ensure ethical or safe training processes.

Many LLMs lack basic safety guardrails for African languages in comparison to English where harmful queries are often flagged and blocked. This disparity is illustrative of the persisting data inequalities in the AI ecosystem.

Tajuddeen Gwadabe, Programs and MEL Lead at Masakhane African Languages Hub noted that while languages like Hausa have tens of millions of speakers, only one dialect, often the standardised, formal variant is what gets represented online. Entire linguistic communities, such as speakers of the Sokoto dialect, are rendered invisible in digital datasets.

Participants shared similar concerns as they noted that the broader online representations of African languages tend to reflect how language is used when written, and not how languages are spoken. They noted that code-mixing, slang, tonal nuance, gestures, and layered cultural meaning are nearly impossible for AI to capture without intentional investment.

“Despite African languages having a large number of speakers, digital spaces often only represent one variant or standardised dialect. For instance, in Hausa, only the standard writing from Kano is represented, while dialects from Sokoto “are hardly ever present.”

The consultation highlighted concerns in African intellectual infrastructure which serves as the basis for knowledge creation and dissemination including the facilitation of downstream productive activities, including information production, innovation, development of products, education, community building and interaction, democratic participation, socialisation, and many other socially valuable activities.

Dr. Phathiswa Magopeni, Executive Director of the South Africa Press Council, noted the urgent need to build African intellectual infrastructure alongside efforts to elevate African languages in the digital society. She highlighted the dominance of the English language including in African policy and regulatory documents across many countries and argued that this serves to protect English, but at the cost of indigenous languages.

She noted, “We are often willing to compromise the essence of our own languages in the belief that doing so will grant us access to spaces dominated by English. Meanwhile, the speakers of English continue to protect their language.” Dr. Magopeni emphasised that many African languages lack foundational datasets across academic, scientific, legal, and technical fields that are essential for the long-term strengthening of African intellectual infrastructure.

The consultation went on to raise various dynamics about the state of the current ecosystem including on the extent to which African identity gets lost online as Africans adjust their identity to suit the limitations of digital platforms. Further, there was debate on the extent to which platforms should be compelled to adapt to African contexts with consensus reached on that fact that political will is necessary to advance African languages in digital spaces. It was noted that without policymakers prioritising local languages including in Parliament, service delivery and publicly accessible data, there will be limited improvement.

Digital Rights research and political analyst Dércio Tsandzana illustrated the case of Mozambique noting that in Parliament, some members of parliament do not effectively participate all through their mandate due to their inability to speak Portuguese which is the national language. “If we don’t have politicians or policy makers that want to change first in their countries we will not see any change (by platforms).” Tsandzana noted.

Ultimately gaps in African languages online will continue to remain a sore point for disinformation and continent moderation due to the deep-seated issues concerning data quality, the nature of language use, and the limitations of AI technology.

The consensus from the consultation was that there is a need for more collaboration between stakeholders and an ecosystem-wide approach in African AI development. It was noted that universities, particularly African language departments, hold extensive expertise on standardised linguistic forms. Meanwhile, stakeholders such as governments which hold immense amounts of public data, through to community institutions such as local radio stations reflect how languages are used today all have a role to play in contributing to how African languages are integrated in AI. Thus, big tech companies need to work more cohesively with a broader spectrum of stakeholders.

Further, there was agreement in the urgency of populating the internet with more African content including  stories, proverbs, folklore, and history. As AI continues to learn using whatever data is available, African content must be present and accurate. Thus there is a need to invest in indigenous language content development, strengthen African intellectual infrastructure, and to also demand accountability from global platforms. These efforts require the development of practical and context-specific action plans for policymakers and tech platforms to realise African indigenous language and knowledge systems in the digital ecosystem.

Digital Public Infrastructure in Africa: A Looming Crisis of Equitable Access, Digital Rights, and Sovereign Control

Digital Public Infrastructure in Africa: A Looming Crisis of Equitable Access, Digital Rights, and Sovereign Control
CCTV system in Kampala, Uganda. REUTERS/James Akrena (2019)

By Brian Byaruhanga

In June 2025, Uganda suspended its Express Penalty Scheme (EPS) for traffic offences, less than a week after its launch, citing a “lack of clarity” among government agencies. While this seemed like a routine administrative misstep, it exposed a more significant issue: the brittle foundation upon which many digital public infrastructures (DPI) in Africa are being built. DPI refers to the foundational digital systems and platforms, such as digital identity, payments, and data exchange frameworks, which form the backbone of digital societies, similar to how roads or electricity function in the physical world

This EPS saga highlighted implementation gaps and illuminated a systemic failure to promote equitable access, public accountability, and safeguard fundamental rights in the rollout of DPI.

When the State Forgets the People

The Uganda EPS, established under section 166 of the Traffic and Road Safety Act, Cap 347, serves as a tech-driven improvement to road safety. Its  goal is to reduce road accidents and fatalities by encouraging better driver behaviour and compliance with traffic laws. By allowing offenders to pay fines directly without prosecution, the system aims to resolve minor offences quickly and to ease the burden on the judicial system. Challenges faced by the manual EPS system, which the move to the automated system aimed to eliminate, include corruption (reports of deleted fines, selective enforcement, and theft of collected penalties). 

At the heart of the EPS was an automated surveillance and enforcement system, which used Closed Circuit Television (CCTV) cameras and license plate recognition to issue real-time traffic fines. This system operated with almost complete opacity. A Russian company, Joint Stock Company Global Security, was reportedly entitled to 80% of fine revenues, despite making minimal investment, among other significant legal and procurement irregularities. There was a notable absence of clear contracts, publicly accessible oversight mechanisms, or effective avenues for appeal. Equally concerning, the collection and storage of extensive amounts of sensitive data lacked transparency regarding who had access to it.

Such an arrangement represented a profound breach of public trust and an infringement upon digital rights, including data privacy and access to information. It illustrated the minimal accountability under which foreign-controlled infrastructure can operate within a nation. This was a data-driven governance mechanism that lacked the corresponding data rights safeguards, subjecting Ugandans to a system they could neither comprehend nor contest.

This is Not an Isolated Incident

The situation in Uganda reflects a widespread trend across the continent. In Kenya, the 2024 Microsoft–G42 data centre agreement – announced as a partnership with the government to build a state-of-the-art green facility aimed at advancing infrastructure, research and development, innovation, and skilling in Artificial Intelligence (AI) –  has raised serious concerns about data sovereignty and long-term control over critical digital infrastructure. 

In Uganda, the National Digital ID system (Ndaga Muntu) became a case study in how poorly-governed DPI deepens structural exclusion and undermines equitable  access to public services. A 2021 report by the Centre for Human Rights and Global Justice found that rigid registration requirements, technical failures, and a lack of recourse mechanisms denied millions of citizens access to healthcare, education, and social protection. Those most affected were the elderly, women, and rural communities. However, a 2025 High Court ruling ignored evidence and expert opinions about the ID system’s exclusion and implications for human rights. 

Studies estimate that most e-government projects in Africa end in partial or total failure, often due to poor project design, lack of infrastructure, weak accountability frameworks, and insufficient citizen engagement. Many of these projects are built on imported technologies and imposed models that do not reflect the realities or governance contexts of African societies.

The clear pattern is emerging across the continent: countries  are integrating complex, often foreign-managed or poorly localised digital systems into public governance without establishing strong, rights-respecting frameworks for transparency, accountability, and oversight. Instead of empowering citizens, this version of digital transformation risks deepening inequality, centralising control, and undermining public trust in government digital systems.

The State is Struggling to Keep Up

National Action Plans (NAPs) on Business and Human Rights, intended to guide ethical public–private collaboration, have failed to address the unique challenges posed by DPI. Uganda’s NAP barely touches on data governance, algorithmic harms, or surveillance technologies. While Kenya’s NAP mentions the digital economy, it lacks enforceable guardrails for foreign firms managing critical infrastructure. In their current form, these frameworks are insufficiently equipped to respond to the complexity and ethical risks embedded in modern DPI deployments.

Had the Ugandan EPS system been subject to stronger scrutiny under a digitally upgraded NAP, key questions would likely have been raised before implementation:

  • What redress exists for erroneous or abusive fines?
  • Who owns the data and where is it stored?
  • Are the financial terms fair, equitable, and sovereign?

But these questions came too late.

What these failures point to is not just a lack of policy, but a lack of operational mechanisms to design, test and interrogate DPI before roll out. What is needed is a practical bridge that responds to public needs and enforces human rights standards.

Regulatory Sandboxes: A Proactive Approach to DPI

DPI systems, such as Uganda’s EPS, should undergo rigorous testing before full-scale deployment. In such a space, a system’s logic, data flows, human rights implications, and resilience under stress are collectively scrutinised before any harm occurs. This is the purpose of regulatory sandboxes – platforms that offer a structured, participatory, and transparent testbed for innovations. 

Thus, a regulatory sandbox could have revealed and resolved core failures of Uganda’s EPS before rollout, including the controversial revenue-sharing arrangement with a foreign contractor.

How Regulatory Sandboxes Work: Regulatory sandboxes are useful for testing DPI systems and governance frameworks such as revenue models in a transparent manner, enabling stakeholders to examine the model’s fairness and legality. This entails publicly revealing financial terms to regulators, civil society, and the general public. Secondly, before implementation, simulated impact analyses can also highlight possible public backlash or a decline in trust. Sandboxes can be used for facilitating pre-implementation audits, making vendor selection and contract terms publicly available, and conducting mock procurements to detect errors.  By defining data ownership and access guidelines, creating redress channels for data abuse, and supporting inclusive policy reviews with civil society, regulatory sandboxes make data governance and accountability more clear.

This shift from reactive damage control to proactive governance is what regulatory sandboxes offer. If Uganda had employed a sandbox approach, the EPS system might have served as a model for ethical innovation rather than a cautionary tale of rushed deployment, weak oversight, and lost public trust.

Beyond specific systems like EPS or digital ID, the future of Africa’s digital transformation hinges on how digital public infrastructure is conceived, implemented, and governed. Foundational services, such as digital identity, health information platforms, financial services, surveillance mechanisms, and mobility solutions, are increasingly reliant on data and algorithmic decision-making. However, if these systems are designed and deployed without sufficient citizen participation, independent oversight, legal safeguards, and alignment with the public interest, they risk becoming tools of exclusion, exploitation, and foreign dependency. 

Realising the full potential of DPIs as a tool for inclusion, digital sovereignty, and rights-based development demands urgent and deliberate efforts to embed accountability, transparency, and digital rights at every stage of their lifecycle.

Photo Credit – CCTV system in Kampala, Uganda. REUTERS/James Akena (2019)