By Micheal Onoja Okpotu
The concept of data sovereignty where the government is in full control of every data generated and stored across its borders is very significant and multifaceted in nature.
Today, Africa is caught between the dangers of data colonization and the potential of data-driven progress in the era of digital domination. The ethical ramifications of data ownership, control, and governance must be addressed immediately by the continent as interest in African data grows internationally.
Data is the new oil they say, —but unlike oil, its extraction, replication, and use require no pipelines, only permissions.
For Africa, this has created an urgent paradox: the continent generates a vast amount of valuable data, yet most of it is stored, processed, and monetized outside its borders. The principle that data is subject to the laws and governance structures of the nation where it is collected, is no longer a theoretical concept for Africa; it is a socio-political imperative.
The question of who owns or controls African’s data is very complicated, this control is not only considerable but key in today's rapidly advancing digital business arena. Improper handling of this invaluable asset can lead to dire consequences, particularly in the absence of robust protective mechanisms. It is a general concord that it is about economic independence and self-determination. It is about ensuring that African businesses, governments, and citizens have the power to control their digital assets, shape their own ecosystems, set and manage the terms for technology that impacts their lives.
With over 60% of Africa’s population under 25 and digital adoption surging, the stakes could not be higher. Yet, too often, our data is stored on foreign servers, our infrastructure is built by outsiders, and our innovation pipelines are shaped by external interests.
This is not just a missed opportunity, it is a strategic vulnerability that threatens Africa’s long-term prosperity and security.
A very large part of African generated data is controlled by foreign technology companies who often collect, store and monetize these data while allowing a flow back of profits to the countries of origin creating imbalance which ends up raising concerns on equitable growth and even exploitation.
Even though several of the African nations are beginning to wake up from their sleep to understand the value of data, boardrooms are putting measures in the creation and updating of laws and regulations which leads to data protection and usage, emphasizing strongly on national interest.
The argument on data sovereignty involves not only the nations but individuals as well, important and personal information of its citizens can also be monetized without their consent which in turn can bring about the questioning of individual rights and privacy in today’s digital age.
Data sovereignty is dependent on three crucial components known as the "The Power Trio": Authority, Bounds, and Compliance. This means that it starts with the governments and individuals’ management of these data generated from their respective borders, making sure that their practice is in agreement with the local regulations in terms of data compilation, retention and use. The second component, denotes the limitations applied to data storage and transfer. In a world where data can easily cross borders, digital sovereignty determines the physical locations where data can be housed or moved. Numerous nations enforce strict domestic data storage laws.
As for compliance, the obligation that businesses and individuals have to adhere to local data-related regulations could encompass legal requirements about data protection, privacy and cybersecurity. Any breach of these laws could lead to severe monetary fines and legal ramifications.
The growing importance of data sovereignty can never be over emphasis as the digital transformation sweeping across Africa has led to a rapid expansion of cloud adoption, e-commerce, financial technology (fintech) and artificial intelligence. As businesses and governments migrate operations online, the volume of sensitive data being processed, stored and transferred across borders has skyrocketed. As such, African countries need to put their heads together to ensure the achievements of its economic growth and dependence, cybersecurity, privacy and protection and alignment of regulations.
Establishing a strong data sovereignty law, African nations will be able to retain control and ownership of its data as well as using it as strategic assets to promote the nation's growth in its economy and domestic innovation also create more job opportunities, Together the nations can put more measures in place to improve national security and develop strategic protocol that fits its localization for cybersecurity which in turn reduces vulnerability at every loose end, the citizens will not be left out as this sovereignty will also bring about a framework for consent and data usage, allowing them have a say in how their data is used and regulatory alignment will also empower and strengthen the negotiation power of the nations on issues that concern data governance all around the globe.
However, while it is important that the sovereignty of data in Africa can bring a lot of great growth and even reduce its vulnerability among many other benefits, it is also of essence that we dive into the challenges that need to be addressed.
Infrastructure limitations: A lot of African countries do not have the data center capacity to support full-scale data localization. Investments in secure, scalable cloud infrastructure are crucial to making data sovereignty a reality.
Cross-border data regulations: Africa’s digital economy is increasingly interconnected, with businesses operating across multiple countries. A fragmented approach to data sovereignty could hinder regional integration and trade. In Nigeria for instance, Under Section 41 of the NDPA, a data controller or processor in Nigeria may transfer personal data to another country only if the recipient is subject to a law, binding corporate rules, a code of conduct, or contractual clauses that afford an adequate level of protection.
Section 41 of NDPA also provides the general basis for international transfer of personal data Balancing security and innovation Strict regulations should not stifle innovation. Governments must ensure that data sovereignty policies support, rather than hinder, digital entrepreneurship and foreign investment.
Capacity building: Data sovereignty requires more than just regulation – it demands a skilled workforce. African countries need to invest in local talent to handle, manage and secure data. This will in turn contribute to the success of these initiatives. For these local talents to handle such task training must be carried out, technology development, and policy implementation to ensure data is used responsibly and ethically, while upholding the principles of data sovereignty.
After all these reviews it is only right that African countries learn from the leading countries like the US having various data protection laws, including regulations regarding personal information and data security, Canada with data protection laws like the Personal Information Protection and Electronic Documents Act (PIPEDA). The UK has data protection laws in line with the GDPR, with specific regulations for certain sectors like financial institutions. The EU's General Data Protection Regulation (GDPR) sets high standards for data protection and privacy across the region, Japan with data protection laws and regulations, particularly regarding the handling of personal information among many others.
GDPR and PIPL offer comprehensive rights like access, deletion, correction, and portability.
Most frameworks also include requirements for organizational accountability and penalties for non-compliance, demonstrating a global push toward prioritizing data privacy and empowering individuals to control their personal data.
In conclusion, for African nations, data sovereignty is a measure for defense as well as an open door to build a competitive and self-sufficient digital economy. This can only be achieved by developing comprehensive data governance frameworks, investing in local infrastructure and fostering regional co-operation, Africa can lead the way in shaping Africa’s digital future.
However, all these lies in the hands of not only the Government, business and technology providers must come together to create an environment where data sovereignty empowers security, compliance and even innovation. With a well calculated approach, African Nations can ensure that all data generated from across its borders serves its citizens, its economy and ambition for a well empowered digital future.
Michael wrote from Abuja via: info@michaelonoja.com
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