Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Icasa's fingerprint Sim plan runs into major telco resistance - Nomvuyiso Batyi, CEO of the Association of Comms & Technology

      Icasa’s fingerprint Sim plan runs into major telco resistance

      30 October 2026
      Why the JSE is keeping its AI agents on a short leash - Alicia Greenwood

      Why the JSE is keeping its AI agents on a short leash

      30 October 2026
      Free Office, free Photoshop: AI is breaking Big Tech's business model

      Free Office, free Photoshop: AI is breaking Big Tech’s business model

      30 October 2026
      Crypto's biggest heist exposes the weak link in exchange security

      Crypto’s biggest heist exposes the weak link in exchange security

      30 October 2026
      Dis-Chem's earnings slide as its tech spending doubles

      Dis-Chem’s earnings slide as its tech spending doubles

      30 October 2026
    • World
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
    • In-depth
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
    • TCS
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Enterprise software » The data sovereignty rules African and EU firms can’t ignore

    The data sovereignty rules African and EU firms can’t ignore

    Promoted | BBD on why data residency and sovereignty now sit at the centre of cloud architecture.
    By BBD2 July 2026
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    The data sovereignty rules African and EU firms can't ignore - BBD Software

    Cloud platforms have become the primary building block for how organisations build, scale and operate digital services. But as data flows across geographical boundaries, questions of where it lives, who can access it and which laws govern it have moved from niche compliance concerns to central architectural decisions.

    For organisations spanning Europe and South Africa, data residency and sovereignty are already core to cloud architecture, risk management and regulatory strategy. The rest of the African continent, now waking up to the power of the cloud, faces the same reckoning.

    The shift towards distributed systems is accelerating the challenge. Gartner predicted that by 2025, 75% of enterprise-generated data would be created and processed outside traditional centralised data centres, driven by cloud, edge computing and AI workloads. As data decentralises, managing residency and sovereignty grows more complex — and regulatory scrutiny is intensifying, from GDPR and the Schrems II ruling in Europe to Popia and emerging frameworks across Africa.

    Residency vs sovereignty vs localisation

    For CIOs and CTOs, the implication is clear: data sovereignty is no longer a compliance afterthought but a core design decision.

    Residency vs sovereignty vs localisation — the terms are often used interchangeably but describe different things:

    • Data residency is where data is physically stored. Organisations may choose locations for operational reasons, but legal requirements often dictate where certain categories of data must reside. Cloud providers increasingly let organisations select where storage and processing occur.
    • Data sovereignty is the legal authority that governs data. Even a global company’s data remains subject to the laws of the country in which it is stored — a critical point when third-party providers handle the data or governments have legal authority to request access.

    Data localisation is the strictest form: governments require certain data to remain within national borders, sometimes with restrictions on processing or remote access. Though not universally applied, localisation is becoming more visible in financial services, telecommunications and the public sector.

    The EU: high regulation, high enforcement

    Europe has one of the most mature regulatory environments for data sovereignty. GDPR sets strict rules on how personal data is collected, processed and transferred, and requires that cross-border transfers offer protection equivalent to EU standards — through mechanisms such as standard contractual clauses and transfer impact assessments introduced after Schrems II reshaped EU-US transfers.

    Serious violations can draw fines of up to €20-million or 4% of global annual turnover, whichever is higher. Emerging frameworks such as the EU Data Act and AI Act are raising expectations further around transparency, access governance and the responsible use of AI training data.

    Africa: strengthening but fragmented

    African data protection regulation is evolving fast. More than 35 African countries have now enacted national data protection laws. South Africa’s Protection of Personal Information Act (Popia), Nigeria’s Data Protection Act and Kenya’s Data Protection Act are among the most influential frameworks shaping how organisations handle personal data and cross-border transfers.

    Unlike the EU’s unified regime, though, Africa’s landscape remains fragmented, with each country setting its own rules on residency, transfers and oversight. For multinationals, that means residency decisions must account for several regulatory regimes at once.

    “Because of the proximity of nations within the African region, the collaborative effort in cross-border business, and the growing proliferation of cloud on the continent, it will be interesting to see how these data protection laws are not only tested, but enacted as the continent takes its seat as a global citizen,” said BBD CIO and head of cloud managed services Tony van der Linden.

    Delivery location is increasingly part of the conversation too: organisations must weigh not only where data is stored, but where the teams building and operating those systems sit. This is one reason South Africa has emerged as a trusted delivery location for international technology services, combining Popia’s protections, a mature financial and regulatory environment and close time-zone alignment with Europe — letting organisations expand engineering capacity while keeping oversight of data governance and compliance.

    The hidden risks of getting it wrong

    Residency decisions are often treated as infrastructure details, but the risks are far-reaching:

    • Regulatory penalties, particularly under GDPR
    • Operational disruption if data cannot legally cross borders during outages or incidents
    • Vendor lock-in where providers lack compliant regional infrastructure
    • Foreign jurisdiction access, where governments may legally compel providers to disclose data
    • AI compliance challenges when training models on cross-border datasets
    • Loss of customer trust when organisations cannot explain where data resides

    Designing for sovereignty

    Meeting sovereignty requirements does not mean abandoning global cloud platforms — it means thoughtful architecture. Key approaches include:

    • Region-specific deployments: Run workloads in approved jurisdictions or local cloud regions wherever possible
    • Separated storage, processing and access layers: Keep sensitive data in-country while anonymised analytics or metadata processing happen elsewhere
    • Encrypt everything: At rest, in transit and in use, with customer-managed keys
    • Zero-trust access controls: Identity-based governance so only authorised individuals reach sensitive data, reducing cross-border and third-party risk
    • Sovereignty-aware AI: Federated learning or local training pipelines let models learn without centralising sensitive data across borders

    Disaster-recovery environments need the same care, so failover systems do not move regulated data into non-compliant jurisdictions.

    Practical steps for CIOs and CTOs

    Sovereignty should become a standard part of platform governance. Practical actions include mapping how data flows across jurisdictions, identifying regulated data categories, validating provider regions and compliance certifications, running regular sovereignty impact assessments, ensuring AI workloads respect locality constraints and enforcing strong data-lifecycle governance.

    Compliance as strategic advantage

    More than 160 countries now have some form of data protection legislation. Organisations that treat residency and sovereignty as architectural fundamentals reduce regulatory risk, build trust with customers and regulators, and create platforms that operate confidently across jurisdictions.

    “As cloud adoption accelerates and AI-driven systems become more prevalent, the sovereignty of data will increasingly shape how digital platforms are designed, deployed and governed,” said Van der Linden.

    The message for technology leaders is clear: data sovereignty is no longer just about compliance. It is about building resilient, responsible systems that operate securely at global scale.

    About BBD
    A leading international provider of bespoke software solutions, BBD’s four decades of technical and domain expertise spans the education, financial services, insurance, gaming, telecommunications and public sectors. BBD employs over 1 200 highly skilled, motivated and experienced IT professionals, curating flexible teams from our hubs across South Africa, India, Netherlands, Portugal and the UK. BBD is a 51% black-owned and level-1 B-BBEE partner, with a 135% B-BBEE recognition. For more, visit www.bbdsoftware.com.

    • Read more articles by BBD on TechCentral
    • This promoted content was paid for by the party concerned
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    BBD BBD Software Tony van der Linden
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleForget job losses – most firms haven’t switched AI on yet
    Next Article Ispa pushes back on plan to block offshore gambling sites

    Related Posts

    Choosing the right AI path for banks and large enterprises - Matthew Barnard BBD

    Choosing the right AI path for banks and large enterprises

    29 October 2026

    Human-centred design: the business case for simpler enterprise software

    6 October 2026
    Regulated systems need more automation, not less - BBD Software

    Regulated systems need more automation, not less

    27 August 2026
    Add A Comment

    Comments are closed.

    Company News
    How to protect your business from digital banking scams and fraud - Standard Bank

    How to protect your business from digital banking scams and fraud

    30 October 2026
    Paratus continues to reshape connectivity in Namibia

    Paratus continues to reshape connectivity in Namibia

    29 October 2026
    Rate hikes threaten a household recovery built on cheaper credit - John Gellatly

    Rate hikes threaten a household recovery built on cheaper credit

    29 October 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Icasa's fingerprint Sim plan runs into major telco resistance - Nomvuyiso Batyi, CEO of the Association of Comms & Technology

    Icasa’s fingerprint Sim plan runs into major telco resistance

    30 October 2026
    Why the JSE is keeping its AI agents on a short leash - Alicia Greenwood

    Why the JSE is keeping its AI agents on a short leash

    30 October 2026
    Free Office, free Photoshop: AI is breaking Big Tech's business model

    Free Office, free Photoshop: AI is breaking Big Tech’s business model

    30 October 2026
    Crypto's biggest heist exposes the weak link in exchange security

    Crypto’s biggest heist exposes the weak link in exchange security

    30 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter