The General Data Protection Regulation (GDPR) came into effect in 2018 and quickly became the ‘gold-standard’ for data protection globally. While it is an EU mandate, its impact is global, and Africa is no exception.
In practice, any African organisation that offers goods or services to or monitors the behaviour of EU data subjects is required to comply with the GDPR. This has significant implications for African businesses, especially those in the digital economy.
In this article, we will explore the implications of the GDPR for Africa.
Compliance is Imperative For African businesses, compliance with the GDPR is not just a legal requirement but a strategic necessity. Non-compliance with the GDPR risks disrupting the USD$14 billion in annual exports from Africa’s digital economy to the EU. Moreover, the penalties for non-compliance are severe, with fines of up to €20 million or 4% of an organisation’s annual worldwide turnover.
Strategic Advantage While the GDPR presents a challenge for African businesses, it also presents an opportunity. The GDPR is currently deemed to be the regulatory “gold standard” for the protection of personal data. Therefore, companies with adequate data protection frameworks will have a distinct advantage in their ability to crowd in investment and advance trade with larger consumer markets.
Strengthening Partnerships Compliance with the GDPR creates a rare opportunity for African countries to establish and strengthen strategic partnerships with the EU. By adopting the GDPR standards, African countries can demonstrate their commitment to data protection and enhance their credibility in the global market.
Challenges to Compliance Despite the benefits of compliance, African businesses face several challenges. These include the lack of technical expertise, high cost of compliance, and weak regulatory frameworks in some African countries. Addressing these challenges is critical in ensuring that African businesses can benefit from the GDPR.
In conclusion, the GDPR is indeed a game-changer for data protection in Africa. While it presents significant challenges, it also offers a unique opportunity for African businesses to enhance their credibility and establish strategic partnerships. By embracing the gold standard of data protection, Africa can position itself as a leader in the global digital economy.