IT in Manufacturing


How South Africa’s cloud policy fuels digital leadership

August 2025 IT in Manufacturing

The introduction of the National Data and Cloud Policy just over a year ago signalled a major step for South Africa in terms of digital transformation. While on the surface it may seem to be yet another compliance hurdle, it represents a powerful opportunity for South Africa to drive digital leadership. By localising cloud data storage, processing and infrastructure, it significantly enhances data sovereignty, which in turn ensures that data is governed by local laws, enabling the country to protect sensitive information, support local innovation and build a trusted, resilient digital economy.

Data as a source of competitive advantage

Data sovereignty is increasingly becoming global best practice as governments and industries worldwide recognise the need to keep data within their sovereign borders. Many countries have begun to introduce policies or frameworks that prioritise data sovereignty as this principle is increasingly seen as the foundation for responsible and secure data security.

One of the major reasons for this, beyond increasing concern for cybersecurity and data privacy, is the fact that data represents significant intellectual property in a digital world and protecting this is essential for maintaining strategic competitive advantage. Cloud solutions represent the aggregation point for large datasets and these form the basis for new technologies such as artificial intelligence. To develop a leading role, these datasets must be maintained inside our geographic territory.

“Data sovereignty is critical for managing sensitive information, but it is also important to protect local intellectual property (IP). Cloud sovereignty contains data within sovereign borders, avoiding the potential of a leaking bucket of IP. It’s controlled and managed within South African sovereign structures. This also helps us to position the country as a digital leader by investing in local infrastructure and building a thriving digital ecosystem,” says Eckart Zollner, head of business development at Digital Parks Africa.

Tackling the complexities

While cloud first is seen as the preferred policy, it is often not a simple or straightforward goal to achieve. Migrating legacy systems to a cloud environment is highly complex, especially for larger enterprises and governments.

Moving to the cloud involves not only the operational expense of paying for the service, there could be a significant expense attached to the migration. A phased approach is generally preferred, but this adds layers of complexity that need to be carefully considered. In addition, any hidden, underestimated or unanticipated costs can quickly erode the benefits.

“Planning, understanding your equipment and ensuring that critical systems are always available is mission critical in any migration. It’s important to carefully assess the landscape and understand your own infrastructure, cloud cost structures and what value proposition or efficiencies you are looking to achieve. You also need to remember that operational realities like power consumption, are a key consideration, not only for cost but also for long-term sustainability, whether you make use of the cloud, on-premises infrastructure or a hybrid solution,” says Wiaan Vermaak, group chief commercial officer at Digital Parks Africa.

A source of strategic advantage

While South Africa’s cloud sovereignty policy is in essence about compliance, it requires that data remains within the country, which means that infrastructure needs to be hosted locally, which will foster digital innovation from cloud providers. Global hyperscalers will be required to invest in the country to remain relevant, but it is also an opportunity for local industry to grow, innovate and facilitate greater competition, thereby directly supporting job creation and skills development in South Africa. Keeping sensitive data and intellectual property within South Africa also safeguards innovation.

The National Data and Cloud Policy emphasises the need for interoperability and mandates that cloud providers build open, portable data structures, which prevents vendor lock-in and ensures customers can retain ownership of their data.

“This is a real opportunity to innovate within the playing field, allowing smaller or newer cloud providers to compete alongside the global giants. It is a catalyst for positioning South Africa to develop a robust, competitive cloud sector that supports local innovation, enables global integration and protects national interests,” says Vermaak.

Leveraging the opportunity

When it comes to cloud adoption, businesses need to study the National Data and Cloud Policy, as well as researching cloud capabilities from various providers, including local ones. It is essential to assess existing infrastructure, understand the costs involved and define clear objectives for cloud migration, including expected business outcomes.

“You need to look at it pragmatically to understand whether a full migration, a hybrid approach, or even remaining on premises will be the best fit.You also need to decide whether a phased approach or a hybrid model will fit your value proposition, better mitigate risk and manage transition costs,” adds Vermaak.

Although the policy and compliance requirements present challenges, they also create a foundation for growth, leadership and innovation. Sovereignty and interoperability offer real competitive advantages, protecting IP and enabling innovation.

“We want to develop ourselves into a position of digital leadership in our region and cloud sovereignty allows us to do that because our data remains contained. South African businesses that plan well and think strategically can turn what could be seen as a compliance hurdle into an opportunity for sustainable growth and digital transformation,” Zollner concludes.

For more information contact Carien Steenkamp, Digital Parks Africa, +27 72 218 6627, [email protected], www.dpa.host




Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Prefabricated data centres for an AI-focused future at the edge
Schneider Electric South Africa IT in Manufacturing
As AI technologies continue to advance, data centres are being pushed to the edge, reshaping their operations to meet daily demands. To meet the relentless demands of AI workloads at the edge, prefabricated data centre solutions offer a scalable, efficient and fast alternative to traditional builds.

Read more...
Quantum computing and its impact on data security: a double-edged sword for the digital age
IT in Manufacturing
Quantum computing is poised to redefine the boundaries of data security, offering groundbreaking solutions while threatening modern encryption’s foundations. For third-party IT providers, this duality presents both a challenge and an opportunity to lead organisations through one of the most significant technological transitions in decades.

Read more...
Next-generation road-legal race car.
Siemens South Africa IT in Manufacturing
Siemens Digital Industries Software has announced that Briggs Automotive Company (BAC) will move to the Siemens Xcelerator portfolio of industry software and use it to develop the next generation of its single-seater road-legal race car, Mono.

Read more...
Cybersecurity at a crossroads
IT in Manufacturing
here’s a growing unease in boardrooms, data centres and cabinet offices across South Africa. It’s not just about economic headwinds or political uncertainty, it’s about something quieter, more technical and yet just as dangerous - the rising tide of cyber threats.

Read more...
Enabling a sustainable industrial organisation
IT in Manufacturing
This article explains the top sustainability trends and key actions that you can leverage to become a more sustainable organisation.

Read more...
Navigating discrete manufacturing in South Africa through digitalisation
IT in Manufacturing
South Africa’s discrete manufacturing sector faces mounting pressure from global competition, fragmented supply chains and outdated infrastructure. In this complex environment, digitalisation is a critical lever for survival, resilience and growth.

Read more...
Africa’s pragmatic approach to AI and how data centres are enabling it
Schneider Electric South Africa IT in Manufacturing
In Africa, the current AI momentum is driven by a fundamental need, building a resilient digital infrastructure that addresses the real-world challenges of the continent’s communities.

Read more...
World first simulation of error-correctable quantum computers
IT in Manufacturing
Quantum computers still face a major hurdle on their pathway to practical use cases, their limited ability to correct the arising computational errors. In a world first, researchers from Chalmers University of Technology in Sweden have unveiled a method for simulating specific types of error-corrected quantum computations.

Read more...
Platform to accelerate supply chain decarbonisation
Schneider Electric South Africa IT in Manufacturing
Schneider Electric has launched Zeigo Hub by Schneider Electric, a powerful new digital platform designed to help organisations decarbonise their supply chains at scale.

Read more...
Future-ready data centres
IT in Manufacturing
The white paper ‘Future-Ready Data Centres’ by Black & Veatch outlines how integrating sustainable design principles not only helps meet ESG goals but also ensures reliability, operational efficiency and business continuity in the face of climate change and growing digital demand.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved