Africa cannot build a borderless digital economy with borders between regulators, By Shuaib S. Agaka

The continent does not need fewer regulators simply for the sake of reducing the number of institutions. It needs regulators that understand where their responsibilities intersect, share common standards where appropriate and give businesses a clearer path through government… The digital economy is already crossing African borders. The real question is whether Africa’s regulatory architecture is ready to cross them too.

Africa’s digital economy is expanding across borders faster than many of the rules governing it. A cloud platform can serve customers in several countries without building a separate digital ecosystem in each one. Artificial intelligence can be developed in one market, hosted in another and deployed across several more. Data centres can support businesses far beyond the countries where they are located.

Regulation, however, remains largely organised around national and sectoral boundaries.

That contradiction is becoming harder to ignore as Africa moves deeper into cloud computing, artificial intelligence and large-scale digital infrastructure. At the ITW Data Cloud Africa 2026 event in Nairobi, Kenya, the Director General of the National Information Technology Development Agency, Kashifu Inuwa Abdullahi, called for a more unified regulatory approach across Africa, arguing that fragmented approval systems can delay projects and create uncertainty for technology investors.

His intervention goes beyond the question of faster licensing. It raises a more fundamental issue about how Africa intends to build a digital economy that is increasingly interconnected while its regulatory systems remain largely separate.

This is particularly important for infrastructure that requires significant capital and long-term planning. Data centres, cloud platforms and major digital networks cannot be deployed like ordinary software products. They require power, connectivity, specialised equipment, technical expertise and confidence that the regulatory environment will remain sufficiently predictable throughout the life of an investment.

This is where I cannot help but admire the European Union when it comes to regulatory alignment and development, particularly in technology.

The EU is far from having a perfect regulatory system, and its member states still retain significant national responsibilities. Yet its broader effort to establish common rules and standards gives businesses a framework for operating across a large integrated market. For technology, that kind of alignment matters because companies can build products and infrastructure with a clearer understanding of the rules governing their activities across member states.

Africa has a different political and economic structure, so the European model cannot simply be copied. But the underlying lesson is worth considering. A large digital market becomes more useful when its regulatory systems are capable of working together.

Artificial intelligence makes this even more urgent. AI does not fit neatly into one regulatory box. An AI service can involve data protection, cloud computing, cybersecurity, telecommunications, financial services and consumer protection at the same time. If each area is regulated without considering the others, businesses can face overlapping requirements while regulators may struggle to determine where one mandate ends and another begins.

Cloud infrastructure presents a similar challenge. A large data centre is not simply a technology facility. Its operation can involve energy, telecommunications, physical security, data governance, cybersecurity, investment and environmental considerations.

The problem, therefore, is not that Africa has too many regulators. It is that technologies have become interconnected while regulatory structures often remain compartmentalised.

NITDA’s proposed model of horizontal co-regulation offers one possible response. Under the approach outlined by Inuwa, a technology regulator establishes broad standards that sector-specific regulators can adopt and adapt within their respective areas.

That distinction is important. It does not require every regulator to surrender its mandate. Instead, it creates a common technological foundation that can be applied across sectors while allowing individual regulators to address the specific risks within their industries.

Nigeria’s National Sovereign Cloud Initiative provides an example of this thinking. NITDA has developed cloud standards and frameworks intended to support secure and interoperable cloud deployment, with the broader policy framework addressing issues including interoperability and data portability.

The pace of technological development also makes it difficult for static rules to remain adequate indefinitely. AI models, cloud architectures and digital infrastructure can change substantially within a short period. Regulatory frameworks therefore need mechanisms for review and adaptation rather than being treated as permanent solutions.

However, there is a difference between coordination and simply creating another layer of regulation.

A single regulatory interface would only be useful if it genuinely simplifies the experience of businesses. If a company submits its information through one portal but still has to repeat the same process separately with multiple agencies, the reform has only moved the paperwork rather than solving the underlying problem.

The more useful goal is regulatory interoperability. African countries do not necessarily need identical laws or a single continental regulator. National governments will continue to have legitimate responsibilities over security, privacy, financial stability and critical infrastructure. What is needed is greater compatibility between regulatory frameworks, standards and compliance processes.

Greater alignment could also strengthen Africa’s position in the global technology economy. The continent has a large and growing market, but its potential is spread across countries with different regulatory capacities, infrastructure and investment environments. More compatible rules could make it easier for companies to expand digital infrastructure across multiple markets and for African technology firms to scale beyond their home countries.

Africa’s digital future will depend on more than fibre networks, data centres, cloud platforms and AI systems. It will also depend on whether governments can create a regulatory environment that allows those technologies to connect, scale and operate across borders without unnecessary friction.

The continent does not need fewer regulators simply for the sake of reducing the number of institutions. It needs regulators that understand where their responsibilities intersect, share common standards where appropriate and give businesses a clearer path through government.

The digital economy is already crossing African borders. The real question is whether Africa’s regulatory architecture is ready to cross them too.

Shuaib S. Agaka is a tech journalist and digital policy analyst based in Kano. He can be reached via [email protected]