Promoting Digital Innovation in Southern Africa: A UNU-CRIS Policy Brief

© GIZ

The policy brief Advancing Regional Regulatory Sandbox Cooperation for Data- Driven Growth in SADC, published by Stephanie Arnold at the United Nations University Institute on Comparative Regional Integration Studies, illustrates how data-driven innovation and smart regulation can be better aligned—and why new approaches are particularly needed now.

At its core is the concept of regulatory sandboxes: controlled testing environments in which new technologies can be trialed under the supervision of public authorities. The report highlights the strong potential of this tool, while noting that it is often limited to individual countries, thereby reducing its overall impact. To truly advance innovation, the key message is clear: greater cross-border cooperation and stronger regional coordination are essential. The policy brief thus provides not only an accessible introduction to the topic, but also concrete recommendations for designing future-ready regulation in an increasingly data-driven world.

Workshop with representatives from SADC member states in Antananarivo, Madagascar (September 2025), © GIZ / DataCipation

The report is based on insights from a workshop in Madagascar, which brought together more than 50 regulatory authorities and policymakers from the Southern African Development Community. The findings show that sandboxes are increasingly being used to test new data-driven technologies while simultaneously developing appropriate regulatory frameworks.

Drawing on international examples, the publication demonstrates that stronger collaboration between countries enables shared learning, improved regulatory conditions, and ultimately supports the growth of the data economy.

This work is part of the “Data Markets” initiative under the Team Europe project Data Governance in Africa and is implemented in cooperation with regional and international partners.