South Africa is stepping up efforts to build its own cloud infrastructure as part of a broader strategy to strengthen digital sovereignty and reduce long-term dependence on international technology providers.
President Cyril Ramaphosa said the government is investing in domestic cloud capabilities while continuing to welcome foreign investment from major global technology companies operating in the country.
In his weekly newsletter, the President noted that companies including Amazon Web Services (AWS), Microsoft and Google have collectively invested more than R35.8 billion in South Africa’s cloud computing and data centre industry. He described these investments as an important contribution to the country’s digital economy but argued that they should complement, rather than replace, local technological capacity.
Ramaphosa said that in an increasingly digital world, national sovereignty extends beyond territorial borders to include a country’s ability to protect sensitive information, develop its own digital capabilities and maintain meaningful control over critical technology infrastructure.
Government seeks greater control over strategic digital assets
The President warned that governments around the world are becoming increasingly aware of the risks associated with storing large volumes of sensitive public and private data on infrastructure owned by companies operating outside their national jurisdictions.
To address those concerns, he said South Africa is investing in sovereign cloud infrastructure through institutions such as the Council for Scientific and Industrial Research (CSIR).
According to Ramaphosa, future regulatory and policy frameworks must strike a balance between encouraging innovation and protecting national interests, while also learning from the experiences of countries that have become heavily dependent on foreign-owned digital platforms.
South Africa’s ambition to establish greater control over its digital infrastructure is not new. In 2022, the government announced plans to establish the State Digital Infrastructure Company (SDIC), a proposed state-owned entity intended to strengthen national connectivity and digital services.
The proposal followed changes to South Africa’s spectrum policy and effectively replaced earlier plans centred on a Wholesale Open Access Network (WOAN).
Earlier infrastructure plans faced implementation challenges
Under the original proposal, the government intended to combine the assets of Sentech and Broadband Infraco into the SDIC, creating a national digital infrastructure provider responsible for supporting state connectivity while expanding broadband access to underserved communities.
The planned entity was also expected to promote greater participation by small businesses and help reduce barriers to entry in South Africa’s telecommunications sector.
However, the initiative gradually lost momentum due to questions over its commercial viability, governance concerns, Broadband Infraco’s financial position and shifting government priorities.
In May 2026, Communications Minister Solly Malatsi revived discussions around the WOAN concept, saying the department was working towards a policy direction designed to increase competition and improve access to affordable data services.
While the objective of expanding connectivity has received broad support, industry observers have repeatedly questioned whether a government-led broadband network could compete effectively with established operators such as Vodacom and MTN, which have invested heavily in nationwide infrastructure over many years.
For now, the government appears to be pursuing a dual strategy: encouraging continued investment from international technology companies while simultaneously developing local digital infrastructure to strengthen South Africa’s long-term technological resilience and data sovereignty.
Source: Presidency of South Africa.