The use of data and artificial intelligence (AI) has become critical for the future development of economies worldwide, said finance minister Enoch Godongwana.
As a result, data infrastructure should be considered as critical as electricity, ports and transport networks, he said while tabling the 2026 national budget at Cape Town City Hall this afternoon.
“This year, we will be exploring options to help data centres and related infrastructure to expand these investments in South Africa and solidify our role as a regional hub for these technologies,” he said.
The finance minister’s sentiments echoed president Cyril Ramaphosa’s State of the Nation Address, where he noted the country’s gains in attracting investment in digital infrastructure, with 55 data centres already built and more than R50 billion of investment expected over the next three years.
In his 2025 speech, the president also backed SA’s burgeoning data centre industry, describing the country as a “reservoir” for data centres.
South Africa is the largest data centre market on the continent, as hyperscalers and data centre operators continue to establish cloud regions, according to Grand View Research. The country’s geographical position makes it a strategic hub for regional and international connectivity.
The data centre capacity buildout has also resulted in government calling for accelerated cloud migration, as the state’s digital transformation efforts require greater use of cloud.
Crypto assets
Turning to digital currencies, Godongwana told members of Parliament that National Treasury has said crypto assets will be included in the capital flows management framework.
To action this, Treasury plans to publish draft regulations under the Currency and Exchanges Act, to include crypto assets.
“Crypto assets will now be governed in the cross-border movement of capital framework, which will be complementary to regulations already in place to prevent the use of crypto assets to launder money and commit fraud.”
The 2026 budget review document further notes that Treasury’s move will complement regulation by the Financial Sector Conduct Authority, which officially declared crypto assets (like Bitcoin and Ethereum) to be “financial products” under the Financial Advisory and Intermediary Services Act.
Similar regulatory action has been taken by the Financial Intelligence Centre, which in 2025 designated crypto asset service providers as accountable institutions subject to supervision, including reporting, registration and enforcement, according to the document.
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