National Treasury has kicked off one of the key parts of SA’s roadmap for the digital transformation of government, introducing a pilot project called MzansiXchange.
The roadmap, which forms part ofOperation Vulindlela phase two, comprises of four key pillars: data exchange, digital identity, digital payments and digital services.
As a result, MzansiXchange is the data exchange pillar of the roadmap, said National Treasury director-general (DG) Dr Duncan Pieterse, explaining the elements of the roadmap.
All four roadmap pillars aim to support the broader MyMzansi initiative, which will provide a single digital entry point for accessing government services. It will connect digital identity, payments and services.
Eradicating siloes
The government landscape is often characterised by slow, fragmented and siloed systems between departments, entities and other agencies, Pieterse admitted.
This tends to constrain government’s ability to make evidence-based decisions, deliver integrated services, allocate resources efficiently and build public trust.
MzanziXchange seeks to address these gaps by creating an environment where data can be shared in a secure, structured and coordinated manner across government, he explained.
“Different government departments sit individually on a host of different datasets. What typically happens is that they will use their data to inform their decision-making,” said Pieterse.
“Enter MzansiXchange. The platform looks to enable different government departments and agencies to leverage the data of others more effectively for informed decisions.”
A data exchange framework is envisioned to eradicate the silo effect in government and allow efficiency and coordination in how the state operates.
“Data exchange will underpin and connect digital payments, digital identity and digital services. MzansiXchange is the data exchange pillar of the roadmap. It is intended to help us to streamline administrative processes, enable government institutions to securely access relevant, verified information, support greater efficiency and cost savings, and empower policymakers by making timely data available to inform planning and decision-making.”
In pilot mode
According to Pieterse, National Treasury began the due-diligence and design phase of MzansiXchange in 2024.
The process focused on finding the best technical architecture, prototyping secure data access systems, assessing the legal and governance landscapes, as well as engaging stakeholders across government.
To initiate the data exchange pillar, Treasury partnered with several government institutions that will also participate in the pilot phase. They include: Statistics South Africa; the departments of agriculture, land reform and rural development, home affairs, basic education, higher education and training; the Presidency; South African Revenue Service; South African Social Security Agency (SASSA); National Student Financial Aid Scheme; Council for Scientific and Industrial Research; and the South African Reserve Bank.
This design phase has informed the pilot’s scope and design, said the DG. “MzansiXchange is way of sharing data; it not a central data repository. The idea is not to have one place where different government departments deposit or store their data. The idea is to create an exchange or a bridge between different departments and agencies, to share the data they already have.
“This approach balances departmental data sovereignty with secure, cross-government data sharing through a structured and governed framework.
“For example, the tax data that sits with the revenue service, the national population register at the Department of Home Affairs, the procurement data at National Treasury, the social grant beneficiary data at SASSA, and so forth. It allows us to link those different datasets and access insights across them through a data exchange.”
The DG explained that MzansiXchange’s prototype has been built with X-Road as the foundational technology, supporting flexible mechanisms and enhancing resilience with robust design, ensuring standards harmonisation, digital inclusion and long-term sustainability.
“MzansiXchange will have governance frameworks, standardised data protocols and will set clear expectations for metadata standards, data quality and interoperability. It will provide standardised legal instruments – such as memorandum of understanding or service level agreements – to guide secure and compliant data sharing.”
The four pillars of MzansiXchange:
The first pillar is data sharing for regulation, compliance and verification – this provides authorised public entities with real-time access to identifiable data for verification and compliance purposes.
The second pillar is data sharing for evidence-based policy, planning and research – MzansiXchange will enable bulk sharing and integration of de-identified data from government institutions to a secure data facility.
The third is data sharing for operational analytics – this facilitates bulk transfers of both de-identified and identifiable data between public sector institutions to support service delivery and the fulfilment of operational mandates.
The fourth pillar is open access data sharing – enables users to explore data catalogues, dashboards, data stories, download aggregated datasets and view metadata through secure protocols.
“This one-year pilot will test the MzansiXchange in real-world conditions, strengthening the foundations for a broader national rollout,” the DG concluded.
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