Cross-border businesses operating in Africa are facing growing compliance obligations as 45 countries across the continent now enforce data protection laws.
This is according to Yellow Card’s 2026 Report on Data Protection and Artificial Intelligence Governance in Africa, just released.
The company noted that 39 regulatory authorities are now fully operational across the continent, creating a stronger enforcement framework for businesses handling digital transactions and customer data.
What they are saying
According to the report, institutions expanding across African markets must now treat regulatory compliance as a core business requirement rather than a secondary consideration.
Group Data Protection and Privacy Counsel at Yellow Card and author of the report, Thelma Okorie, said companies modernising payments and treasury systems must be prepared to navigate increasingly complex cross border rules.
- “For enterprises operating across emerging markets, the ability to innovate and modernize payment rails is deeply tied to their capacity to navigate complex, cross border regulatory landscapes,” she said.
The report added that African regulators are moving beyond data protection legislation into active oversight of artificial intelligence systems.
It stated that 16 countries have adopted national AI strategies, while Nigeria, Angola, Morocco and Namibia are among economies advancing enforceable AI laws.
More insights
According to Yellow Card, the transition from policy guidance to binding regulation is expected to affect financial institutions using AI for know your customer verification, fraud detection, transaction monitoring and risk profiling.
- The company said 2026 is shaping up as a year of stronger enforcement, with regulators increasingly requiring Data Protection Impact Assessments and Algorithmic Impact Assessments.
- This trend is expected to raise compliance costs for businesses that fail to build governance systems into their operations.
- Yellow Card noted that financial institutions, telecom operators and payment service providers adopting stablecoins for cross border settlements must also ensure that their technology partners meet high privacy and security standards.
The report stated that businesses using stablecoins to improve liquidity and shorten settlement cycles cannot ignore the regulatory responsibilities tied to customer data and automated decision systems.
Yellow Card said firms seeking growth across multiple African markets would need digital infrastructure capable of supporting both speed and compliance.
- “Stablecoins are powerful tools for business efficiency, treasury management, and mitigating FX volatility risk.
- “However, the infrastructure powering them must operate in lockstep with the strictest data protection and AI governance frameworks,” Okorie said.
What you should know
In Nigeria, the Nigeria Data Protection Commission (NDPC), armed with the Nigeria Data Protection Act, continues to beam its searchlight on businesses operating in the country.
Earlier this year, the Commission launched an investigation into Chinese e-commerce platform Temu over concerns that the personal data of millions of Nigerians may have been improperly handled.
According to the Commission, the investigation was triggered by multiple concerns surrounding the platform’s handling of personal data, including issues related to online surveillance, transparency, accountability, data minimisation, duty of care, and cross-border data transfers.
