By Abubakar Yunusa
Cross-border businesses in Africa are facing stricter regulatory scrutiny as data protection laws gain traction across the continent, a new report has revealed.
Yellow Card’s 2026 Report on Data Protection and Artificial Intelligence Governance in Africa showed that 45 countries now enforce data protection regulations, signalling a shift towards tighter compliance demands.
The report noted that 39 regulatory authorities are fully operational, strengthening enforcement frameworks for firms handling digital transactions and customer data.
It stated that businesses expanding across African markets must now prioritise compliance as a core operational requirement rather than an afterthought.
Group Data Protection and Privacy Counsel at Yellow Card, Thelma Okorie, warned that companies upgrading payment and treasury systems must be ready to navigate increasingly complex cross-border regulations.
She said innovation in emerging markets is now closely linked to the ability to manage diverse regulatory environments.
The report further indicated that regulators are extending oversight beyond data protection into artificial intelligence governance.
It disclosed that 16 African countries have adopted national AI strategies, while Nigeria, Angola, Morocco and Namibia are advancing enforceable AI laws.
According to the report, the shift from policy guidance to binding regulation will impact financial institutions deploying AI for customer verification, fraud detection and risk assessment.
It added that 2026 is expected to usher in stricter enforcement, with regulators mandating Data Protection Impact Assessments and Algorithmic Impact Assessments.
The development is projected to increase compliance costs for businesses lacking robust governance systems.
The report also highlighted that financial institutions, telecom operators and payment service providers using stablecoins for cross-border settlements must ensure compliance with strict privacy and security standards.
It stressed that firms leveraging stablecoins for efficiency and liquidity cannot overlook regulatory obligations tied to customer data and automated systems.
Yellow Card maintained that businesses seeking expansion across multiple African markets must build digital infrastructure that balances speed with compliance.
Okorie added that while stablecoins offer significant benefits in treasury management and foreign exchange risk mitigation, the underlying systems must align with stringent data protection and AI governance frameworks.
