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When Data Runs the Show: Privacy, Exploitation, and the New Digital Economy in Africa

It’s impossible to mention Africa’s digital boom these days without encountering a chorus of upbeat stories. Media outlets champion Africa as the “last frontier” for hungry tech giants, governments praise game-changing mobile solutions, and entrepreneurs tout their “leapfrogging” apps to international funders. In a region where nearly half the population still lacks reliable internet access, these success stories are seductive. And yet, beneath the triumphant headlines lies a thorny, often overlooked question: In a rapidly digitising landscape, who really controls the data—and to what ends?

A cursory glance at certain corners of sub-Saharan Africa paints a picture of unstoppable progress. In Kenya, M-Pesa paved the way for mobile money, empowering millions who had no traditional banking access. Nigeria’s tech scene, including the bustling epicenter of Yaba in Lagos, boasts a cadre of startups promising everything from real-time agriculture updates to instant loans. Rwanda has garnered accolades for delivering medical supplies via drones. In each instance, there’s a dazzling sense that technology is leveling the playing field, bridging gaps that once seemed insurmountable.

But the deeper story isn’t merely about adopting technology; it’s about how the newfound currency of data is gathered, who mines it, and how it’s wielded. The simple act of unlocking a smartphone opens users to data collection—personal details, location tracking, browsing histories, and consumer habits. Anyone who’s ever admired the convenience of ride-hailing or tried the novelty of buy-now-pay-later apps might not think twice about the digital footprints they leave behind. In Africa, where infrastructure for data privacy regulations often lags behind the West, this data gold rush can become an exploitation minefield.

It’s easy to dismiss calls for caution as a techno-phobic reaction to progress. After all, aren’t digital tools crucial in regions where roads can be poor, governments understaffed, and rural populations underserved? It’s true that telehealth apps, for example, have helped farmers in remote villages reach doctors in faraway cities. Mobile micro-loans have injected much-needed capital into small businesses, lifting entire families out of poverty. Yet, these very tools also gather reams of sensitive information—financial details, health data, even biometric records. Without robust oversight, large corporations, governments, or even unscrupulous third parties can buy, sell, or otherwise misuse this data in ways invisible to the average user.

Consider the proliferating micro-lending and credit-scoring apps. Their appeal is straightforward: they promise quick loans with limited paperwork, a boon for entrepreneurs who lack collateral or formal financial histories. But the price of that convenience can be steep. Many such apps use sweeping permissions to access phone contacts, text messages, and browsing history. Anyone with the slightest knowledge of how data brokers operate can imagine the next steps: selling user data to debt collectors or leveraging it to inflate interest rates based on a borrower’s perceived risk. The more data these services accumulate, the more precisely they can micro-target—and sometimes exploit—potential customers.

Moreover, the involvement of Big Tech, philanthropic organisations, and foreign investors in African markets raises complex issues of digital sovereignty. When Silicon Valley venture capital funds pour money into local startups or when global nonprofits sponsor “innovation hubs,” the rhetoric is invariably about empowerment and social impact. Yet the underlying reality is frequently about data extraction. While it may be a net positive for local development at first, the long-term dynamics of who holds the data—and thus the power—remain murky. Is the data stored on servers in California, Beijing, or Europe, subject to those jurisdictions’ laws? Do African governments have any real say when it comes to how that data is used, monetised, or protected?

One might argue that such concerns are not unique to Africa—after all, the United States still grapples with insufficient digital privacy laws, and the European Union’s GDPR remains a work in progress. But in many African nations, legal frameworks around data protection and user privacy are either severely outdated or virtually non-existent. Without policy safeguards, and without a robust culture of data-literate consumers, entire populations can be swept into a digital economy where they have little recourse if they’re exploited or surveilled.

Government surveillance adds yet another layer of complexity. As more services digitise, states can tap into data troves under the banner of national security or public health. During elections, for instance, incumbents can exploit phone records or social media data to target—or suppress—certain demographics. In places where democracy is still fragile, the specter of data-driven political manipulation looms large. And unlike in Western nations, there is often limited independent oversight to rein in such practices or to blow the whistle when things go awry.

So how can Africa’s digital boom continue while mitigating these hidden threats? Part of the solution lies in robust, locally informed regulation—rather than simply importing Western legal models that may not fit local contexts. There must be transparent discussions among policymakers, tech companies, civil society, and community leaders about data ownership and consent. Consumers, too, must be educated about what it means to share sensitive details every time they press “accept” on an app. The promise of a more open, digital Africa should not come at the cost of privacy or autonomy.

The euphoria around the continent’s technological leaps is well-warranted. Digital tools really can deliver essential services to people who were once beyond the reach of traditional institutions. Yet that same wave of innovation risks becoming a digital gold rush, with ordinary citizens cast as data veins to be mined and monetised. If we fail to scrutinise the swirl of data around us, the spectacle of “Africa Rising” may camouflage a new form of exploitation—one that thrives on our unwitting surrender of the very data that defines who we are. And that hard truth deserves our urgent attention, no matter how irresistible the headlines may be.

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Business of Tech Africa by Juniper Media.