South Africa took a major step toward modernizing governance and service delivery with the launch of MzansiXchange, a pilot project designed to enable secure and structured data exchange across government departments. The initiative, led by the National Treasury, allows public institutions to work more efficiently, using shared data to inform decisions and deliver better services. 

The MzansiXchange initiative aims to overcome long-standing challenges in South Africa’s public sector, including fragmented data systems, departmental silos, and limited interoperability. Rather than functioning as a single data repository, it acts as what National Treasury Director-General Dr Duncan Pieterse calls a “secure bridge” for data exchange between authorized government entities. 

“MzansiXchange is not a central data repository. It does not store any data,” Dr Pieterse explained at the pilot launch. “Instead, it acts as a structured and governed exchange that allows departments to retain ownership of their data while sharing it securely with other authorized entities when needed.” 

The Roadmap for Digital Transformation 

MzansiXchange forms one of the four pillars of the Roadmap for the Digital Transformation of Government, officially launched in May 2025. The other three pillars, digital identity, digital payments, and digital services, together form the foundation of South Africa’s digital public infrastructure. 

According to Dr Pieterse, the roadmap represents a joint effort between the National Treasury, the Presidency, and several other government departments as part of Operation Vulindlela Phase II. Its goal is to modernize public administration, enhance data-driven decision-making, and improve coordination across state institutions. 

Each pillar supports the others: while MzansiXchange focuses on data exchange, the MyMzansi initiative, the broader digital entry point for citizens, will integrate identity, payments, and service access into a unified platform. Together, they aim to create a government ecosystem that is more transparent, efficient, and responsive to public needs. 

Four Components of the MzansiXchange Platform 

The MzansiXchange pilot introduces four main components designed to meet different data-sharing needs within government: 

1. Regulation, Compliance, and Verification: Provides authorized entities with real-time access to identifiable data for verification and compliance purposes. 

2. Policy, Planning, and Research: Facilitates the bulk sharing of de-identified data for evidence-based policymaking and research. 

3. Operational Analytics: Enables departments to transfer both de-identified and identifiable data to support day-to-day service delivery. 

4. Open Access Data: Offers the public access to aggregated datasets, dashboards, and catalogues through secure digital channels. 

These components are underpinned by strict governance frameworks, standardized data protocols, and legal instruments such as Memoranda of Understanding (MoUs) and Service Level Agreements (SLAs). This ensures that all data exchange within the system remains compliant, transparent, and secure. 

Building on a Foundation of Secure Data Use 

MzansiXchange builds on existing National Treasury projects such as the National Treasury Secure Data Facility (NT-SDF) and Spatial Economic Activity Data South Africa (SEAD-SA). These initiatives have already demonstrated the benefits of using anonymized administrative data to inform policy and planning. 

For over a decade, the NT-SDF has handled anonymized tax records for policy analysis and program evaluation, including assessments of firm-level productivity and government incentives. The spatialized tax data generated through this work enables provinces and municipalities to understand local economic trends and allocate resources more effectively. 

Dr Pieterse highlighted that South Africa is one of the few countries globally to make such micro-level administrative data available for research, underscoring the nation’s commitment to transparency and innovation. Lessons from these projects — including those related to system security, collaboration, and trust, have directly informed the design and governance of MzansiXchange. 

Learning from Global Examples 

While tailored to South Africa’s specific needs, MzansiXchange draws inspiration from successful international models. The National Treasury team consulted countries such as Estonia, India, Benin, Kazakhstan, and the Dominican Republic, all of which have implemented national data exchange frameworks. 

Brazil, for example, estimated savings of more than R4 billion in 2023 through its national data exchange infrastructure, highlighting the potential economic impact of secure and interoperable digital systems. 

The pilot phase of MzansiXchange, which will run for one year, is being implemented in collaboration with multiple departments and research institutions. Participants include Statistics South Africa, the Department of Home Affairs, the Department of Basic Education, the Department of Agriculture, Land Reform and Rural Development, the South African Revenue Service, and the South African Social Security Agency, among others. 

The project also benefits from the technical expertise of Open Cities Lab and the support of international development partners such as the State Secretariat for Economic Affairs (SECO), the UK Foreign, Commonwealth and Development Office (FCDO), and the Gates Foundation. 

A Platform for Transformation 

At the launch event, Dr Pieterse described MzansiXchange as a “platform for collaboration, innovation, and transformation,” emphasizing that its success depends on collective commitment. 

“MzansiXchange is a national commitment to harnessing data for the public good,” he said. “Its success depends on how each department integrates and fully leverages its potential. To succeed, we must build trust — between departments, in the system, and with the public.” 

MzansiXchange’s architecture, built using X-Road technology, provides flexibility and resilience while supporting harmonized standards and long-term sustainability. It is designed to evolve as South Africa’s digital ecosystem matures, ultimately enabling a more connected and data-smart government. 

References: 

• https://www.gov.za/news/speeches/director-general-duncan-pieterse-mzansixchange-pilot-launch-09-oct-2025