The Senegalese government has been making significant strides in shaping its digital policy, with a focus on regulating data without stifling economic growth. In February 2025, the government launched the New Deal technologique, a comprehensive strategy aimed at promoting the country's digital economy. This initiative has been followed by the introduction of new regulations, including a 0.5% tax on money transfers and merchant payments.
A recent report by the Organisation for Economic Co-operation and Development (OECD) and the World Trade Organization (WTO) provides valuable insights into the economic implications of data regulation. The report, titled "Economic Implications of Data Regulation: Balancing Openness and Trust," uses a computable general equilibrium model to assess the impact of data regulation on the global economy. The findings suggest that well-regulated data flows can produce more value than deregulated ones.
The OECD-WTO report highlights the importance of trust in data regulation, noting that it is a critical infrastructure for economic growth. The report also emphasizes that localization of data is not the same as sovereignty, and that restrictions on data transfers can have negative economic consequences. In particular, the report notes that a generalized ban on data transfers could reduce global GDP by 4.63% and exports by 8.49%.
The report's authors used a combination of tools, including a computable general equilibrium model, econometric estimates, and a survey of 85 companies, to assess the impact of data regulation. The survey found that 8% of companies would cease to operate in certain countries if faced with restrictive data regulations. The report also notes that the costs of compliance with data regulations can be significant, particularly for small and medium-sized enterprises.
The Senegalese government's efforts to regulate data have been driven by a desire to promote sovereignty and protect national interests. However, the OECD-WTO report suggests that this approach may not be the most effective way to achieve these goals. Instead, the report recommends a more nuanced approach that balances openness and trust. This approach would involve implementing regulations that promote transparency and accountability while also facilitating the free flow of data.
The New Deal technologique has been designed to promote Senegal's digital economy, but its instruments have been criticized for being poorly calibrated. The OECD-WTO report suggests that the government should adopt a more anticipatory and adaptive approach to regulating data, one that takes into account the rapidly evolving nature of the digital economy. This approach would involve working closely with stakeholders, including businesses and civil society organizations, to develop regulations that are flexible and responsive to changing circumstances.
The stakes are high for Senegal, as the country's digital economy is expected to play a major role in its future economic growth. The OECD-WTO report suggests that a well-designed data regulation framework could increase Senegal's GDP by 4% or more, while also promoting economic diversification and innovation. Conversely, poorly designed regulations could have negative consequences, including driving away businesses and stifling economic growth.
Key points
- The Senegalese government must balance data regulation with economic growth.
- The OECD-WTO report recommends a nuanced approach to data regulation that balances openness and trust.
- The country's digital economy is expected to play a major role in its future economic growth.
