Cross Border Data Flows: The impact of data localisation on IoT
This industry report seeks to shed new light on the costs of imposing data localization requirements or other restrictions on cross-border data flows with respect to the important economic growth likely to result from the uptake and adoption of IoT in manufacturing, agriculture and other important sectors of the economy. It chooses 3 large emerging markets in order to showcase its model, namely Brazil, Indonesia and South Africa.
This industry report seeks to shed new light on the costs of imposing data localization requirements or other restrictions on cross-border data flows with respect to the important economic growth likely to result from the uptake and adoption of IoT in manufacturing, agriculture and other important sectors of the economy. It chooses 3 large emerging markets in order to showcase its model, namely Brazil, Indonesia and South Africa.
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CROSS-BORDER DATA FLOWS: THE IMPACT OF DATA LOCALISATION ON IOT<br />
For South Africa, the model estimates that<br />
investments, c<strong>on</strong>sumpti<strong>on</strong> and imports are<br />
projected to decline at a greater rate if cross-border<br />
restricti<strong>on</strong>s are implemented.<br />
• As a result <str<strong>on</strong>g>of</str<strong>on</strong>g> the ec<strong>on</strong>omic c<strong>on</strong>tracti<strong>on</strong> caused<br />
by DLRs, 182,000 jobs are lost in South Africa.<br />
• GDP losses are approximately $6.7 billi<strong>on</strong> in<br />
absolute terms by 2025, based <strong>on</strong> GDP-growth<br />
projecti<strong>on</strong>s published in the IMF World Ec<strong>on</strong>omic<br />
Outlook. 35<br />
• <str<strong>on</strong>g>The</str<strong>on</strong>g> loss <str<strong>on</strong>g>of</str<strong>on</strong>g> investment amounts to $4 billi<strong>on</strong>.<br />
Figure 4.3<br />
Losses <str<strong>on</strong>g>of</str<strong>on</strong>g> DLRs <strong>on</strong> <strong>IoT</strong> <str<strong>on</strong>g>data</str<strong>on</strong>g> in South Africa (%).<br />
Declines compared to Scenario 1 baseline.<br />
GDP Exports Imports C<strong>on</strong>sumpti<strong>on</strong> Investment<br />
Employment<br />
- 0.8<br />
- 1.5<br />
- 1.4<br />
- 1.7<br />
- 3.7<br />
- 5.1<br />
Key KPI<br />
Sub KPIs (GDP comp<strong>on</strong>ents) ..............................................................................................<br />
Social <str<strong>on</strong>g>impact</str<strong>on</strong>g><br />
35. Ibid.<br />
22