South Africa to Revise National AI Policy After Withdrawal of Initial Draft

South Africa’s Department of Communications and Digital Technologies has announced that it will withdraw its initial national artificial intelligence (AI) policy draft amid controversy surrounding AI-generated content and hallucinated citations. The withdrawal underscores the necessity for transparency and accuracy in government communications, particularly in a rapidly evolving field like AI. The deputy minister, Mondli Gungubele, confirmed that a revised draft is in progress, marking a significant step toward establishing a coherent national strategy for AI that is expected to reach the ministerial level by the end of November 2026. The revised policy will then be prepared for Cabinet consideration by the conclusion of the current financial year.

The process surrounding the AI policy is critical for various sectors involved in digital infrastructure and connectivity within South Africa. Firms with capabilities in AI technology can align their strategies based on how the government's policy shapes future demands and regulatory frameworks. The potential policy will likely drive investment towards companies that can enhance the digital economy, projected to reach over $700 billion by 2035, boosting South Africa's transformation into an AI-driven market.

However, businesses should note that as of now, there are no active solicitations or contracts connected to this process. Gungubele's comments also reflect the increasing pressure on the government to create a favorable environment for multinational corporations and innovators in AI while ensuring compliance with local laws. He stated that a robust AI policy is not only vital for the economic modernization of South Africa but also essential for maintaining national sovereignty.

This landscape highlights the dual urgency of regulatory measures and economic opportunities. As South Africa aims to leapfrog towards enhanced digital capabilities, tracking the revised AI policy’s development will be crucial for contractors vying for early market entry should these opportunities materialize. Gungubele emphasized that without an agreed framework for AI regulation, the potential for misuse of technology increases, necessitating rigorous policy development.

In conclusion, the revised AI policy draft represents a pivotal moment for South Africa as it emerges as a significant player in the global digital economy. Contractors and businesses associated with AI, digital infrastructure, and emergent technologies should closely monitor the development of this policy as it could have far-reaching implications for their future opportunities in government contracting.

• The Department of Communications and Digital Technologies is revising its national AI policy draft.
• The previous draft was withdrawn due to concerns about AI-generated inaccuracies and citations.
• A new draft is expected to be shared with the minister by the end of November 2026.
• The national AI strategy may influence future digital infrastructure and connectivity contracts.
• South Africa’s digital economy is projected to exceed $700 billion by 2035, largely driven by AI.
• Companies should prepare to align their capabilities with the expected policy shifts.
• There are currently no active solicitations related to this AI policy revision.
• The Cabinet's consideration of the policy is expected before the end of the financial year.