The Economic Value of Trusted Data Flows

Pragmatic Policy Group and Caribou Digital were commissioned by EU government agencies to study the economic benefits of enabling safe and free flow of data between an African economy and other regions. We analysed the value of data transfers and the potential impact on their economy, focusing on fostering investor confidence and stimulating growth.

Published by
Pragmatic Policy Group LLC

Independent economic research & policy analysis.

Contents
Key findings at a glance

Key findings at a glance

Six Channels Of Impact

How Trusted Data Flows Can Create Economy-Wide Value

Trusted data regulation affects far more than technology companies. Easier and safer data movement can improve how businesses operate, connect firms with international customers, support new jobs, strengthen investment and expand the government’s tax base.

 

23K–412K

New jobs supported each year, in sectors such as tourism, business-process outsourcing and digital work

$1.1B–$5.5B

Additional private-sector revenue each year

$1.3B–$6.2B

Additional GDP each year, a 1–5% increase

$208M–$395M

Additional trade each year, mainly in digital services (a 2–4% increase)

$178M–$1.1B

Additional tax revenue each year, without raising tax rates

$9M–$58M

Additional foreign direct investment each year

How The Model Works

THE ANALYSIS ASSESSES TWO DATA-REFORM PATHWAYS AND THEIR WIDER ECONOMIC EFFECTS

PPG and Caribou Digital combined international research, macroeconomic data, and economic modeling to assess the potential benefits of trusted data flows. The analysis considered improvements to local data rules and simpler, safer data sharing between countries, examining outcomes across employment, business revenue, prices, trade, productivity, investment, and tax revenue.

FIGURE 1: ESTIMATED ANNUAL ECONOMIC IMPROVEMENTS (% INCREASE)

Modeled % increase from improved local data rules and safer cross-border data sharing, minimum vs maximum estimate

5% 4% 3% 2% 1% 0%
1%
5%
GDP
2%
4%
Trade
0.6%
1.3%
Productivity
Minimum estimate
Maximum estimate
Note: Values are the estimated annual % increase in each measure. Source: PPG and Caribou Digital.

Figure 1: Estimated annual economic improvements from trusted data flows (% increase)
Impact of improved local data rules and simpler, safer data sharing between countries.

GDP

+1% to +5%

Trade

+2% to +4%

Productivity

+0.6% to +1.3%

Note: Bars show the maximum modeled increase; labels show the minimum to maximum range. Source: PPG and Caribou Digital.

The central finding: Trusted data-flow reforms could support economic growth across multiple areas, including employment, business activity, trade, investment, and public finances. The scale of the benefits depends on the reforms implemented and the outcomes achieved.

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