National Treasury Launches MzansiXchange Pilot to Revolutionise Secure Data Sharing Across South African Government
Pretoria – The National Treasury has taken a bold step forward with the launch of the MzansiXchange pilot, a groundbreaking data exchange system designed to break down barriers between government departments and drive smarter decisions. Led by Director-General Dr Duncan Pieterse, this initiative tackles long-standing issues like scattered data, isolated systems, and poor connections that have held back effective policymaking and service delivery.
Speaking at the pilot’s launch on 9 October 2025, Pieterse highlighted how MzansiXchange will enable real-time checks and evidence-based planning without creating a big central storage hub. This move comes as part of a wider push under Operation Vulindlela Phase II to build a digital foundation for inclusive growth, following the approval of South Africa’s Roadmap for the Digital Transformation of Government earlier this year.
With South Africa’s economy needing a boost, this system promises to save time and money by letting departments share information safely while keeping control of their own data. The one-year pilot will put it to the test in everyday use, paving the way for a full rollout that could change how government works for the better. As Pieterse put it, “These challenges have constrained our ability to make evidence-based decisions, deliver integrated services, allocate resources efficiently, and build public trust in government systems. MzansiXchange addresses these gaps by enabling secure, structured, and coordinated data sharing across government.”
Background on Data Challenges and the Digital Roadmap
For years, South Africa’s government has struggled with data that is split up and hard to share, leading to slow decisions and wasted efforts. Departments often work in their own bubbles, making it tough to spot trends or fix problems quickly. This has hurt everything from handing out grants to planning budgets, and it has shaken people’s faith in how taxpayer money is used.
The launch of South Africa’s Roadmap for the Digital Transformation of Government in May 2025 marked a turning point. Approved by Cabinet in March 2025, the roadmap is part of Operation Vulindlela Phase II, a joint effort between the National Treasury and the Presidency. Phase II builds on the first phase’s successes, like easing business rules and improving energy supply, to unlock faster economic growth. It aims to lift real GDP growth by 1.5 per cent above the usual path, focusing on areas like local government fixes and digital upgrades.
The roadmap has four main pillars: Data Exchange, Digital Identity, Digital Payments, and Digital Services. It sets out a plan to modernise public services by joining up digital efforts and using shared systems. Phase one runs from March 2025 to February 2027, zeroing in on social protection, digital IDs, and a single online spot for services. Phase two, from March 2027 to February 2030, will expand on that. Overall, it pushes for better ways to check identities, cut fraud, share data safely, handle payments, and let people access services through one easy portal. This ties into MyMzansi, a unified digital entry point that connects everything for smoother government interactions.
Development of MzansiXchange started in 2024 with careful checks on tech options, building prototypes, reviewing laws, and talking to key players across government. These steps shaped the pilot, ensuring it fits real needs while learning from past wins.
What is MzansiXchange and How Does It Work?
MzansiXchange is not a big storage vault for all government data. Instead, it acts like a safe bridge that lets departments swap information when needed, without giving up control. “MzansiXchange is not a central data repository. It does not store any data. Instead, it acts as a secure bridge – a structured and governed exchange that allows departments to retain ownership of their data, while sharing their data with other authorised entities, when needed,” Pieterse explained. “This approach balances departmental data sovereignty with secure, cross-government data sharing through a structured and governed framework.”
At its core, the system uses X-Road as the base technology, a proven tool that supports flexible ways to connect and keeps things strong against breakdowns. It ensures common standards for data, promotes access for all, and plans for the long haul. Governance is key, with clear rules on data formats, quality checks, and how systems link up. Legal tools like Memoranda of Understanding or Service Level Agreements make sure sharing is safe and follows the rules.
MzansiXchange builds on existing setups like the National Treasury Secure Data Facility, which has run for over ten years using anonymised tax records to help with policy studies. For example, it has been used to check how well companies perform or test programs like the employment tax incentive. Another base is the Spatial Economic Activity Data South Africa, which maps out economic info to help provinces and towns plan better. These show how safe, nameless data can drive fair growth, and their lessons shape MzansiXchange.
The system creates a connected, secure space for planning, policies, reports, and services. It pushes for standard data rules so old, separate systems can talk to each other more easily. This leads to real-time checks, smarter choices in areas like taxes, jobs, schools, and social help, and better local services through sub-national data.
The Four Key Pillars of Data Access
MzansiXchange offers four tailored ways to access data, each fitting different needs while keeping things secure.
The first pillar focuses on data sharing for regulation, compliance, and verification. It gives approved public groups quick access to personal details for checks. “This provides authorised public entities with real-time access to identifiable data for verification and compliance purposes. For instance, the data exchange can be used to securely verify key information when enrolling citizens into public programmes or grants – helping ensure accuracy while simplifying the process for applicants,” Pieterse said.
The second pillar is for evidence-based policy, planning, and research. It allows big batches of nameless data to move to a safe spot. “MzansiXchange enables bulk sharing and integration of de-identified data from government institutions to a secure data facility. For example, de-identified administrative data – such as education outcomes, tax records, or social protection information – can be securely shared with a secure data facility,” he added. This helps experts and leaders spot patterns for better plans.
The third pillar handles data sharing for operational analytics. It moves large sets of both nameless and personal data between public bodies to aid daily work. “This facilitates bulk transfers of both de-identified and identifiable data between public sector institutions to support service delivery and the fulfilment of operational mandates. For example, MzansiXchange can support the bulk sharing of financial and procurement data between public sector institutions – helping improve coordination and strengthening planning and oversight.”
Finally, the fourth pillar is open access data sharing. It lets users browse catalogues, dashboards, stories, download grouped data, and see details safely. “It enables users to explore data catalogues, dashboards, data stories, download aggregated datasets and view metadata through secure protocols. For example, the spatialised tax data housed within the National Treasury Secure Data Facility, local data and other insights will be shared via MzansiXchange,” the DG noted.
The Pilot Phase and Path to Full Rollout
This one-year pilot puts MzansiXchange through real tests to build a strong base for wider use. It will check how well it works in daily tasks, fix any hiccups, and gather feedback for tweaks. “This one-year pilot will test the MzansiXchange in real-world conditions, strengthening the foundations for a broader national rollout,” Pieterse stated. Success relies on all departments joining in and making the most of it. “MzansiXchange is a national commitment to harnessing data for the public good. It is a platform for collaboration, innovation, and transformation. The success of MzansiXchange depends on how each of us commits to supporting and using it. Ensuring that all departments work towards integrating and being able to fully leverage the potential of the MzansiXchange.”
The technical team, led by Open Cities Lab, has driven the build. An international advisory board offers global know-how, and funding comes from partners like the State Secretariat for Economic Affairs, the UK Foreign, Commonwealth and Development Office, and the Gates Foundation.
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