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While most nations are still debating how to define Artificial Intelligence (AI), South Africa has just thrown down a radical gauntlet.
In a move that could make it a global pioneer, or a cautionary tale, Communications Minister Solly Malatsi’s newly gazetted Draft National AI Policy proposes something unheard of: an AI Insurance Superfund.
Model
Modelled after the embattled Road Accident Fund, this “Superfund” is the centrepiece of a policy that refuses to play it safe. By suggesting a state-backed financial safety net for victims of algorithmic bias and AI errors, South Africa is admitting what Silicon Valley often ignores: AI will cause harm, and someone has to pay for it.
The 86-page document, gazetted on 10 April 2026, signals that the era of “move fast and break things” is over in South Africa.
Policy
The policy doesn’t just ask companies to be “ethical”; it creates a formal AI Ombudsperson and an AI Ethics Board to police them.
If an algorithm denies you a loan unfairly or a deepfake ruins your reputation, the state wants a mechanism in place to ensure you aren’t left behind in the digital dust.
Malatsi gazetted the Draft South Africa National Artificial Intelligence Policy approved by Cabinet for public comment on Friday, formally commencing a 60-day public consultation process.
“Artificial intelligence presents both significant opportunity and serious risk. When deployed and managed responsibly, AI can help unlock economic growth, improve service delivery, and create new pathways for innovation and inclusion,” Malatsi said.
“But if left unguided, it could also deepen existing inequality, reinforce exclusion, and expose South Africans to harms arising from technologies developed for very different contexts. The Draft National AI Policy is intended to help South Africa respond to this challenge with a coherent national approach.”
Adoption of AI
Malatsi said the draft policy seeks to support the safe and responsible adoption of AI, while protecting rights, promoting inclusive growth, and creating the conditions for innovation to flourish.
“The policy proposes a framework that balances opportunity with accountability, and innovation with safeguards. It is grounded in South Africa’s constitutional values and supports a risk-based approach to governance, with stronger oversight where AI systems pose higher risks to people, rights, and markets.
“The Draft Policy acknowledges that a national policy cannot and should not regulate every possible application of AI. Rather, the purpose of the policy is to establish core principles that will guide more detailed sectoral responses over time,” Malatsi said.
Consultation
While the current version of the policy is built on the responses received on the South Africa National Artificial Intelligence Policy Framework and extensive intra-governmental engagements, the Department of Communications and Digital Technologies firmly believes that the policy must be shaped through extensive consultation if it is to be fit for purpose.
That includes engagement with industry, researchers, civil society, labour, communities, and both local and international experts.
New entities
A section of the policy proposes creating a raft of new entities. These include:
- National AI Commission (National AI Office) to coordinate refinements on policy, implementation, and further policy development with input from government, industry, and civil society.
- AI Ethics Board to be established to enforce ethical governance and address considerations related to bias, privacy, and fairness.
- AI Regulatory Authority to monitor compliance, perform audits, and issue certifications.
- AI Ombudsperson Office to allow affected individuals to challenge AI-driven decisions and receive redress.
- AI Insurance Superfund modelled after the Road Accident Fund to compensate individuals or entities harmed by AI-driven outcomes, particularly in cases where liability is difficult to determine.
- National AI Safety Institute to work with similar international bodies to advance the science of AI safety and develop, update, and disseminate guidelines for AI safety as part of a risk and mitigation approach to regulation.
- Integrated AI-Powered Monitoring Centre tomonitor as a central nerve-centre to increase the efficiency levels of all service delivery (and related) touchpoints in each sector of government and society.
Interventions
The draft National AI Policy contains several interventions to respond to the safety and security risks created by AI systems:
Deepfakes:
According to the policy, the government should “provide as well as capacitate clear technical and legal recourse against the use of deepfakes and defamatory AI”.
Deepfakes are media – including images, audio and videos – which use Al tools to realistically depict a digitally rendered version of someone doing or saying something that never actually happened.
Protecting children from manipulative AI systems:
The draft policy says that AI systems must be prevented from “exploiting children’s behavioural patterns for commercial gain”.
It is clear that children should be protected from AI systems which use predatory advertising and “gamified features that encourage excessive screen time”.
Cybersecurity measures:
According to the draft Al policy, cybersecurity protocols must be implemented to safeguard Al systems from unlawful access to data.
Public comment
With a 60-day window for public comment (closing 10 June 2026), the government is moving at a breakneck pace for a bureaucracy.
The goal? A fully operational AI regulatory framework by the 2027/28 financial year.
According to the draft policy, South Africa’s National AI Policy is a strategic blueprint designed to leverage AI technologies for inclusive economic growth, job creation, and cost reduction, ultimately contributing to the development of Africa.
“By prioritising human-centric AI solutions, the policy aims to improve the quality of life for South Africans and position the nation as a leader in AI innovation.”
It’s unclear which entity will be tasked with introducing the policy interventions once approved.
