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Cybercrime

Why is Africa Losing Billions to Cybercrime?  

Stefan Kauder
2025/07/23
Crowe Tax

Africa faces escalating cyber threats, costing the continent an estimated $3.5 billion annually. Weak cybersecurity systems jeopardize investor confidence, disrupt global supply chains, and expose financial networks to exploitation. To combat these risks, African governments and businesses must invest in stronger security frameworks, advanced technologies, and international cooperation. By adopting proactive cybersecurity measures, Africa can safeguard its digital infrastructure and foster sustainable economic growth.

The economic impact of cybersecurity threats

The economic impact of cybersecurity threats on African governments and businesses is profound. Cyberattacks can lead to significant financial losses, damage to reputation, and disruptions to critical infrastructure. According to a report by the Centre for Strategic and International Studies (CSIS) and McAfee, cybercrime costs Africa an estimated $3.5 billion annually.

 

In addition to direct financial losses, cybersecurity breaches can undermine investor confidence. As Africa increasingly becomes a destination for foreign investment, particularly in sectors such as fintech, e-commerce, and telecommunications, robust cybersecurity is essential to maintaining investor trust. For example, the growth of the fintech sector in Nigeria, which attracted over $1.37 billion in investments in 2021 alone, could be jeopardized by inadequate cybersecurity measures.

 

Moreover, weak cybersecurity systems in Africa pose significant risks not only to the continent itself but also to the rest of the world. For example, inadequate cybersecurity systems within African suppliers or partners can become entry points for cybercriminals targeting global supply chains. An attack on a poorly secured African supplier can lead to broader disruptions, affecting global manufacturing, logistics, and distribution networks. Such breaches can lead to the theft of intellectual property, business secrets, or even the insertion of malicious code into products or software.

 

Global financial system vulnerabilities and threats to international financial transactions are of particular concern. African banks and financial institutions that are part of the global financial network may become conduits for cyberattacks on the international banking system. Weak cybersecurity in African financial systems can lead to the compromise of SWIFT transactions, ATM networks, and online banking platforms, with global repercussions. Cybercriminals may exploit weak financial regulations and cybersecurity controls in Africa to launder money or commit fraud on a global scale. This can destabilize financial markets and lead to significant losses for businesses and governments worldwide.

 

The Role of Governments in Strengthening Cybersecurity

African governments have a critical role to play in enhancing cybersecurity across the continent. Governments must invest in robust cybersecurity frameworks, enact comprehensive cyber laws, and foster international cooperation to combat cyber threats.

 

Several African countries have taken steps in this direction. South Africa, for instance, has developed a National Cybersecurity Policy Framework, which aims to improve the country’s ability to prevent and respond to cyber incidents. Similarly, Kenya has enacted the Computer Misuse and Cybercrimes Act, which criminalizes various forms of cybercrime and establishes mechanisms for monitoring and responding to cyber threats.

 

However, there is still a significant gap in cybersecurity readiness across the continent. According to the Global Cybersecurity Index (GCI) 2021 by the ITU, while some African countries like Mauritius and South Africa rank relatively high in terms of cybersecurity maturity, many others lag far behind. The report highlights the need for more countries to adopt and implement national cybersecurity strategies, enhance legal frameworks, and build capacity in cybersecurity.

 

The role of businesses in enhancing cybersecurity

Businesses in Africa must also prioritize cybersecurity as a critical component of their operations. This includes implementing strong cybersecurity policies, investing in advanced security technologies, and educating employees about the importance of cybersecurity. As cyber threats evolve, businesses must remain vigilant and proactive in safeguarding their digital assets.

 

Moreover, African businesses, especially small and medium-sized enterprises (SMEs), need to understand that cybersecurity is not just an IT issue but a business imperative. A study by Serianu found that 90% of African SMEs do not have cybersecurity measures in place, making them easy targets for cybercriminals . As these businesses increasingly rely on digital platforms, neglecting cybersecurity could result in catastrophic consequences, including financial losses, legal liabilities, and reputational damage.

 

The role of businesses in enhancing cybersecurity

Businesses in Africa must also prioritize cybersecurity as a critical component of their operations. This includes implementing strong cybersecurity policies, investing in advanced security technologies, and educating employees about the importance of cybersecurity. As cyber threats evolve, businesses must remain vigilant and proactive in safeguarding their digital assets.

 

Moreover, African businesses, especially small and medium-sized enterprises (SMEs), need to understand that cybersecurity is not just an IT issue but a business imperative. A study by Serianu found that 90% of African SMEs do not have cybersecurity measures in place, making them easy targets for cybercriminals . As these businesses increasingly rely on digital platforms, neglecting cybersecurity could result in catastrophic consequences, including financial losses, legal liabilities, and reputational damage.

 

International cooperation and capacity building

Given the global nature of cyber threats, international cooperation is crucial in enhancing cybersecurity in Africa. African governments and businesses must collaborate with international partners, including governments, multilateral organizations, and private sector companies, to share information, build capacity, and develop best practices.

 

For example, the African Union (AU) has developed the African Union Convention on Cyber Security and Personal Data Protection (Malabo Convention), which provides a legal framework for cybersecurity and data protection across the continent. While the Convention has been adopted by several countries, widespread ratification and implementation are still needed to ensure its effectiveness .

 

In addition, capacity-building initiatives, such as training programs and workshops, are essential for developing the skills needed to address cybersecurity challenges. The World Bank and African Development Bank (AfDB) have been involved in various initiatives to support African countries in building cybersecurity capacity and developing resilient digital economies.

 

Expert advice and development of targeted cybersecurity solutions

Specialized consulting firms like Crowe Infrastructure Africa can provide expert advice and solutions to develop not only robust cybersecurity policies but also effective systems for data protection of digital platforms operated by the public and the private sector. Effective cybersecurity systems for governments and businesses involve a combination of multi-layered technologies, practices, and policies designed to protect digital assets from a range of cyber threats. For African governments and businesses, adopting these systems and practices is crucial to safeguarding their digital infrastructure, ensuring the security of sensitive data, and maintaining trust with citizens and customers. As cyber threats continue to evolve, ongoing investment in these and other cybersecurity measures is essential to remain resilient in the face of emerging challenges.

 

Crowe Infrastructure can advise on the implementation cybersecurity systems such as:

 

1.Zero trust architecture: Zero Trust is a security model that assumes threats could be inside or outside the network, so every access request is fully authenticated, authorized, and encrypted before granting access. Google’s BeyondCorp framework is an implementation of Zero Trust architecture that provides secure access to internal applications without requiring a traditional VPN.
 
2.Security Information and Event Management (SIEM) Systems: SIEM systems like IBM QRadar help organizations detect, investigate, and respond to security threats in real time. These systems collect and analyze data from various sources across the IT environment, providing a comprehensive view of potential security incidents. Businesses using SIEM systems can identify and mitigate threats faster, reducing the potential damage caused by cyberattacks. For example, QRadar’s capabilities have helped companies in the financial sector comply with regulations and prevent data breaches by detecting anomalies early.
 
3.Endpoint Detection and Response (EDR) Systems: EDR systems like CrowdStrike Falcon provide continuous monitoring and analysis of endpoints (e.g., laptops, mobile devices) to detect suspicious activity. They are designed to provide real-time visibility, protection, and response to threats. CrowdStrike Falcon has been effective in protecting organizations against advanced threats like ransomware and zero-day exploits by enabling rapid detection and automated response to suspicious activities on endpoints.

 

4.Advanced Threat Protection (ATP): For example, Microsoft Defender ATP offers a unified platform for preventing, detecting, investigating, and responding to advanced threats. It integrates with other Microsoft 365 services, providing comprehensive protection for cloud and on-premises environments.

 

5.Data Loss Prevention (DLP) Systems: DLP systems like Symantec Data Loss Prevention are designed to detect and prevent unauthorized access or transmission of sensitive data. These systems monitor, detect, and block sensitive data being transmitted over email, instant messaging, or cloud storage.
 
6.Identity and Access Management (IAM): IAM systems like Okta provide tools for managing digital identities and access to resources. These systems enable single sign-on (SSO), multi-factor authentication (MFA), and automated provisioning and de-provisioning of user accounts. IAM systems have been instrumental in improving security for businesses by ensuring that only authorized users have access to specific resources and by simplifying the management of user identities across multiple platforms.
 
7.Firewalls and Intrusion Detection/Prevention Systems (IDS/IPS): Next-Generation Firewalls (NGFW), such as the one from Palo Alto Networks, combine traditional firewall capabilities with advanced features like application awareness, integrated intrusion prevention, and cloud-delivered threat intelligence. NGFWs provide businesses with robust perimeter defense and are capable of detecting and blocking sophisticated threats. They are essential in protecting against both external attacks and insider threats.
 
8.Cloud Security Solutions: For example, Amazon’s Web Services (AWS) Security Hub provides a comprehensive view of high-priority security alerts and compliance status across AWS accounts. It aggregates data from various AWS services and third-party tools to identify potential security issues.

 

At the national level, there is a need for African governments to develop coherent and coordinated national cybersecurity strategies. Israel is often cited as a global leader in cybersecurity, largely due to its comprehensive national strategy. The country’s approach includes a centralized cybersecurity authority, public-private partnerships, and a focus on fostering a cybersecurity ecosystem that includes education, research, and innovation. Israel’s cybersecurity strategy has made the country a hub for cybersecurity innovation and has significantly reduced the incidence of successful cyberattacks against critical national infrastructure.

 

Conclusion

As Africa continues to embrace digital transformation, the importance of enhanced cybersecurity for governments and businesses cannot be overstated. The continent faces a growing range of cyber threats, from data breaches and ransomware attacks to state-sponsored cyber espionage. The economic and social impacts of these threats are significant, making it imperative for African nations to prioritize cybersecurity.

 

Both governments and businesses have a role to play in strengthening cybersecurity across Africa. Governments must develop and implement robust cybersecurity frameworks, while businesses must invest in advanced security technologies and practices. Moreover, international cooperation and capacity-building efforts are essential to addressing the continent’s cybersecurity challenges.

 

In conclusion, enhanced cybersecurity is not just a technical requirement but a strategic necessity for Africa’s future. By investing in cybersecurity, African nations can protect their digital infrastructure, foster economic growth, and ensure the security and wellbeing of their citizens in an increasingly interconnected world.