By Peter Nalika
Cybersecurity used to be in the realm of technical solutions, a topic of IT departments only not long ago. It has now become a boardroom issue, and is now more and more a national economic issue. Cyber risk is not peripheral in a world where almost all industry segments have become reliant on digital systems and, as such, it is systemic.
The ransomware attack on a hospital is not only a virus paralysing computers, but also endangers the lives of patients. An attack on a financial institution will not only reveal data. It will also damage the trust in the banking system. The impact on the economy of a critical infrastructure, such as power grids or ports, can be catastrophic when attacked.
Putting a Price on Cyber Insecurity
Cybercrime is one of the biggest illicit economies in the history of the world. It is estimated that it costs the globe about 6 trillion dollars each year. The menace is escalating in Africa. Over fifty percent of cyber incidents in the continent are attributed to Kenya, Nigeria, and South Africa. The Communications Authority’s estimates indicate losses around KES 11 billion in 2023. Other reports citing figures between KES 10.71 billion and KES 20.4 billion for specific periods.
The effects are not only financial. When environments are perceived to be unsafe, investor confidence is lost. Once disrupted, digital services require time to win the trust of people. The poor state of cybersecurity is an eye-catching weakness to governments that have been trying their best to attract foreign direct investment. None of the multinationals would like to expose intellectual property or customer data to an insecure environment.
The Significance of Cybersecurity as a Driver of Development
The former story presents cybersecurity as a cost center, which consumes budgets without much apparent payoff. That mindset must change. Infrastructure Cybersecurity is infrastructure, just like roads are to commerce. Efficient systems promote creativity, investment, and service continuation. Cybersecurity is, in that regard, not only protection but an instrument of growth.
African states and corporations need to take action on multiple levels in order to place cybersecurity as a central concern within economic policy. To begin with, there is an acute shortage of cybersecurity experts on the continent. It is important to design large-scale training models, scholarships, and apprenticeships that will create a robust stream of cyber defenders. Collaborations with universities and the private sector will also play a key role in hastening this process.
Meanwhile, governments must establish sound regulatory frameworks that raise the minimum level of security across economies. Strong data-protection laws, mandatory incident-disclosure requirements, and clear sector-specific guidelines play a critical role. While the adoption of the Data Protection Act marks a step in the right direction, authorities must significantly strengthen enforcement and public awareness efforts. Another key priority is securing critical infrastructure—namely the power, transport, health, and financial sectors which are too vital to remain exposed. Governments should therefore mandate regular cyber stress testing for operators of essential services to identify and reduce risks before they escalate into critical threats.
Governments and industry stakeholders must also give special attention to small and medium-sized enterprises, which form the backbone of African economies. SMEs often lack the resources to defend themselves and therefore present easy targets for cybercriminals. By providing shared security services, affordable cyber-insurance, and practical toolkits, governments and industry associations can strengthen SMEs and better prepare them to withstand cyber threats.
Effective cybersecurity depends on strong partnerships between the state and the private sector. Governments cannot act alone. The private sector owns and operates much of the digital infrastructure, while civil society plays a crucial role in raising public awareness. Governments should increase information sharing between national CERTs and businesses. Joint cyber exercises such as those conducted in South Africa’s financial sector demonstrate that coordinated action can significantly reduce losses during real-world cyberattacks.
The Urgency of Acting Now
Hackers are developing at an alarming rate. They are using artificial intelligence to produce persuasive phishing attacks, automate intrusion efforts, and disseminate fake news. It is shortsighted to wait for a major crisis to tighten the defences.
Those countries that lead the curve will have a competitive advantage: greater investor confidence, resilience of services, and a haven reputation when it comes to digital business. The ones that do not keep pace may lose the money as well as credibility within the international market.
Cybersecurity has ceased to be an IT service. It is an economic policy. It is national security. And it is foundational to digital trust. Leaders who grasp this will not only avoid losses but also make their economies digitally prosperous. The choice for Africa is stark: invest in resilience now, or pay the much higher cost of inaction later.
