In a year when digital transformation is reshaping the way companies operate across Africa, a fresh risk landscape has emerged with one clear leader: cybersecurity. A recently released study by the Internal Audit Foundation in partnership with the African Federation of Internal Auditors shows that cyber threats are now the foremost concern for businesses across the continent. According to the report, an overwhelming 62 percent of Chief Audit Executives in Africa flag cybersecurity as the biggest business risk in 2026. This represents a striking shift in organisational priorities, as more leaders confront new vulnerabilities in the rapidly changing digital economy.
The study, drawn from responses across 39 countries and reflecting the views of over a thousand senior audit professionals, highlights the stark reality that technological progress brings both unprecedented opportunities and equally significant dangers. As more African firms adopt digital tools, from mobile money systems to cloud-based operations, the surface area for potential cyberattacks expands. Threats range from data breaches and ransomware to more advanced techniques powered by artificial intelligence.
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A Growing Cybersecurity Threat in a Digital Economy
Just a few years ago, many regional businesses viewed cybersecurity as a technical concern for IT teams. Today, it sits at the very top of risk registers. The report notes that internal audit functions now rank cyber risk even higher than traditional business risks such as financial instability and fraud. In fact, around 60 percent of internal audit departments classify cybersecurity as their main focus for the coming year.
One major reason for this heightened concern is the growing complexity of attacks. Cybercriminals are increasingly using AI-enhanced methods to bypass conventional security defences. These include impersonation schemes that mimic trusted identities, phishing campaigns that are harder to detect, and automated systems capable of dynamically adjusting tactics mid-attack. These developments make it harder for legacy security systems to keep pace, leaving businesses vulnerable to breaches that can disrupt operations or compromise sensitive data.
The financial toll of such breaches is serious. Estimates suggest that cybercrime costs the African continent around ten billion US dollars in 2023 alone, with losses felt by companies of all sizes, public institutions, and individual consumers. This figure underscores not only the direct financial impact of attacks but also the secondary costs of reputational damage, regulatory penalties, and loss of client confidence.
The risk landscape is uneven across regions. East Africa, for example, shows some of the highest levels of concern, with 65 percent of auditors in that subregion naming cyber threats as a top risk. Southern and North Africa follow closely, at about 64 percent. In contrast, auditors in Central Africa are somewhat less alarmed, with approximately one in three indicating cybersecurity as a major threat. Regardless of the differences, no region is untouched by the challenge.
Linked Risks Beyond Cybersecurity
The report makes clear that cyber risk does not exist in a vacuum. In many cases, digital vulnerabilities intersect with other business challenges. For example, weak cybersecurity practices can make it easier for fraud to occur, particularly in regions where digital literacy remains limited, and users may be unaware of emerging online threats. At the same time, infrastructure issues like power instability can compound digital risk, increasing the chance of successful attacks when systems are left exposed during outages.
Another concern reflected in the report is the erosion of confidence in even the strongest existing defences. Multi-factor authentication, once considered a robust line of defence, has been breached in some sophisticated attacks, prompting leaders to reassess what combinations of controls truly protect critical systems. Many organisations also admit they do not have sufficient resources to invest proactively in anti-fraud and cyber-defence systems, reacting only after severe breaches occur rather than preventing them.
In addition, digital disruption itself, including the adoption of AI tools in business processes, has jumped sharply in perceived risk. The percentage of auditors identifying digital disruption as a key threat has risen dramatically compared with previous years, highlighting the double-edged nature of technology as both a driver of growth and a source of new uncertainties.
How African Businesses Are Responding
Faced with these evolving threats, many African organisations are rethinking how they manage risk. Rather than relying solely on traditional audit cycles and compliance checks, chief audit executives are shifting to a more proactive, advisory approach. This enables companies to anticipate threats sooner, adjust risk frameworks, and enhance resilience before problems escalate.
Education and awareness are also becoming central pillars of security strategy. Given that low levels of cybersecurity awareness among staff can make businesses more susceptible to manipulation, internal audit teams are embedding cybersecurity checks into routine technology audits. They are also deploying tools such as internal awareness quizzes to lift baseline understanding of common threats among employees at all levels.
On the technology front, many organisations are modernising tools and processes, moving away from outdated systems like manual spreadsheets and legacy software. Instead, they are adopting AI-powered auditing tools that automate routine checks, flag anomalies faster, and provide deeper insights into potential weak points. These innovations include the use of large language models capable of scanning reports and logs far more efficiently than was previously possible.
Companies are also investing in stronger cybersecurity frameworks to protect key assets. These include network segmentation, continuous monitoring systems, and incident response plans designed to limit damage when breaches occur. Some are even engaging external experts to simulate attacks and test defences in controlled environments, helping them understand where improvements are most urgently required.
Looking Ahead: Securing Africa’s Digital Future
As Africa’s digital economy continues its rapid expansion, cybersecurity will remain at the forefront of strategic priorities for business leaders. The report sends a clear message that treating cyber risk as a purely technical issue is no longer viable. Instead, it must be embedded in corporate governance, risk management, and organisational culture.
Protecting data and digital infrastructure is essential not only to safeguard individual businesses but also to underpin confidence in the broader digital ecosystem. With mobile financial services, e-commerce platforms, and cloud technologies driving innovation across sectors, ensuring robust defences will be critical to maintaining growth and trust among consumers and investors alike.
In 2026 and beyond, African organisations that invest in awareness, modern technology, and proactive audit strategies will be better placed to face the constantly shifting terrain of cyber threats. The need for resilient and adaptive security practices has never been greater, and the leaders who act today will help shape a safer, more secure digital future for the continent.
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