As Africa experiences rapid economic growth, cybercrime appears to be keeping pace.

For example, in 2023, the average number of weekly cyberattacks on African businesses grew by 23% compared to previous years, the fastest increase globally, according to Interpol’s 2024 African Cyberthreat Assessment, with ransomware and Business Email Compromise (BEC) topping the list of serious threats. Digital illiteracy, outdated infrastructure and a lack of security professionals all pose challenges to preventing economic loss from cybercrime, according to a report published last month by Access Partnership and the Centre for Human Rights at the University of Pretoria.

As the continent’s gross domestic product (GDP) grows estimated at $4 trillion by 2027Cyberattacks and cybercrime pose significant barriers to economic development. African countries need to accelerate their cybersecurity skills training, said Nicole Isaac, vice president of Global Public Policy for technology giant Cisco.

“Africa has the highest burden of cyber threats compared to all other continents,” she says. “Almost all financial leaders in Africa consider cybercrime to be a significant threat, as do macroeconomic conditions and political and social instability.”

Africa currently accounts for eleven of the world’s twenty fastest growing economies, with Niger, Senegal and Libya being the region’s strongest economies with growth rates of at least 7.9%. according to the African Development Bank GroupSouth Africa, Nigeria and Egypt are the three largest economies in the region, but none have signed the Malabo Convention, the cybercrime protocols drawn up by the African Union.

South Africa sees cybercrime costing the economy around R2.2 billion (US$123 million) a year, largely due to a lack of awareness about cybersecurity, says Heinrich Bohlmann, associate professor at the Department of Economics at the University of Pretoria in South Africa.

Cybercrime often stems from users at home and work not being aware of cyber risks and scams, he says. “They’re too quick to click or respond to things they shouldn’t, and in the workplace that can obviously have huge implications for businesses.”

A learning moment

The rising costs of cybercrime should be considered a chanceespecially as Africa begins its digital transformation. While many Western and Asian populations are rapidly aging, Africa is seen as a source of young, tech-savvy workers of the future, who will be well-positioned to leverage new technologies, such as AI, for business purposes and to improve cybersecurity.

African countries will need to move quickly and develop partnerships just as quickly, says Caroline Parker, managing director of FTI Consulting’s financial communications practice in South Africa.

“It is essential that governments take the necessary protective measures by developing robust regulatory frameworks to enhance cybersecurity best practices,” she says. “This cannot be an isolated response by individual governments, given how portable the problem is across borders. Therefore, harmonization of standards and regulations on a regional basis is required.”

Cybersecurity policy protection by a selection of African countries. Source: Elevating Africa’s Cyber ​​​​Resilience report

AI could be a game changer in Africa, with the economic value of AI in sub-Saharan Africa expected to create more than $130 billion in growth, according to the report “Elevating Africa’s Cyber ​​​​Resilience” from Access Partnership and the University of Pretoria. AI has the potential to empower underrepresented groups and provide them with the skills and opportunities needed to participate safely in the digital economy, says Cisco’s Isaac.

“AI systems can significantly enhance human capabilities in detecting threats and responding to incidents through machine learning and deep learning techniques,” she says. “They can also simplify cybersecurity operations by automating routine tasks such as malware detection and vulnerability assessment.”

Need for better cybercrime data

The reports and estimates also underscore the need for better data on the problem of cybercrime, as current estimates typically lack supporting evidence and appear to be exaggerated. For example, a data point in the “Elevating Africa’s Cyber ​​​​Resilience” report says cybercrime will cost African economies 10% of GDP. The UN Economic Commission for Africa also cites the 10% figure. Neither report has supporting data.

In reality, the cost is likely to be 30 times lower. Estimates of the cost of cybercrime in Africa typically range from 4 billion dollars And 10 billion dollars per year. With Africa’s current GDP estimated at $2.81 trillion by the International Monetary Fundthe largest cost of cybercrime is approximately 0.3% of GDP.

According to Bohlmann of the University of Pretoria, the data has not yet been properly examined.

“For Africa as a whole, (the cost) could be anything,” he says. “But the 10% of GDP, which is $4.12 billion, is clearly a typo or a mistake.”