African businesses are facing a growing cybersecurity cost burden as artificial intelligence makes cyberattacks more sophisticated, foreign exchange instability increases the price of security tools, and stricter data protection rules force organisations to rethink how they store and secure information.
The challenge is becoming more pronounced as companies expand their digital operations but struggle to match that growth with the financial resources and technical expertise needed to protect their systems.
A report by Heirs Technologies, titled Africa’s Cybersecurity Landscape 2026, reveals that more than 55 per cent of observed cybercrime cases across the continent now involve artificial intelligence. Attackers are increasingly using the technology to automate phishing campaigns, create convincing deepfakes, impersonate individuals and steal digital authentication credentials.
The 48-page report, which examines cybersecurity developments in Nigeria, Kenya and South Africa, warns that the growing use of AI is making fraudulent activities harder to identify and increasing the risks associated with the continent’s digital expansion.
The report cited global research showing that AI-generated phishing messages recorded click-through rates of up to 54 per cent, compared with 12 per cent for manually created attacks. The difference highlights how automation and personalised messaging can make cybercriminals more effective at deceiving their targets.
The scale of exposure is also reflected in research cited by the report, which found that 82 per cent of respondents in Sub-Saharan Africa said they or someone within their professional or personal networks had experienced cyber-enabled fraud in the preceding 12 months.
However, the threat is not limited to the sophistication of attacks. For many organisations, the cost of maintaining adequate protection is becoming another major obstacle.
A significant portion of the cybersecurity infrastructure used by African businesses is sourced from international vendors. Security software, cloud services and specialised protection systems are commonly priced in dollars and euros, leaving organisations exposed to exchange rate movements.
When local currencies lose value, the cost of purchasing, renewing and maintaining these tools rises, placing additional pressure on technology budgets.
According to the report, currency instability has forced some organisations to scale down security deployments or leave tools they have already purchased underutilised.
This can create weaknesses in corporate security systems, particularly when businesses cannot afford to deploy all the features required to detect suspicious activities and respond to cyber incidents effectively.
The situation presents a difficult balance for companies: they must invest in stronger digital protection while managing rising operational costs and competing business priorities.
Commenting on the findings, Heirs Technologies Chief Executive Officer, Obong Idiong, said the continent’s digital growth would only be sustainable if it was supported by reliable cybersecurity infrastructure.
“At Heirs Technologies, we believe Africa’s digital expansion must be built on an unshakeable foundation of trust and resilience. As cyberthreats become increasingly sophisticated, protecting this growth is essential to sustaining the continent’s digital transformation,” he said.
Beyond cyberattacks and currency fluctuations, changing regulatory requirements are also influencing how African businesses invest in technology infrastructure.
Governments are placing greater emphasis on data protection, security and the location of critical information, requiring organisations to reconsider where and how their digital assets are stored.
In Nigeria, enforcement of the Nigeria Data Protection Act, alongside the Central Bank of Nigeria’s directive requiring domestic payment data to be hosted locally by January 1, 2027, is making data sovereignty an increasingly important consideration for financial institutions.
These requirements are prompting businesses to review their existing cloud arrangements and assess whether their infrastructure meets local data-hosting obligations.
One option gaining relevance is the use of hybrid cloud architectures, which allow organisations to combine different hosting environments while retaining greater control over sensitive information and meeting regulatory requirements.
For businesses, however, adopting such systems involves more than changing where data is stored. It also requires investment in infrastructure, security controls and the technical capacity to manage different environments.
The findings point to a growing challenge for Africa’s digital economy. As businesses adopt more advanced technologies and governments tighten data governance requirements, cybersecurity is becoming a more expensive but increasingly essential part of doing business.
