Report By: Gillian Darko, Chief of Staff and Director of Strategy
Africa is undergoing a digital renaissance. From the rise of mobile technology and fintech innovation to deepening internet connectivity, the continent is experiencing an economic transformation once thought to be decades away.
Tech hubs are thriving, and digital services are reaching even the most remote rural communities, reshaping how people live, work, and transact.
At the center of this progress is the new generation of entrepreneurs, developers, and digital natives building innovative solutions for both local needs and global markets.
Governments are accelerating the digitization of public services, while sectors like agriculture, healthcare, and education are adopting technology to drive greater access and efficiency.
According to projections, Africa’s digital economy could contribute up to $712 billion to the continent’s GDP by 2050, a clear signal that the future is digital.
Nowhere is this momentum more evident than in the digital payments space. Mobile money platforms, fintech apps, and payment APIs have revolutionized financial inclusion, serving hundreds of millions of users across the continent.
Africa’s digital payments market is projected to hit $1.5 trillion by 2030, an extraordinary leap powered by rising internet penetration and a flourishing fintech ecosystem.
According to the Nigeria Inter-Bank Settlement System (NIBSS), Nigeria recorded a staggering ₦234.4 trillion in electronic payment transactions in Q1 2024 – an 89% year-on-year increase from ₦123.9 trillion in Q1 2023.
This was driven by mobile banking, POS terminals, and USSD channels, reflecting the country’s accelerating shift toward a cashless economy.
Meanwhile, South Africa’s fintech sector generated ZAR77.7 billion (approximately US$4.2 billion) in revenue during the same period, with digital payments, lendtech, and insurtech accounting for over 60% of the market.
However, with this rapid digital expansion comes an escalating challenge: cybersecurity.
The threat
Just as digital pathways open doors to prosperity, they also present new avenues for malicious actors.
Cybercriminals target financial gaps, weak authentication, unpatched systems, and exposed APIs, and exploit them with phishing, malware, and ransomware. In Africa, the shift to cloud services and mobile platforms has outpaced investment in robust security.
Trust is the currency of finance, and when users send money, they expect that it will arrive safely and without interference. Yet in 2023, Africa experienced the highest average number of cyberattacks per week per organisation, a concerning 23% increase from the previous year.
This rise is not theoretical; it translates into tangible losses, impacting financial institutions, businesses, and individuals. Left unchecked, these trends can erode confidence, slow the uptake of digital finance, and undercut economic growth.
Fortunately, cybersecurity investment has grown significantly over the past five years, signaling a broader acknowledgment of its critical role in today’s digital landscape.
The emergence of artificial intelligence (AI) and increasingly sophisticated cyber threats has compelled organizations to ramp up their security efforts and dedicate greater resources to protecting digital assets.
Why collaboration matters
Collaborations are the best and most rigorous ways to help protect Africa’s digital payments market.
Single companies can undoubtedly help achieve this, but for a more robust protection strategy, Governments, financial institutions and fintech innovators must build coalitions to strengthen Africa’s digital payments market. Governments can update regulations and share threat intelligence.
Financial institutions can adopt best‑practice controls and report incidents promptly.
Fintech innovators have a role too: integrating advanced fraud detection, secure APIs, and real-time monitoring into their platforms.
Public-private partnerships can multiply impact. By working together, governments, private sector players, and users, we can build a robust digital Africa, ensuring that the financial inclusion and economic empowerment is realised safely for all.
Investing in resilience
Building cybersecurity muscle also means investing in public awareness of malware and ongoing education.
Public awareness is an often underestimated defence layer. Many cyber threats succeed due to a lack of user knowledge about common scams or secure online practices.
Comprehensive awareness campaigns can empower individuals and businesses to identify risks and adopt safer digital habits. Also, offering ongoing education for developers and operations teams can help mitigate these threats.
Building a secure digital Africa starts now
At Yellow Card, we believe that the future of Africa’s digital economy hinges on the strength of its security.
As the largest licensed stablecoin-based infrastructure provider operating in 20 African countries and the emerging markets, we understand the critical importance of trust and robust protection in every transaction.
We are committed to not only providing secure platforms but also advocating for governments, financial institutions, and fintech companies to make cybersecurity a shared priority.
By working together, we can lock down vulnerabilities and ensure that Africa’s growing digital economy remains secure and resilient.
Source: www.thenewindependentonline.com
