African enterprises are facing an unprecedented digital onslaught as cybersecurity officially claims the top spot on the 2026 continental risk hierarchy.
A new report from the Internal Audit Foundation reveals that 62% of Chief Audit Executives now prioritize cyber-defense over all other operational hazards, fueled by a staggering $10 billion annual drain from cybercrime.
As hackers weaponize AI to bypass legacy security and multi-factor authentication, the region’s rapid digitalization has become a double-edged sword, forcing organizations to pivot from reactive recovery to AI-driven, proactive auditing to safeguard the continent’s economic future.
In 2026, cybersecurity has emerged as the foremost concern for African businesses, with 62% of Chief Audit Executives (CAEs) in the region identifying it as their top risk. This finding comes from the 2026 Risk in Focus report, published by the Internal Audit Foundation in partnership with the African Federation of Internal Auditors (AFIIA). The report underscores how rapid digitalization across the continent presents enormous opportunities, yet simultaneously increases vulnerability to cyber threats.
Cybersecurity is now the number one risk for African organizations, with around 60% of internal audit functions prioritizing it as their main focus. This shift reflects the growing awareness of the threats posed by sophisticated cyberattacks, which continue to evolve in both scale and complexity.
Risks related to digital disruption, particularly the use of Artificial Intelligence (AI), have also seen a marked increase. These risks jumped from sixth to third place in this year’s risk rankings, demonstrating that while technological advancements bring innovation, they also create new vulnerabilities that organizations must address proactively.
One of the most alarming trends highlighted in the report is the rise of AI-enhanced cyberattacks. Hackers are increasingly leveraging AI to develop more effective attacks, such as AI-powered identity impersonation schemes, which are harder to detect and prevent with traditional security measures. The financial impact of these threats is significant. In 2023 alone, cybercrime cost the African continent an estimated $10 billion USD, affecting businesses, governments, and consumers alike.
The report emphasizes that cyber risks do not exist in isolation. Instead, they are part of a complex web of interconnected challenges. Weak cybersecurity directly increases the risk of fraud.
While digital tools and automation have helped governments and financial institutions reduce fraud, they also expose less digitally literate users to new forms of cyber-fraud. Infrastructure vulnerabilities further compound the problem. Organizations dependent on computerized systems face heightened risks from power outages and targeted attacks, and hackers have begun successfully bypassing multi-factor authentication (MFA) mechanisms that were once considered gold standards in security. Additionally, many organizations face resource constraints, which prevent the proactive adoption of digital anti-fraud systems. Often, companies only respond after a major breach has occurred, highlighting the reactive nature of current defenses.
In response to these evolving threats, internal audit functions across Africa are adapting their strategies. Many CAEs are shifting toward a faster advisory approach rather than relying solely on traditional audits.
This allows organizations to respond more quickly to emerging AI and digital risks. Cultural awareness is also being prioritized. Since low literacy and limited security awareness can exacerbate vulnerabilities, auditors are embedding cybersecurity checks into all technology audits and employing tools such as cybersecurity quizzes to increase awareness among staff.
Additionally, audit functions are modernizing their tools. Organizations are moving away from legacy software and over-reliance on Excel, instead adopting AI-embedded auditing tools, including large language models (LLMs), which allow greater automation of controls and more efficient detection of potential breaches.
As Africa’s digital economy expands, the report makes clear that cybersecurity can no longer be treated as a peripheral concern. It is a strategic imperative. By combining advisory services, cultural awareness programs, and AI-driven tools, internal auditors are positioning themselves to help organizations navigate an increasingly complex cyber threat landscape. Protecting data, infrastructure, and financial resources is essential not only for individual organizations but for the continent’s broader digital future.
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