Impact of cybersecurity threats on investment

The global clean energy transition holds a new promise for Africa's economic and social development. With millions of people becoming part of the digital world in Africa every few years, the continent is seeing a rise in the use of digital services. However, as this digital transformation continues, cybersecurity threats are posing a greater risk to the region. CNBC Africa's Ridhima Shukla recently spoke to the lead at the Centre for Cybersecurity at the World Economic Forum to explore how these threats are impacting Africa's investment landscape and the opportunities they may present. The interview highlighted key insights into the perception of cybersecurity, the impact on investments, skill development, and the role of governments and private sector in tackling cyber threats. Key Points: 1. Perception Drives Investment Decisions: The interview underscored the significant influence of perception on investment decisions related to cybersecurity. The cybersecurity outlook report, developed in collaboration with Accenture, revealed that geopolitical instability was a major factor driving business leaders' concerns. A high percentage of leaders believed that geopolitical instability increased the likelihood of catastrophic cyber attacks in the next two years. This perception led companies to re-examine their commercial relationships and evaluate cybersecurity as a crucial factor in deciding which countries to invest in. 2. Strategic Approach to Cybersecurity: Surprisingly, less than 50% of companies surveyed considered cybersecurity when evaluating investment destinations or operational locations. This shift indicates a more strategic approach to cybersecurity investments, emphasizing the importance of cyber resilience and capacity building. Governments and international organizations are recognizing cybersecurity as a crucial factor in protecting investments, as highlighted by initiatives like the World Bank's multi-donor fund for cybersecurity capacity in 2021. 3. Skill Development and Investment Opportunities for Africa: The interview discussed the growing demand for cybersecurity professionals globally, with millions of vacant positions in the sector. Africa presents a significant opportunity for skill development to address this gap, with examples like the Maharishi Institute in South Africa partnering with ABSA Bank to train individuals in cybersecurity. By investing in skill development, African countries can create a skilled workforce capable of meeting the increasing demand for cybersecurity experts. Additionally, the potential for Africa to become a hub for cybersecurity companies was highlighted, with opportunities for multinational corporations to establish cybersecurity centers in the region. Quote: "Demographically trying to fill a skills gap of three million people is going to be extremely difficult unless you have a focus on Africa. Africa has the talent, creativity, and engagement needed for investment in cybersecurity." The interview concluded with a positive outlook for Africa's cybersecurity landscape, emphasizing the region's potential for investment and skill development to address cybersecurity challenges and opportunities.