Cybersecurity Challenges and Governance Issues in the Cyberspace 'When Stronger Passwords Are not Enough: Governing Cyberspace in Contemporary African Nations' Case Study: Can South Africa and Nigeria Secure Cyberspace without a Lock?

Policing Cyberspace in South Africa and Nigeria: Challenges and Opportunities The banking sector, as a centralized aspect of contemporary digital finance systems, is a vulnerable target. Not surprisingly, recent data indicate that cyberattacks have augmented by 300% over the past three years in Africa (Open Access Government). As per Kris Budnik and Kent Kirkwood, leaders in Cybersecurity services for PwC South Africa, this dramatic rise roots in “the tremendous value of information financial services they hold” (Budnik and Kirkwood). This trend was facilitated by the integration of “internet-based” transactions in the banking system, and ramping up internet penetration rates in countries like South Africa and Nigeria (Open Access Government). According to a 2020 McKinsey report, banks seek to expand market share by advertising the accessibility and popularity of their online services. Banks offer Mobile Financial Services (MFS), which include a range of services from payments, loans, investments, to insurance (Kola-Oyeneyin et al.). As evidenced in Exhibit 1, after South Africa reached the 100 million threshold, mobile money deployments have comprised the largest share of accounts (Kola-Oyeneyin et al.). The complexity of cyberspace and the sophistication of criminal actors creates numerous opportunities for potential abuse. As a result, it is in a society’s best interests to ensure that effective regulations are in place. When a cybercrime is committed, financial institutions suffer theft of funds, weakening of intellectual property, and loss of other valuable assets along with legitimacy. To combat cybercrime, emerging cashless economies need to invest in education and technology to tailor cybersecurity strategies to the local, regional, and international contexts. Since 2014, South Africa and Nigeria have taken a regional lead in developing and implementing financial technology. Unsurprisingly, South Africa is now considered “a new cybercrime harbor” (Open Access Government). Both countries are highly vulnerable to cyberattacks, which creates an interesting trend to monitor.