By Nabeel Rajab, Cisco Cybersecurity Specialist

Cybercrime poses such a significant threat to growth for developing nations that it’s keeping many countries in a perpetual loop of poverty. Certainly in South Africa, inadequate cybersecurity measures may significantly impact the country’s economic growth as criminals continue to exploit vulnerabilities. 

The World Bank’s World Development Report 2024 highlights how South Africa is stuck in the “middle-income trap”, where economic progress is hindered by limited growth in innovation. Escaping this cycle of poverty necessitates going “beyond investment-driven strategies”. The report goes on to say, “countries must also adopt modern technologies and successful business practices from abroad and infuse them across their economies as ineffective cybersecurity protocols have a profound impact on emerging economies.”  

Alarmingly, however, South Africa’s cyber threat preparedness remains low. Cisco’s 2024 Cybersecurity Readiness Index revealed that only 5% of South African companies are at a ‘Mature’ level of readiness—a significant drop of 19% year-on-year. Failure to address cybersecurity vulnerabilities costs the economy billions.

Indeed, Interpol estimates accumulated losses to cybercrime of more than R2 billion, and businesses are losing critical resources to defend themselves against escalating attacks. These threats directly undermine efforts to innovate, compete globally, and lift the country out of economic stagnation. To avoid falling deeper into this cycle, South Africa must prioritise building a cybersecurity culture across private and public sector levels, investing in education and infrastructure.  

South Africa needs stronger cybersecurity defence

Earlier this year, the Minister of Public Works and Infrastructure, Dean Macpherson, revealed cybercrime has cost the department R300 million over 10 years. In the most recent cyberattack in May, R24 million was stolen. In July, the processing of crucial laboratory tests at the National Health Laboratory Services was delayed due to a ransomware attack. 

While many developing nations are elevating themselves out of poverty thanks to innovation, others are stagnating. The failure to create a cybersecurity culture is a major obstacle to growth and must be addressed by educating the population about cybersecurity and investing in the skills and tools to fight cybercrime. 

These four foundational principles are essential for fostering a culture of robust and effective cybersecurity practices 

1. Leadership and foundational education: Driving a cybersecurity culture must come from the top down, with leadership prioritising education and awareness as the foundations for cybersecurity resilience. 

2. Embedding security habits: Security checks and habits should be integrated into the daily operations of both organisations and individuals to ensure continuous protection. 

3. Reducing human error: Due to both skills shortages and the lack of a security-minded culture, automation is going to play a critical role in continuously verifying the security posture and the reaction to threats of organisations and individuals. This will be an area that AI plays a significant role in. 

4. Collaboration for a comprehensive culture: Public-private partnerships are essential for building a broad cybersecurity culture, where governments provide reach, and the private sector contributes skills to scale security solutions effectively. 

As cybercrime becomes increasingly prevalent in emerging markets, its economic impact can no longer be overlooked. Building a strong cybersecurity culture is not a luxury—it's an urgent necessity. This will not only help secure South Africa's economic future but also empower the private sector and government to collaborate effectively in addressing the pervasive cyber challenges. People, processes, and innovation are critical components in navigating this pressing issue.