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Collaboration and Investment Key to Strengthening Africa’s Digital Payments Cybersecurity

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Omotayo Ogunlade Digital Payments Cybersecurity

By Omotayo Ogunlade

As the digital payments landscape in Africa expands, the need for robust cybersecurity measures becomes increasingly urgent. Trust and security are foundational to financial services, and as cybercriminals continue to become more aggressive and sophisticated, addressing any vulnerabilities is key to safeguarding the integrity of Africa’s digital financial ecosystem. In fact, Africa experienced the highest average number of cyberattacks per week per organisation in 2023 with a 23% increase compared to the previous year.

Africa’s digital financial ecosystem is still maturing, and as digital payments become more integrated across countries, and regions, and more interoperable across payment platforms, this increasingly complex environment can introduce new cybersecurity vulnerabilities.

And, as in an interconnected landscape, a single weak link can jeopardise the entire network, the continent’s financial institutions, governments and decision-makers must come together to collectively work towards establishing and maintaining baseline security standards across the industry. This requires building meaningful partnerships with relevant stakeholders, substantial investment and greater harmonisation of regulations and policies across the continent.

The imperative for investment and standardised regulations

Several challenges hinder the attainment of robust cybersecurity in Africa. One of the primary issues is the lag in regulatory frameworks, while a lack of significant investment in security would lead to vulnerabilities within the continent’s financial sector being exploited.

Fortunately, investment in cybersecurity has seen a notable increase over the past five years, reflecting a growing recognition of its importance. The rise of artificial intelligence (AI) and sophisticated cyber threats has driven firms to allocate more resources towards cybersecurity. And digital payment networks like Onafriq have strengthened their security posture by investing in intelligent tools that predict and proactively address potential threats.

Despite these advancements, there remains a disparity in investment levels across the continent. Ensuring that all financial institutions can meet necessary security standards requires coordinated efforts and substantial capital. This includes investing in state-of-the-art technology and continuous monitoring systems to detect and prevent malicious activities.

Additionally, regulators play a crucial role in setting and enforcing security standards. And yet the pace of regulatory development often falls behind the speed of innovation in the fintech space. Harmonising regulations across different African countries is essential to create a consistent and secure environment for digital payments by adopting best practices and global standards. This is necessary to avoid fragmentation of the digital payments landscape while effective enforcement of these standards is vital to maintaining a secure financial ecosystem.

A need for cybersecurity skills and a security-first culture

A truly secure payment environment requires buy-in from every part of the ecosystem’s value chain, including the end user. Not only must financial institutions adopt a security-first approach, embedding robust security measures into every aspect of their operations, but educating users about security practices is just as crucial.

As digital payments become more prevalent, financial institutions must design products with built-in security features and continuously educate users on safe practices. This includes secure PIN usage, recognizing phishing attempts, and safeguarding personal information.

For example, Onafriq exemplifies this approach by ensuring that security is a priority from the design stage. By securing networks, protecting sensitive data, and conducting regular third-party audits, we have been able to maintain a strong security record. This proactive stance is essential for preventing breaches and ensuring customer trust.

More than this, there is a growing need to build the cybersecurity capacity needed to sustain the digital payments landscape. Africa faces a shortage of skilled cybersecurity professionals, which hampers the ability to address emerging threats effectively. A cybersecurity assessment conducted by the African Union Commission and the United Nations Development Programme found that African countries had a cybersecurity competence of 0.21 out of 1 with more than 70% of African nations requiring additional cybersecurity infrastructure.

Financial institutions and governments must invest in training programs, internships, and continuous education to develop a skilled workforce capable of managing cybersecurity challenges. But, retaining talent within Africa also remains a significant issue. Many trained professionals seek opportunities abroad, exacerbating the skills gap. Addressing this requires creating conducive environments that offer competitive opportunities and career growth within the continent.

Cybersecurity is a cornerstone of Africa’s digital payments landscape. To achieve a secure and resilient financial sector, Africa must invest in robust cybersecurity infrastructure, foster regulatory harmonisation, and prioritise collaborative efforts among financial institutions. By addressing these challenges, Africa can build a secure digital payments ecosystem that supports economic growth and instils trust among users.

Omotayo Ogunlade is the Chief Technology Officer at Onafriq

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Data Depletion, Nigerian Consumers and the FCCPC’s Silent Intervention

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Data Depletion

By Edwin Uhara

The various telecommunication companies in the country have come under intense pressure from the Nigerian consumers over rapid depletion of mobile data services despite the high cost of purchasing mobile data; with some accusing some of the regulatory agencies of not doing their jobs properly.

Apart from Nigerians, I have personally experienced such unsatisfactory service in recent times until I came across various online campaign materials against telecom service providers and some regulatory agencies like the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission who have all been accused of doing nothing while the unhealthy practices continued in the telecoms industry.

“According to report, telecom subscribers are sending emails and direct messages to the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission, demanding an investigation into what they describe as unexplained data consumption.”

In the midst of such accusation, operators insist that there is no mechanism for reducing customers’ data, arguing instead that rising consumption is due to users behaviour, particularly the shift from 3G and 4G to 5G and increased video streaming habit.

Such controversy comes on the  hills of the recent intervention by the Nigerian Senate urging the Federal Ministry of Communications, Innovation, and Digital Economy to engage operators on reviewing data and internet-related service costs.

While data consumption issues have remained a pressing concern in recent times, the situation became more pronounced since the implementation of new tariff by service providers.

“The report however added that many subscribers who shared screenshots of emails sent to regulators on social media remained unconvinced, arguing that the problem lies in the operators’ billing systems rather than their usage habits.”

“It added that data prices are too high these days. Every Nigerian should report the operators to NCC, FCCPC, and send them thousands of emails; otherwise, this price hike won’t stop,” one of the customers said.”

“Not only has data become more expensive, but it also seemed to deplete faster than before. This is unacceptable,” another user complained.”

Nigeria’s internet consumption crossed the one million terabyte mark for the first time in January 2025, highlighting the surging demand for internet services and Nigeria’s increasing dependence on digital connectivity.

To be very honest, I have followed the activities of the FCCPC for a very long time now, and I have also written extensively about the commission’s activities to place me in a better position to know what the agency is doing to stop exploitative practices in the country.

During the nationwide food crisis last year, the commission was in the forefront of the war against exploitative practices with many raids against some manufacturers who were caught in the shabby practice.

We also remember the open confrontation between the commission and a minister last year over some unhealthy practices involving a popular airline operator in the country.

And most recently, the commission is in court over some issues involving MultiChoice company, the parent company of DStv and Gotv over some of it’s billing systems.

Like the situation in the telecoms industry, the price hike by MultiChoice saw DStv Compact move from N15,700 to N19,000. Compact Plus from N25,000 to N30,000. Premium from N37,000 to N44,500, and GOtv Supa Plus from N15,700 to N16,800.

Following the new price regime, the FCCPC directed MultiChoice to suspend the increase pending regulatory review, but the company went ahead with the price adjustment, leading to the legal dispute now before Justice James Omotosho.

I can go on to name many of the battles against exploitative practices the FCCPC addressed last year, but will not do so because I don’t want this article to be viewed as a public relations material by my readers.

However, I managed to get across to a staff of the FCCPC who do not want his name in print over data depletion which Nigerians are complaining about but he told me that the commission is already addressing the concerns raised by Nigerians and promised that the outcome of such investigation would soon be made public.

Therefore, I appeal to Nigerians to exercise more patience as the issue is been addressed.

Comrade Edwin Uhara is A Public Affairs Commentator and writes from Abuja

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World Bank Backs Raxio With $100m for Data Centres in Africa

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Raxio

By Adedapo Adesanya

The World Bank, through its private investment arm, the International Finance Corporation (IFC), has injected $100 million investment in regional data centre developer and operator Raxio Group as it joins the rush into digital data in Africa.

Digital demand on the continent is surging, but infrastructure remains scarce as many still rely on Europe or South Africa for hosting.

Africa accounts for less than 1 per cent of the world’s data centre capacity even as mobile data usage grows by around 40 per cent annually.

Cloud computing and tech giants such as Amazon Web Services, Microsoft Azure, and Huawei are ramping up partnerships and presence on the continent.

Recall that Equinix launched its data centre in Lagos as part of efforts to boost digital economy on the continent.

The debt funding by IFC is its largest such investment to date in Africa – reflects rising interest from global institutions in the continent’s digital economy, where mobile money, AI-driven services and cloud-based platforms are rapidly expanding.

Hosting data locally reduces costs, improves speeds and gives governments more control over cybersecurity and regulation.

The IFC picked Raxio which is building a network of top standard data centres, including one in Ivory Coast with construction underway in Mozambique, Ethiopia and Democratic Republic of Congo. It launched its first facility in Uganda in 2021.

The expansion aligns with views that Africa is the next battleground for cloud services.

Speaking on this, Mr Sarvesh Suri, IFC regional industry director, infrastructure and natural resources in Africa, said improving digital connectivity and building the backbones of digital infrastructure are of key importance to support economic growth in Africa

“Data centres as such and overall digital connectivity is an important area of focus for the IFC,” he said.

Identify the challenges such as power supply, complex regulation and political instability can deter commercial players, Mr Suri noted that development finance institutions play a crucial role by de-risking early investments that can unlock long-term private capital.

“We bring in the right kind of instruments to help support investors to reduce the risk over all this, to make sure that these investments continue to be long-term, sustainable, and profitable, but also economically beneficial for the countries,” said Mr Suri.

“We see the interest, the support, the engagement, the collaboration we are getting from the governments where we operate, who really want this to happen,” added Mr Raxio Group CEO Robert Skjodt.

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Nigerian Tech Firms Raise $100m in Q1 2025 Amid Funding Squeeze

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fintech innovators

By Adedapo Adesanya

Nigerian tech firms attracted just $100 million in funding in the first quarter of 2025, raising worries about investment crunch into Africa.

This is part of a wider slowdown in funding on the continent as funding into the African tech ecosystem dropped 5 per cent to $460 million in the first quarter of 2025, according to data by Africa: The Big Deal.

The decline shows the consistent drop in venture capital funding on the continent, which fell from $486 million raised in the same period of 2024,

The data insight firm, which tracks funding rounds of $100,000 and above, revealed that nearly $300 million was raised by start-ups in January, and fell to $119 million in February.

March saw one of the lowest monthly totals since late 2020, with just $50 million in funding announced.

The Big Deal noted that despite a steady number of start-ups securing funding, the lack of deals exceeding $10 million significantly impacted overall investment figures.

“Q1 2025 is the second-lowest quarter in terms of start-up funding since late 2020,” the insight company noted.

“However, things are looking more positive if we focus on the number of start-ups that announced at least $1 million in funding during the quarter, with 52 such deals aligning with the 2023-2024 average,” a post seen by Business Post showed.

Nigeria alongside Kenya, South Africa, and Egypt – referred to as the Big Four – got 83 per cent of funding during the period under review.

Nigeria attracted roughly over $100 million in funding (24 per cent), same as Kenya (24 per cent) and followed closely by South Africa with $100 million (22 per cent).

Egypt secured $61 million (14 per cent), while Togo emerged as a surprise entry in the top five, buoyed by Gozem’s $30 million Series B funding round.

Fintech remained the dominant sector, accounting for nearly half (46 per cent) of total investment, the report disclosed with deals including LemFi’s $53 million raise and Naked’s $38 million.

The energy sector followed with an 18 per cent share of the total funding, while logistics and transportation startups secured 10 per cent.

It raised eye brows over the disparity in gender based funding with just over 2 per cent ($10 million) of Q1 funding went to female CEOs.

The largest such deal being a $6.2 million grant awarded to South African biotech firm, African Biologics.

Excluding grant funding, female-led start-ups accounted for a mere 0.7 per cent of all investments  while in contrast, Big Deal added that 79 per cent of total funding went to either solo male founders (11 per cent) or all-male founding teams (67 per cent).

It revealed that diverse founding teams attracted 20 per cent of the investment, this remains a modest improvement compared to previous quarters.

“A mere 1% was invested in solo female founders or female-only teams,” the report said.

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