South African Businesses Lose R2.2 Billion Annually to Cyberattacks: Vodacom Report

South African Businesses Lose R2.2 Billion Annually to Cyberattacks

A new Vodacom Business report titled Cybersecurity as an Imperative for Growth has unveiled alarming statistics about the state of cybersecurity in South Africa. According to the report, 80% of South African companies experienced a cyberattack in the past year, resulting in a staggering R2.2 billion in annual losses.

These findings, produced in partnership with Omdia, emphasize that robust cybersecurity is no longer optional but essential for business resilience and growth.

Key Insights from the Report

1. Prevalence of Cyberattacks:
   • 80% of businesses reported experiencing a cyberattack.
   • Ransomware is identified as the most severe threat, with 41% of global organisations listing it among their top three challenges.
2. Economic Impact:
   • Cyberattacks cost South African businesses R2.2 billion annually, according to the South African Banking Risk Information Centre (SABRIC) and the Council for Scientific and Industrial Research (CSIR).
3. Workforce Preparedness:
   • Only 32% of organisations prioritize cybersecurity training for employees, highlighting a critical gap in internal resilience.

Why Cybersecurity is Crucial for Growth

In an era where businesses are increasingly reliant on cloud technologies, IoT, and mobile networks, cybersecurity plays a pivotal role in enabling growth. Without proper measures, companies risk not only financial losses but also reputational damage and operational disruptions.

“By prioritizing cybersecurity, businesses can protect their reputation, maintain customer trust, and ensure operational continuity,” said Videsha Proothveerajh, Director of Vodacom Business.

Emerging Threats: Ransomware and AI-Powered Cyberattacks

The report warns about the rise of AI-powered cyberattacks, which are making breaches more sophisticated and harder to detect. Ransomware remains particularly prevalent, especially in sectors like health, finance, and public services.

Despite these challenges, only 36% of South African businesses feel confident in their ability to prevent ransomware attacks without major operational disruptions.

Recommendations for Businesses

1. Invest in Cybersecurity Frameworks:
   A solid cybersecurity strategy can mitigate risks and safeguard critical assets.
2. Train Employees:
   Prioritizing employee training ensures that the workforce becomes the first line of defense against cyber threats.
3. Collaborate with Digital Solutions Providers:
   Turning to trusted providers like Vodacom Business can help businesses build robust security postures tailored to their needs.

Cybersecurity is not just an IT issue; it is a business imperative. As South African businesses face increasing threats, proactive measures are essential to protect operations, secure data, and sustain growth.

For more detailed strategies and insights, download the full Vodacom Business report here.