By Phiwa Sikhondze
The Minister of Finance, Neal Rijkenberg, has called for heightened efforts to address cybersecurity challenges facing financial institutions across the Common Market for Eastern and Southern Africa (COMESA) region.
The Minister was speaking during the opening ceremony of the 2024 Symposium of the COMESA Committee of Governors of Central Banks held at the Central Bank of Eswatini (CBE) Complex at Ezulwini.
With the rise of fintech and digital banking, Rijkenberg stressed the importance of creating dynamic regulatory frameworks that not only protect against cyber-attacks but also promote innovation.
He emphasized the need for greater investment in capacity building and the sharing of best practices between central banks to ensure the region’s financial institutions are adequately equipped to handle emerging risks.
The symposium brought together central banking experts and financial regulators from the COMESA region, focused on how digital banking is reshaping the financial landscape.
Rijkenberg pointed out that while digital banking is critical for promoting financial inclusion, it is also increasingly vulnerable to cyber threats. As financial systems digitize, the region faces new challenges in safeguarding against sophisticated cyber-attacks and ensuring that both institutions and consumers are protected.
“Cyber threats are evolving at an alarming pace, and central banks and financial institutions are increasingly seen as prime targets. As financial systems become increasingly interconnected, the risks associated with cyber-attacks, data breaches, and technological failures become more pronounced. In the COMESA region, where many of our financial institutions are still strengthening their cyber defenses, we must take proactive measures to safeguard our systems and protect our citizens’ financial assets,” Rijkenberg said.
He also highlighted the importance of capacity building to enhance the skills and knowledge of financial professionals. This, he noted, would equip them with the tools needed to respond effectively to the rapidly evolving landscape of digital finance.
“We must invest in human capital, as the future of our financial systems will depend not only on technology but on the people who understand and manage it,” he said.
Echoing the Minister’s remarks, Dr. Phil Mnisi, Governor of the Central Bank of Eswatini (CBE), underscored the crucial role of cybersecurity in safeguarding financial institutions against emerging risks. In his address, Dr. Mnisi highlighted that as financial systems are increasingly digitized, the threats posed by cyber-attacks are becoming more complex.
“As financial regulators, we are entrusted with ensuring that our economies remain resilient, and the security of our financial infrastructure is paramount,” he said.
Dr. Mnisi also emphasized the need for stronger collaboration between financial institutions and regulators in addressing the growing challenges of cybersecurity.
He stressed that while technological advancements are necessary to foster financial inclusion, they must be complemented by robust security measures to protect both users and institutions.
“Cybersecurity is not just a technical issue; it is a critical pillar of financial stability. We must work together as a region to build frameworks that are both secure and scalable,” he added.
Both leaders called for enhanced regional cooperation on cybersecurity, acknowledging that no single country can tackle these risks alone. The symposium explored various strategies to mitigate cybersecurity risks, including leveraging artificial intelligence and blockchain technology to improve the security and integrity of transactions. However, they also acknowledged that alongside technological innovation, regulators must remain vigilant in preventing the rise of financial crimes such as fraud and money laundering.
“We must be proactive in our efforts to create secure and resilient financial systems,” Dr. Mnisi concluded. “By collaborating regionally and building capacity within our institutions, we can better protect our financial markets from emerging cyber threats.”