This is the view of Lionel Dartnall, SADC Country Manager of Check Point Software Technologies, a pioneer and global leader of cyber security solutions.

“Digital transformation is reshaping the manufacturing landscape, bringing both new opportunities and significant risks. As manufacturing operations increasingly rely on interconnected systems, cybersecurity has become a critical concern,” he says. 

From ransomware to supply chain vulnerabilities, African manufacturers face cyber threats that not only jeopardise their financial stability but also disrupt global operations.

Fortunately, by adopting a multi-layered approach to cybersecurity manufacturers can not only defend against attacks but also improve operational efficiency. 

Impact of manufacturing sector in Africa

Manufacturing plays a huge role in many African economies, contributing significantly to GDP, employment, and industrial development. However, as the sector adopts more digital technologies, the risk of cyberattacks is escalating, impacting not just African manufacturers themselves but the broader economy.

According to the World Economic Forum, manufacturing accounts for about 10% of Africa’s total GDP on average. In 2023, Africa’s manufacturing output was valued at $500 billion, with key sectors such as food processing, textiles, and consumer electronics experiencing significant growth. 

Manufacturing in South Africa alone contributes close to 13% to the GDP, about $29 billion, according to PWC’s  2024 Manufacturing Analysis. Ethiopia, Kenya, and Morocco have also seen growth in their manufacturing sectors, with notable advancements in textiles, automotive, and consumer goods production. 

1.     Job Creation

The manufacturing sector is also a major source of employment across the continent. According to the 2024 South African Reserve Bank Occasional Bulletin of Economic Notes,  it accounts for about 12% of formal sector jobs in the country, with Nigeria also relying on manufacturing for significant employment, particularly in agro-processing and cement industries. Across the continent, manufacturing provides critical income and skill development opportunities, especially in industrial hubs like Lagos, Nairobi, and Johannesburg.

2.     Investment and Infrastructure

In response to increasing demand, several African nations are investing heavily in manufacturing infrastructure. New industrial parks and special economic zones (SEZs) in countries like Ethiopia, Egypt, and Rwanda are attracting foreign direct investment (FDI) and driving sector growth. As a result, Africa is positioning itself as an increasingly attractive destination for global manufacturing investments.

Rising Cybersecurity Threats to the Manufacturing Sector

As the sector has grown in significance, so the cybersecurity threat landscape has become more complex and perilous. Check Point Software’s  The State of Global Cyber Security 2025 Report revealed a 44% increase in global cyber attacks in 2024, signaling that threats are rapidly evolving, with the manufacturing sector being a prime target. 

In the third quarter of 2024 alone, manufacturing globally saw a 75% increase in cyber-attacks compared to the previous year, with organisations experiencing an average of 1,876 attacks each.  This is  a 15% rise from the previous quarter.

Cybersecurity Risks in Africa’s Manufacturing Sector

Despite its importance, African manufacturing sector faces significant cybersecurity challenges. The increasing digitalisation of manufacturing processes, combined with the integration of IT and OT, has exponentially raised the risk of cyberattacks. This is becoming a systemic issue with the potential to destabilise entire economies.

“Manufacturers face unique vulnerabilities due to their reliance on outdated legacy systems that are hard to patch and the growing integration of operational technology (OT) and information technology (IT),” Dartnall says.

• Internet of Things

Additionally, the increasing use of Internet of Things (IoT) devices in Africa’s manufacturing facilities creates further vulnerabilities, enabling attackers to exploit weaknesses in factory networks.

• Ransomware

Manufacturers are particularly vulnerable to ransomware because attackers know that shutting down production can result in severe financial damage. These threats are no longer hypothetical: According to the Waterfall Security Solutions’ 2024 Threat Report , in 2023, 68 cyber-attacks in Africa’s manufacturing sector led to substantial operational disruptions, causing  physical damage across over 500 manufacturing sites, leading to production shutdowns and logistical delays. 

• Supply Chain Risks

Africa’s manufacturing supply chains are often intricate, involving numerous suppliers, contractors, and logistics providers, all of which can serve as entry points for cybercriminals. The rise of cloud services in manufacturing has also introduced risks related to misconfigured cloud settings, data breaches, and attacks targeting third-party services.

Economic Impact of Cybersecurity Breaches

The economic consequences of cybersecurity breaches in Africa’s manufacturing sector are profound. Cyberattacks not only lead to financial losses but also damage reputations, erode investor confidence, and disrupt national economies.

1.     Losses and Operational Disruptions

Cyberattacks that disrupt operations lead to substantial financial losses, including the cost of system recovery, production downtime, and data restoration. In 2023, the cost of cybercrime in Africa was estimated at $4.1 billion annually, with a significant portion attributed to manufacturing disruptions.

2.     Impact on GDP and Job Losses

In countries like South Africa, where manufacturing is a key driver of the economy, cyberattacks can significantly impact GDP. In 2024, cybercrime was estimated to cost South Africa nearly 1% of its GDP, according to Check Point’s 2024 African Perspectives on Cybersecurity Report. 

Furthermore, production shutdowns resulting from cyberattacks can lead to widespread job losses, especially in sectors like manufacturing where smooth operations are critical for employment.

Enhancing Cybersecurity While Improving Operational Efficiency

To mitigate these risks, African manufacturers must adopt a multi-layered cybersecurity approach that not only defends against attacks but also improves operational efficiency. One such solution is Secure Access Service Edge (SASE), which integrates networking and security into a unified system, helping manufacturers safeguard their networks while boosting productivity and minimizing downtime.

• Use Case 1: Operational Transformation

Take the case, for example, of an African manufacturer facing increased competition and pressure to reduce operational costs. After an internal audit, the company identified significant inefficiencies, including machine idle time, poor connectivity, and excessive IT tickets related to connectivity and security issues.

By implementing a SASE solution such as Check Point’s Harmony SASE, the manufacturer was able to address these challenges. The improved network performance resulted in faster access to cloud resources, eliminating bottlenecks and reducing downtime.

As a result, it saw a 23% improvement in on-time delivery rates and reduced machine idle time below industry benchmarks. In addition to enhanced security, the company saved money by retiring costly MPLS systems that were previously used to connect production facilities and warehouses.

• Use Case 2: Securing a Complex Supply Chain

Another example comes from African manufacturers with a highly complex supply chain, spanning multiple suppliers, remote employees, and third-party contractors. With so many entry points, the security team was concerned about breaches, particularly of the company’s research and development systems. 

After adopting a SASE solution such as Check Point Harmony SASE, the company strengthened its security posture by implementing a Zero Trust model that restricted supplier access to only necessary areas of the network. 

This approach segmented the network and reduced lateral movement, protecting sensitive systems. The results were significant: the company saw a 30% reduction in security alerts and successfully thwarted several unauthorised access attempts. Moreover, by improving security across the supply chain, the company enhanced its overall risk management.

The frequency and sophistication of cyber-attacks on the manufacturing sector are escalating, underscoring the urgent need for comprehensive cybersecurity solutions. 

“Manufacturers must view cyber security as a strategic tool that enhances both security and operational efficiency. By embracing technologies like SASE, manufacturers can protect against cyber threats while driving productivity, reducing costs, and gaining a competitive edge in the global marketplace,” Dartnall concludes.

In today’s digital manufacturing era, strong cybersecurity is not just an option—it is essential for long-term success.

The post How African Manufacturers Can Turn Security into a Competitive Advantage appeared first on Tech | Business | Economy.

MAN’s Director General, Segun Ajaji Kadir, criticized the move, stating that it would have negative consequences for the country’s economy, particularly in light of the rising inflation rate.

MAN’s main concern is that the CBN’s approach to addressing inflation through interest rate hikes will exacerbate the challenges faced by the manufacturing sector.

Kadir argues that higher interest rates will discourage investment in the sector, leading to increased production costs and higher commodity prices. This, in turn, could result in a surplus of unsold manufactured products, further compounding the problems faced by the sector.

The association believes that the interest rate hike will exacerbate the impending recession in the manufacturing sector and have far-reaching negative impacts.

What Manufacturers are Saying

It asserts that the government and the CBN should explore alternative measures beyond the conventional monetary policy framework to address inflationary pressures and reposition the economy.

MAN’s critique raises several important points for consideration. First, it highlights the need for a holistic approach to tackling inflation and supporting economic growth. While interest rate adjustments can be a tool for controlling inflation, they can also have adverse effects on investment and production costs.

Therefore, the CBN should consider complementary strategies to address inflation, such as fiscal policies or supply-side interventions, to mitigate the negative impacts on the manufacturing sector.

Second, MAN’s concerns about the impact of the interest rate hike on investment are valid. Higher borrowing costs can discourage businesses from seeking financing for expansion, innovation, and job creation. This, in turn, could hinder the sector’s ability to contribute to economic growth and employment generation.

The government and the CBN should assess the overall investment climate and explore ways to incentivize private sector investment in the manufacturing sector, such as targeted tax incentives or loan guarantee programs.

Third, MAN’s call for unconventional measures to address inflationary pressures is worth considering. While interest rate adjustments are a common tool in monetary policy, they may not always be the most effective or appropriate approach in every circumstance.

Policymakers should explore a mix of demand-side and supply-side policies to address inflation, including targeted support for sectors facing cost pressures and structural challenges.

In Conclusion: criticism of the CBN’s decision to increase the interest rate reflects the concerns of the manufacturing sector regarding the potential negative consequences on investment, production costs, and the overall economy.

The government and the CBN should take these concerns into account and consider a comprehensive approach that combines monetary, fiscal, and structural policies to address inflation and support the growth of the manufacturing sector.

By doing so, they can mitigate the adverse effects of inflation while promoting a conducive environment for investment and sustainable economic development.

The post Frustration Mounts as Interest Rates Skyrocket for Nigerian Manufacturers appeared first on Tech | Business | Economy.

The manufacturers’ request for the sector to receive the most support possible by enabling operators to access foreign exchange through a special window to be established by the Central Bank of Nigeria was being taken into consideration by the Federal Government.

Manufacturers expressed confidence that, if used, the effort will halt the practice of operators obtaining foreign exchange on the black market. The manufacturers said that other nations, such as South Africa, previously supported these measures as a way to promote industrial activity.

The Minister of Trade and Investment, Niyi Adebayo, said his ministry would initiate steps towards helping exporting manufacturers alleviate the impact of the current forex crisis.

Adebayo said: “MANEG is a formidable group. Write to me. I will see how I can use that as a reference to engaging the CBN. As you know, the CBN is a monster of its own.

“I like the idea that you came up with, having a different window for manufacturers. The president just set up an economic team, and we have been meeting. Write to me, and we will see what we can do.”

The post CBN to Consider Different Exchange Windows for Manufacturers appeared first on Tech | Business | Economy.