Africa’s drive to expand digitalization and boost competitiveness is colliding with mounting financial and operational risks, according to the Global Risk in Focus 2026 report published by the Internal Audit Foundation and coordinated with European Institutes of Internal Auditors.
The study warns that while digital growth promises to widen social inclusion, improve tax revenues and strengthen competitiveness, organizations across the continent face a “complex maze” of challenges including limited funding, fraud, extreme weather and rising cybersecurity threats.
Cybersecurity remains the top risk for African businesses, but digital disruption risk recorded the sharpest increase, climbing from sixth place last year to third in 2026. The report notes that chief audit executives (CAEs) are responding by integrating assurance work across risk areas and strengthening resilience.
Strategic decision‑making is also improving, aided by stronger corporate governance requirements such as the creation of audit committees and tighter, data‑rich reporting processes.
Financial and liquidity risks rank fourth in Africa compared with seventh globally. The report highlights that 43% of CAEs in Africa cite liquidity risks, versus 31% worldwide. Heavy reliance on foreign investment flows leaves many countries exposed when cash inflows are constrained.
While investments are directed toward infrastructure and digitalization, fraud, corruption and extreme weather continue to drain resources. Internal auditors are increasingly tasked with providing assurance for liquidity controls and validating the quality of financial data.
The proliferation of artificial intelligence and mobile financial technologies has amplified cybercrime risks. Low digital literacy in some countries makes cultural awareness of cybersecurity threats difficult to establish, while gaps in data security and privacy regulation compound vulnerabilities.
Despite these challenges, Africa boasts one of the world’s most dynamic fintech sectors. Governments are investing heavily to automate systems and documentation, while CAEs are adopting advanced auditing tools to automate controls and leverage AI.
The Global Risk in Focus 2026 report indicates that Africa’s digital transformation is advancing, but the continent must balance investment ambitions with financial discipline and stronger risk governance. Cybersecurity, digital disruption and liquidity risks will define the operating environment, requiring internal auditors to shift from traditional assurance to faster, advisory‑driven responses.
