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AI-driven cyber threats raise alarm for Ethiopia’s financial sector 

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Artificial intelligence and generative AI are emerging as major cybersecurity risks for Ethiopia’s rapidly expanding financial-services sector, as banks, mobile-money providers and fintech companies process growing volumes of digital transactions.

The warning comes as Ethiopia advances its Digital Ethiopia 2030 agenda and financial institutions accelerate the shift toward digital banking, mobile payments and online services.

An Interpol assessment released this month found that artificial intelligence was linked to 55 percent of reported cybercrime cases across Africa in 2025. The report said AI-enabled tools are making cyberattacks faster, more scalable and harder for victims and institutions to detect.

Interpol’s African Cyberthreat Assessment Report 2026 also showed that cybercrime-related financial losses on the continent more than doubled, rising from USD 192 million to USD 484 million. The number of identified victims increased from 35,000 to 87,000, driven largely by AI-facilitated scams, credential theft and automated social-engineering campaigns.

Ethiopia accounted for 3.3 percent of recorded digital vulnerabilities identified in the report, placing it among the countries requiring stronger cybersecurity capacity as digitalisation expands.

The Commercial Bank of Ethiopia (CBE), the country’s largest lender, processed 3.48 billion digital transactions worth more than 22 trillion birr during the 2025/26 fiscal year. The volume accounted for about 70 percent of digital financial transactions by value nationwide.

The bank’s digital channels now handle millions of transactions each day, reflecting the rapid adoption of mobile banking, internet banking and digital-payment platforms. However, the expansion has also increased the potential exposure of financial institutions to fraud, phishing, data theft, account takeovers and AI-enabled cyberattacks.

Seyoum Damte, Vice President for Information Systems Security at CBE, said financial institutions with concentrated assets and large customer bases had become more attractive targets for cybercriminals.

“Just as bees need flowers to make honey, hackers and fraudsters target institutions where wealth is concentrated,” Seyoum said during the bank’s Cybersecurity Awareness Month programme.

He said AI-driven attacks, digital fraud and AI-agent security were among the principal emerging threats facing the country’s financial sector.

Interpol said cybercriminals are increasingly using AI and machine-learning tools to scan large numbers of systems for vulnerabilities. Attackers can exploit unpatched software, exposed virtual private networks, weak credentials and poorly configured online platforms, the report said.

Online scams remain the most widely reported form of cybercrime in Africa, with criminals using mobile-money platforms, social media and AI-powered impersonation tools to reach victims at scale.

CBE is responding by integrating an AI-supported zero-trust security approach into its information-systems architecture, according to bank officials.

The approach moves away from traditional perimeter-based cybersecurity systems, which assume that threats are primarily external. Zero-trust security instead requires continuous verification of users, devices and applications, on the assumption that risks can originate from inside or outside an organisation’s network.

CBE has previously said that it is strengthening its zero-trust model as digital channels account for an increasingly large share of banking activity.

Andrew Karanja, Founder and Director of CIO Africa, said ongoing cybersecurity monitoring reflected a growing commitment by institutions to build a secure and trusted digital ecosystem.

The issue will be a central focus of CBE’s third Cybersecurity Awareness Month Conference, scheduled for Oct. 29–30, 2026, at the bank’s headquarters in Addis Ababa. CIO Africa will serve as the event partner.

The conference is expected to bring together banks, microfinance institutions, fintech companies, technology providers, regulators and other stakeholders to discuss cyber resilience and emerging digital threats.

CBE and CIO Africa have also signed a memorandum of understanding to establish a broader platform connecting Ethiopia’s financial sector with regional and international cybersecurity experts.

As Ethiopia’s digital economy grows, sector leaders say cybersecurity will need to be treated not only as a technical issue but as a core requirement for sustaining trust in financial services. The challenge will be to ensure that innovation in AI and digital payments improves access and efficiency without creating new openings for fraud, data breaches and financial loss.

Why the best business leaders are not always the ones at the top

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For decades, business leadership has often been presented as a story about one person which is the chief executive with the vision, the manager with the answers, or the charismatic leader who inspires everyone else to follow. But the modern workplace is making that model harder to sustain. Businesses today operate in rapidly changing markets, work across cultures and borders, depend on technology, and bring together employees with very different experiences and expectations.

In this environment, perhaps the most effective leader is not the person who knows everything, but the person who knows how to bring together people who know different things.

This is where the idea of mosaic leadership becomes particularly interesting. A mosaic is made up of many individual pieces. Each piece is different, but together they create something meaningful. Business organisations work in much the same way. Employees bring different skills, experiences, cultures, professional backgrounds and ways of thinking. The challenge for managers is to connect these differences rather than allow them to become barriers.

Mosaic leadership moves away from the idea that leadership belongs exclusively to the person sitting at the top of the organisational chart. Instead, it sees leadership as something that can be shared across a team. Researchers argue that leadership does not always have to be concentrated in one individual and can instead be shared among several people. They also suggests that leadership can emerge through people working together and contributing different forms of expertise.

This matters because modern business problems are rarely simple. Consider the challenge of introducing artificial intelligence into a company. A senior manager may understand the business strategy, but that person may not understand the technology, the ethical concerns, the legal implications or how customers will respond. Bringing together people with expertise in technology, finance, law, marketing and customer experience can lead to a much stronger decision.

In other words, organisations do not always need one person with all the answers. They need a system that allows the right people to contribute the right answers at the right time.

There is also a strong argument for mosaic leadership when it comes to diversity. Businesses increasingly employ people from different cultural, professional and social backgrounds. That diversity can be a genuine competitive advantage because people who see the world differently are more likely to question assumptions and identify problems that others might overlook.

According to the researchers, effective management of diversity can support creativity, problem-solving and organisational flexibility. Shore et al. They go further by emphasising that inclusion is not simply about having different people in the room. People also need to feel that they belong while having their individual differences respected. That distinction is important. A company can have a diverse workforce and still have an old-fashioned leadership culture. Imagine a boardroom where people from different backgrounds are present, but only the chief executive and a small group of senior managers make the important decisions. On paper, the organisation may look diverse. In practice, very little has changed.

This is why mosaic leadership is about more than recruitment. It is about giving people a genuine opportunity to influence decisions. For that to happen, employees need to feel safe speaking up in which it is described as psychological safety which is the belief that people can express ideas, raise concerns and acknowledge mistakes without fear of embarrassment or punishment.

It sounds straightforward, but it can be difficult to achieve. Employees may have excellent ideas but remain silent because they do not want to challenge their manager. Junior employees may notice problems that senior executives do not see, but hierarchy can discourage them from speaking. A mosaic leadership culture attempts to break down these barriers.

However, there is a danger in presenting collective leadership as a perfect solution. Too many voices without clear direction can create confusion. Meetings can become endless discussions, decisions can be delayed and nobody may know who is ultimately responsible when something goes wrong.

Leadership cannot simply mean that everyone has an equal say on everything. Successful mosaic leadership therefore needs structure. Businesses still require people who can set priorities, make difficult decisions and accept responsibility. The difference is that those decisions should be informed by a broader range of knowledge and perspectives. Managers need to know when a decision requires collaboration, when specialist expertise should take priority and when executive authority is necessary.

There is also a deeper ethical question. Organisations increasingly talk about diversity and inclusion, but employees quickly notice when these commitments are only words. If certain groups are consistently overlooked for promotion, important projects or senior positions, then a company’s diversity strategy becomes little more than window dressing.

Some researchers showed how organisational structures can influence the opportunities available to different groups. This remains relevant today. A genuine mosaic leadership approach requires businesses to look carefully at who gets heard, who gets promoted, who receives opportunities and whose ideas receive credibility. For managers, the practical message is therefore quite simple: stop looking for the mythical “perfect leader”. Instead, ask a different question: What combination of people and capabilities does this organisation need to succeed?

That might mean creating cross-functional teams, encouraging mentoring, giving younger employees opportunities to lead projects, bringing different departments into strategic discussions or developing leaders who are good at listening as well as directing. It also means measuring whether employees actually feel that their contributions matter. This approach can change the way we think about leadership itself. The strongest organisation may not be the one with the most powerful chief executive or the most charismatic management team. It may be the one that knows how to connect the strengths of its people. Every organisation is already a kind of mosaic. It contains people with different experiences, personalities, expertise and ambitions. The real management challenge is deciding what to do with those differences.

Do we try to make everyone think alike, or do we create an environment where different pieces can come together to form something stronger? The answer may determine how businesses compete in the years ahead. The future of leadership is unlikely to be about finding one extraordinary person who can solve every problem. It is more likely to be about building organisations where leadership is shared, expertise is respected and different voices can contribute to a common purpose.

A mosaic works because every piece matters, even though no single piece tells the whole story. Business leadership may work in much the same way. The strongest organisations will be those that understand that their greatest strength is not found in one individual, but in how effectively they bring many different strengths together.

South Sudan, Sudan Resume Security Talks after Years-long Hiatus

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South Sudan and Sudan have resumed high-level political and security talks in Juba after a multi-year hiatus, bringing together senior defence and security officials to discuss border security and other issues between the neighbouring countries. A Sudanese delegation arrived in Juba on Sunday for meetings of the Joint Political and Security Mechanism (JPSM), a bilateral forum established under the 2012 Cooperation Agreement between the two countries. South Sudan’s Defence Minister, Lt. Gen. Chol Thon Balok, welcomed the delegation and said the talks were aimed at strengthening security cooperation between the two countries. … The JPSM was established following the 2012 Cooperation Agreement, which was reached after South Sudan’s independence to provide a framework for addressing political and security disputes between the two countries. The resumption of the mechanism comes as both countries face significant security and economic pressures, including the continuing war in Sudan that erupted in April 2023. Sudan’s conflict has also affected South Sudan, which hosts large numbers of Sudanese refugees and relies heavily on Sudan’s infrastructure to export its oil. (Radio Tamazuj)

Six Killed in Houthi Strikes on Red Sea Ship, Yemeni Government Says

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At least six people were killed on Tuesday when a cargo ship was hit in the Red Sea by missiles fired by the Houthi militia, Yemen’s government said, an escalation in the chaos that has engulfed shipping in the Middle East. The Yemeni Transport Ministry said in a statement that the vessel Tihamah was carrying food supplies and was hit while transiting the Bab al-Mandab Strait at the southern entrance to the Red Sea. The ministry added that four crew members — three Pakistanis and one Indonesian — were killed when a fire broke out on board. Later on Tuesday, the Yemeni Coast Guard said that two members of Yemen’s armed forces were also killed during a rescue mission, when another Houthi missile targeted the vessel. … The group has in recent weeks fired on Saudi-linked oil vessels in the Red Sea and said it was imposing a maritime blockade against the kingdom, after deadly clashes with the Saudi-backed government in Yemen. (The New York Times)