Africa’s risk landscape is evolving rapidly—not only because of new regulations, but because of new sources of risk that are reshaping how organisations operate, transact and govern themselves. Cross-border payments, digital finance, cyber dependency and climate exposure are no longer future considerations; they are present-day realities that regulators and institutions are struggling to fully absorb.
Four emerging risk domains are particularly important today: PAPSS, cybersecurity, fintech expansion and climate risk. Together, they reveal how Africa’s regulatory environment is shifting from traditional compliance toward broader operational resilience and systemic stability.
The Pan-African Payment and Settlement System (PAPSS) represents one of the most ambitious financial infrastructure projects on the continent. Designed to enable instant cross-border payments in local currencies, PAPSS supports the broader objectives of the African Continental Free Trade Area (AfCFTA).
While PAPSS reduces transaction costs and dependency on correspondent banking outside Africa, it also introduces new layers of risk. Settlement risk, liquidity mismatches, operational failures and cyber vulnerabilities now extend across borders and time zones. A disruption in one jurisdiction can quickly propagate to others.
Regulators are beginning to recognise that cross-border payment systems require coordinated supervision, shared incident response mechanisms and harmonised risk standards. For institutions, this means risk models must evolve beyond national boundaries. Managing cross-border exposure is no longer optional—it is foundational to operating in an integrated African market.
Cyber risk has become one of the fastest-growing supervisory priorities across Africa. As financial services, government platforms and critical infrastructure become increasingly digital, regulators are reframing cybersecurity as a systemic and prudential risk, not merely a technical concern.
In countries like South Africa, Nigeria and Kenya, supervisory authorities are expanding expectations around cyber governance, incident reporting and third-party risk management. Boards are now expected to demonstrate awareness of cyber risk, approve cyber strategies and oversee resilience planning.
This shift has profound implications. While a board member may not be personally responsible for coding failures, regulators increasingly hold boards accountable for governance failures—such as inadequate oversight, underinvestment in controls or poor incident escalation.
Cyber resilience is becoming a test of organisational maturity: not whether attacks occur, but how institutions prepare, respond and recover.
Africa’s fintech ecosystem is among the fastest-growing in the world. Mobile money, digital lenders, payment platforms, and embedded finance have expanded financial inclusion at unprecedented speed. Yet innovation has often outpaced risk governance frameworks.
Regulators are responding by tightening licensing regimes, strengthening oversight of outsourcing and technology providers, and increasing scrutiny of consumer protection practices. In Ghana, Kenya, Nigeria and South Africa, fintechs are increasingly subject to the same governance and risk expectations as traditional financial institutions.
This creates a new risk dynamic. Fintechs face pressure to professionalise risk management quickly, while incumbents must manage partnerships, APIs and third-party dependencies that expose them to indirect risk. Operational failures, data breaches or compliance lapses at a fintech partner can quickly become reputational and regulatory issues for larger institutions.
The regulatory message is clear: innovation is welcome, but risk ownership cannot be outsourced.
Climate risk is increasingly being integrated into Africa’s regulatory agenda, particularly as exposure to physical and transition risks becomes more evident. Floods, droughts, heat stress and energy transition policies affect credit risk, operational continuity and long-term financial stability.
Central banks and supervisors are beginning to align with international disclosure frameworks such as the ISSB standards, encouraging institutions to identify, assess and disclose climate-related risks.
For many organisations, climate risk remains poorly understood and weakly integrated into risk assessments. Yet regulators are signalling that climate exposure will increasingly influence stress testing, capital planning and governance reviews.
Climate risk is no longer treated as a reputational issue—it is becoming a financial and operational risk category.
While PAPSS, cybersecurity, fintech and climate risk may appear distinct, they share a common regulatory theme: interconnectedness. Risks no longer sit neatly within silos. Payment systems depend on technology. Fintech depends on third parties. Climate events disrupt operations and supply chains. Cyber incidents trigger liquidity, legal and reputational consequences.
Regulators across Africa are responding by shifting focus from static controls to resilience—the ability to absorb shocks, adapt and recover.
For organisations still managing risk through fragmented spreadsheets and manual processes, this presents a growing challenge. Emerging risks require integrated data, clear accountability and continuous monitoring—capabilities that manual systems struggle to provide.
Africa’s emerging risks are not future threats; they are active stress points in today’s regulatory environment. Risk leaders should prioritise:
The organisations that succeed will be those that move early—before these emerging risks become formal supervisory findings.
PAPSS, cybersecurity, fintech expansion and climate risk are reshaping Africa’s financial and operational landscape. Regulators are watching closely, refining expectations and raising the bar for governance and resilience.
For organisations willing to adapt, this moment offers an opportunity to build stronger, more future-proof risk systems. For those that delay, emerging risks may quickly become regulatory surprises.
Africa’s next risk cycle is already underway. The question is whether organisations are prepared to navigate it.
Schedule a meeting with our team to explore how PAPSS, cybersecurity, fintech growth, and climate risk are reshaping Africa’s regulatory and risk landscape — and what your organisation needs to do to stay resilient and compliant.👇