Cybersecurity Challenges and Strategies in East African Financial Systems: A Beninese Perspective

Cybersecurity threats have become a critical concern for financial systems worldwide, including those in East Africa. Benin, as part of this region, faces unique challenges due to its geographical proximity and economic interconnectivity with other countries like Kenya, Uganda, and Tanzania. A mixed-methods approach was employed, combining qualitative interviews with quantitative data analysis on cybersecurity incidents reported by financial institutions over the past five years. The analysis revealed a high incidence rate of cyber-attacks (72%) targeting East African financial systems. Key themes identified include inadequate training for staff and insufficient use of encryption technologies in critical operations. This study underscores the urgent need for enhanced cybersecurity protocols, including regular security audits and more robust employee training programmes. Financial institutions are advised to implement stronger data protection measures and invest in advanced threat detection systems. Regulatory bodies should also consider mandating stricter compliance with international cybersecurity standards. Model estimation used θ̂=argminθ∑ᵢ(yᵢ,f_θ(xᵢ))+λθ₂², with performance evaluated using out-of-sample error.