Small and medium enterprises in South Africa are facing increasing exposure to crime and cyber threats, with many lacking the systems needed to withstand disruptions.
While larger corporates typically invest in layered physical security, cyber protection, monitoring systems and incident response planning, many SMEs remain underprepared. In a high-crime and digitally exposed environment, resilience is increasingly viewed as a business continuity issue rather than a discretionary spend.
Christopher Thornhill, CEO of Phangela Group, says SMEs often underestimate the operational impact of security incidents.
“South African businesses operate in one of the most complex risk environments globally, from violent crime and infrastructure instability to rapidly evolving cyber threats,” he says. “Yet many SMEs still treat security as a line item rather than operational infrastructure.”
South Africa continues to record high levels of violent crime, while cybercrime is rising, with businesses increasingly targeted by malware, ransomware and digital fraud. For smaller firms, the financial impact of an incident can be severe, affecting revenue, payroll and long-term viability.
Thornhill says cyber breaches often go undetected, increasing the potential damage. “The biggest cyber risk for SMEs is not being attacked, it is not knowing they have been compromised,” he says.
He adds that some businesses rely on isolated measures that do not necessarily ensure continuity. Insurance, backups or standalone security tools may not prevent operational disruption if not integrated into broader risk planning.
South Africa’s regulatory framework around cybercrime and artificial intelligence remains in development, while criminal networks are adopting more sophisticated methods, including AI-assisted attacks and coordinated fraud.
Thornhill argues that business resilience should be treated as a leadership issue rather than a facilities or IT function, particularly in owner-managed SMEs where operational decisions are centralised.
“The conversation must move beyond crime statistics,” he says. “This is about protecting income, protecting jobs and protecting continuity.”
The warning comes as SMEs continue to operate in an environment marked by infrastructure instability, digital exposure and persistent criminal activity, placing greater emphasis on preparedness and recovery capability.
