Page 51 - 2022 IRMSA Risk Report

South Africa Top Risks

SECTION 3: South Africa Top Risks continued

The generational gap between political leaders and A concerted push for policy certainty will mean
the general citizenry is another compounding factor. greater attractiveness for investors which in turn
7 ˆÃÌ Ì ˆÃ ÀˆÃŽ ˆÃ `iˆV>ÌiÞ «œˆÃi`] >V̈Ûi VˆÌˆâi˜ÀÞ Üˆ LÀˆ˜} “œÀi ˆ˜Vœ“i vœÀ Ì i wÃVÕà >˜` }Ài>ÌiÀ
is one important balancing force and there are early opportunities for employment for the uneconomically
signs of an awakening citizenry in SA. The masses >V̈Ûi° ÀˆÃ̈i 6ˆœi˜] *Ü -ÌÀ>Ìi}ÞE iVœ˜œ“ˆÃÌ
are growing impatient as is noted by the ruling party says: “Foreign investors look to a number of macro
being pushed out of power in many cities and towns factors when considering FDI. These not only relate
ˆ˜ ÀiVi˜Ì œV> }œÛiÀ˜“i˜Ì iiV̈œ˜Ã] ܓï“ià to the economic outlook for a particular country but
in favour of political parties that are not viewed as also policy decisions taken by a government. Investors
supportive to the economically inactive. The middle also tend to be wary of any economic and political
V>Ãà ˆÃ ˆ˜VÀi>Ș}Þ ÃÌÀ>ˆ˜i` LÞ Ì i `ˆvwVÕÌ iVœ˜œ“ˆV ՘ViÀÌ>ˆ˜ÌÞ° ˜ -č] ÀiVi˜Ì «œˆÌˆV> >˜` iVœ˜œ“ˆV
circumstances and may also be hard-pressed into ՘ViÀÌ>ˆ˜ÌÞ] ˆ˜VÕ`ˆ˜} Ì i «iÀVi«Ìˆœ˜ œv VœÀÀի̈œ˜]
instigating unrest. have clouded investor sentiment.”
The unequal society results in breakdown of the rule ˜ Vœ˜VÕȜ˜] Ì iÀi ˆÃ ˜ii` vœÀ }Ài>ÌiÀ Vœœ«iÀ>̈œ˜
of law and makes it easier for citizens to engage between private and public sector to enable the
ˆ˜ ՘>ÜvՏ >VÌà ˆ`ˆ˜} Li ˆ˜` w} ̈˜} >˜ ՘ÕÃÌ economy to develop. The private sector must be given
ÃÞÃÌi“° ˜ >``ˆÌˆœ˜] Ì i ˆ˜Vœ˜ÃˆÃÌi˜VÞ ˆ˜ >««ˆV>̈œ˜ incentives to assist in developing the economically
œv Ì i >Ü >˜` Lˆ>Ãià ˆ˜ `iVˆÃˆœ˜Ã] LÞ }œÛiÀ˜“i˜Ì inactive members of the communities in which
>˜` œÀ}>˜Ã œv Ì i ÃÌ>Ìi] vii`à ˆ˜Ìœ Ì i «œˆÌˆV> they operate. Organs of government need to have
narrative to fuel the belief that arms of state are appropriate incentives to be able to attract individuals
Lˆ>Ãi` >˜` ˆ˜ivviV̈Ûi° / ˆÃ iÀœ`iÃ Ì i Vœ˜w`i˜Vi ÜˆÌ Ì i Àˆ} Ì ÃŽˆÃ >˜` iÝ«iÀˆi˜Vi° *œˆÌˆV> «>À̈iÃ
ˆ˜ Ì i VœÕÀÌÃ É Õ`ˆVˆ>ÀÞ ˆ“«>À̈>ˆÌÞ `ˆÃ>Lˆ˜} Ì iˆÀ also need to work together to better the country.
ability to serve the nation. There is a general mistrust and unwillingness to
Vœœ«iÀ>Ìi] Ü ˆV V>ÕÃià > V >˜}i ˆ˜ «œˆÌˆV> ÀՏiÀà ˆ«
Social transformation by changing the mode of ˆ˜ > Vœ““Õ˜ˆÌÞ] ÀiÃՏ̈˜} ˆ˜ Vœ“«iÌi V >˜}i ˆ˜
thinking is also required. Angry communities strategy and discontinuation of previous initiatives.
`iÃÌÀœÞˆ˜} ˆ˜vÀ>ÃÌÀÕVÌÕÀi ÃÕV >à Vˆ˜ˆVÃ] ÃV œœÃ] This is a cost which the country can no longer afford
libraries are a sad but common sight and leaves to bear.
communities in a worse position than before. In
>``ˆÌˆœ˜] Ì i i`ÕV>̈œ˜ ÃÞÃÌi“ ˜ii`à ̜ V >˜}i° Ì
is unjust to make students pass with 33% because
Ì iˆÀ Ài>`ˆ˜iÃà vœÀ Ì i œL œv Ì i vÕÌÕÀi ˆÃ ˆ˜ÃÕvwVˆi˜Ì°
č``ˆÌˆœ˜>Þ] Ì i µÕ>ˆwV>̈œ˜Ã Ü ˆV ÌiÀ̈>ÀÞ Vi˜ÌÀiÃ
offer need to cater for the new world where certain
œLà >Ài }iÌ̈˜} Ài`՘`>˜Ì] >˜` œÌ iÀà >Ài LiVœ“ˆ˜}
more prevalent to prevent the problem of growing
unemployment.
Local government is unable to provide basic
ÃiÀۈVià `Õi ̜ >}iˆ˜} ˆ˜vÀ>ÃÌÀÕVÌÕÀi] Ü ˆV V>˜
be avoided with better planning. The problem
ˆÃ vÕÀÌ iÀ iÝ>ViÀL>Ìi` LÞ VœÀÀÕ«Ì œvwVˆ>Ã Ü œ
Li˜iwÌ vÀœ“ «œœÀ ˆ˜vÀ>ÃÌÀÕVÌÕÀi LÞ À՘˜ˆ˜} «ÀˆÛ>Ìi
ventures which provide interim services for their
personal gain. Closer management and supervision
as well as appropriate and consistent consequent
management must be implemented to put an end
to the rot.
SA needs to revisit its desirable future. Factionalism
>˜` "6 ‡£™ >Ûi i` ̜ iÝÌÀi“i à œÀ̇ÌiÀ“ˆÃ“°
An appealing vision for the future of SA is desperately
˜ii`i`° ˜ >``ˆÌˆœ˜ ̜ LÕȘiÃÃ] >V>`i“ˆ> >Ãœ >Ã
> VÀˆÌˆV> Àœi ̜ «>Þ] ëiVˆwV>Þ vœÀ > ÃVˆi˜ÌˆwV
approach to policymaking. The other key player
ˆÃ Ì i “i`ˆ>] Ü ˆV “ÕÃÌ ˆ˜ÃˆÃÌ œ˜ Ì i vÀii`œ“Ã
enshrined in the constitution.

IRMSA RISK REPORT • SOUTH AFRICA RISKS • EIGHTH EDITION 49