Page 20 - IRMSA Risk Report 2023

5.2 SOUTH AFRICA TOP RISK PROFILE LINKED TO GOVERNMENT
PRIORITIES 2023

NATIONAL GRID
SYSTEMIC FAILURE OF
PUBLIC INFRASTRUCTURE 1. 2. FAILURE
MAKING RESTORE ENERGY
GOVERNMENT WORK SECURITY

POLITICAL
INSTABILITY
6. PROLIFERATION
BUILDING OF ILLICIT
BETTER ECONOMIC
ACTIVITY
INCREASING LIVES
UNEMPLOYMENT
AND LIVELIHOOD 3.
CRISIS FIGHTING
CORRUPTION

COLLAPSE OF ECONOMIC
SOCIAL SECURITY 5. COLLAPSE
SYSTEMS MAKING
COMMUNITIES
SAFER
4.
GROWING ECONOMY
AND JOBS LARGE SCALE DISRUPTION
IMPACT OF CLIMATE CHANGE OF DIGITALLY ENABLED
AND CLIMATE ACTION FAILURE SERVICES

Graphic 1: Top risks linked to Government Priorities 2023.

One of the most pressing risks facing South Africa is an economic collapse. In recent years, the country
has experienced low economic growth, ever higher unemployment, increasing poverty, and inequality,
exacerbating social tensions and divisions. As the country looks to 2030, it will need to focus on policies
and investments that create jobs, promote entrepreneurship and support small, medium, and micro-
enterprises (SMMEs). The risk of not successfully enabling the SMME-sector is the proliferation of informal
and unregulated economic activity. This will require a coordinated effort across government, the private
sector and civil society, to speedily enable inclusive growth and development.

Other major challenges facing South Africa include political instability and governance failures. The country
has experienced a number of high-profile corruption scandals, political infighting and policy uncertainty in
recent years, leading to a loss of confidence in government, Chapter Nine institutions and the public and
private sectors. The reality of an unplanned, national coalition government (if it materialises), following
immediately after an era fraught with corruption (most of which has received significant media coverage) is
probably the single most important key risk indicator for the risk of South Africa degenerating into a Mafia
State.

20 IRMSA RISK REPORT 2023/24