Page 21 - IRMSA Risk Report 2023

This has undermined the country’s democratic institutions and eroded public and international trust, making
it more difficult to address other key challenges such as attracting vital foreign investment, poverty reduction
and environmental sustainability.

Addressing political instability and these governance challenges will require a concerted effort to promote
transparency, accountability and democratic institutions, while also strengthening the rule of law and
ensuring that all citizens benefits from the principles of distributive, procedural, and restorative justice.

In addition to these economic and political risks, South Africa also faces significant social and environmental
challenges. Due to inequality, poverty, unemployment and failed service delivery, social tensions are
exacerbated and the risk of social unrest has increased. Leaders at all levels and in all spheres of the
economy have to take cognisance of the tremendous pressures that individuals are under and the impact
of this pressure on the personal and collective resilience of South Africans individually and South Africa as
a country.

Addressing these challenges will require a holistic approach that focuses on education and skills development,
as well as healthcare, and social safety nets, beyond social government grants and corporate social
investment programmes. The fundamental fabric of physically and mentally healthy and skilled individuals
who make up a resilient and prosperous citizenry cannot be taken for granted anymore – this irreplaceable
building block of a future South Africa is beyond a doubt at a very fragile point in history. It will also require
the investment in and speedy, sustainable execution of public infrastructure improvements, such as housing,
water, sanitation and public transportation. Also, to improve living conditions, health, and skills levels, and
support economic growth.

At the same time, South Africa must also confront the environmental risks associated with climate change
and biodiversity loss. The country is particularly vulnerable to the impacts of climate change, including
increased droughts, flooding and a rise in temperature, which will have significant economic, social and
environmental consequences.

Addressing these environmental risks will require a coordinated effort to promote sustainable development
and reduce greenhouse gas emissions, as well as to protect biodiversity and natural resources.

This will require an investment in renewable energy and sustainable agriculture, along with ecosystem
restoration as part of a consciously managed Just Economic Transition to a lower carbon economy. Special
focus will need to be placed on policies and incentives that promote green growth and sustainable
development, while focusing on the principles of distributive, procedural and restorative justice during the
roll-phases.

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