Page 25 - IRMSA Risk Report 2023

5.6 SOUTH AFRICA’S ‘PERPETUAL HANGOVER’

The risks facing South Africa in the years ahead are significant and complex. They require a coordinated
effort across government, the private sector and civil society to address the underlying economic,
political, social and environmental challenges that are holding the country back.

Even more so than in 2022, the outcome of our analysis has South Africa slipping even deeper into the
scenario of ‘Perpetual Hangover’. The difference this time is that we do not see the momentum for the
country moving towards ‘Fake it until we make it’. That momentum has been lost; South Africa scored
more ‘own goals’. Also, we cannot help but ask the question: Is 2030 still realistic for the achievement
of the NDP objectives and priorities?

Adding to this, with the elections coming up in 2024, the possibility of changes in the political
administration will further exacerbate the time spent in ‘Perpetual Hangover’. If this trend continues,
the scenario of “Owning our Future” will most likely not be attainable in the lifetimes of the writers
and readers of this report.

5.7 SOUTH AFRICA’S CALL TO ACTION

By working together to achieve inclusive growth, as well as strengthen democratic institutions and
protect the environment, South Africa can build a more prosperous, sustainable and inclusive future for
all of its citizens. However, this will require a commitment to short-term action based on the principles
of long-term planning, as well as strategic and integrated thinking. It will require a willingness to take
bold action and to address accountability, performance and consequence management.

IT WILL REQUIRE EVERY CITIZEN TO LEAD FROM WHERE HE/SHE STANDS!

Synthesising the subject matter expert opinions and suggestions, views from the business
leaders interviewed, the high-level risk response strategies proposed below have the most
impact and value-add in addressing the threats and opportunities that, respectively, threaten
and support the building of a better future. In no particular order, these are the following:
LARGE SCALE
DISRUPTION OF
DIGITALLY ENABLED 1. Prioritise policies and investments that promote economic growth – those that stimulate job
SERVICES creation and economic support, particularly in sectors with high potential for job creation. These
include green industries, technology, and tourism.
2. Address the high levels of inequality by implementing policies that promote greater social and
economic equity. This includes progressive taxation; access to education and healthcare; and land
reform.
3. Invest in education and skills development to improve the quality of the workforce, promote
innovation, and increase productivity.
4. Grow entrepreneurship by supporting SMMEs creating an environment that encourages innovation;
provides access to finance and business support services; simplifies bureaucratic processes, which
in turn can help drive economic growth and job creation. The levels of support and enablement
here must be commensurate with what the average SMME in the country can tolerate. Creating
high barriers of entry into the economy based on ideological principles will not create enough
economic traction for SMMEs to survive.
5. Strengthen governance and fight corruption by promoting transparency, accountability, and
democratic institutions, while also strengthening the rule of law and ensuring that all citizens are
treated equally before the law. Rules alone will not prevent dishonesty from materialising. A strong
focus on ethical leadership (at all levels of the economy and across society) is needed as well as
better protection for whistleblowers.
6. Invest in public infrastructure, particularly in digitising basic public services; energy and water;
public transportation; and supporting economic growth.
7. Address climate change by promoting sustainable development, reducing greenhouse gas
emissions, and protecting biodiversity and natural resources.
8. Promote innovation, as well as research and development, to support the growth of high-tech
industries and increase the country’s competitiveness.
9. Address the challenge of crime and violence by investing in law enforcement, improving the
criminal justice system and addressing the root causes of crime.
10. Develop a comprehensive and integrated approach to risk management, including effective early-
warning systems and disaster preparedness, this to deliver a risk-intelligent and resilient private
and public sector.
11. Strengthen international partnerships and engage more effectively with the global community to
promote trade and investment, share best practices, and collaborate on key challenges including
climate change and poverty reduction. This will require a clear and sensible SA foreign policy.
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