Page 29 - IRMSA Risk Report 2023

“The contradictions between energy
policy, environmental policy, fiscal
policy, industrial policy and the lack
of a united national vision are critical
to get us there.”

JUSTICE MALALA

6.2 SOUTH AFRICA IS A STUDY IN COMPLEXITY

As the risk of the electricity-supply crisis in South Africa coalesces into a
status quo, international trends are exposing South Africa’s energy policy
to greater scrutiny. The result of this is economic risks regarding trade
constraints due to climate-change targets. Says Justice Malala, Political
Commentator:

“I think the world has really changed enormously due to the Russian invasion
of Ukraine.
I think that’s created a huge disruption in global energy markets. I think
it’s played no small part in allowing the US to pass the Inflation Reduction
Act, which, in my view, is likely to be regarded by posterity as one of the
key turning points in the battle against climate change. When the world’s
largest economy pivots decisively in favour of green energy, then you know
something’s going to happen.”

Malala refers to government policy in this regard, highlighting that it is
a driver of uncertainty, and that many state-owned enterprises are at the
receiving end of this.

PROFESSOR
BONANG MOHALE

Global tension and conflict continue to revolve
around the economy and supply chains. Professor
Bonang Mohale, President of Business Unity South
Africa, highlights that the supply of semiconductors,
industrial components, energy resources, and food
serves to expose the associated risks in South Africa.
South Africa remains tied to the global economy.
Over the past few months, these economic trends
are echoed locally in such effects as inflation, but
also in the case of global political alignment and its
repercussions.

IRMSA RISK REPORT 2023/24 29