Page 107 - Risk Report 2024

7. Energy 8. Logistics

Whilst energy related shortcomings have improved, impacts A significant portion of medication and healthcare related
such as reduced economic output, higher running costs equipment is imported and thus reliant on efficient transport
absorbed into product/service pricing, and reduced investor infrastructure. Inefficiencies at ports result in delays impacting
confidence remain. The risk of total grid failure appears unlikely supply and demand. Access to decent roads hampers adequate
compared to 18-24 months ago. Because of the criticality of healthcare access for those living in remote areas. A reliable
reliable power supply in the sector, healthcare facilities have railway network will improve patient and goods movement and
moved to sustainable energy sources, such as solar. reduce the number of road injuries and fatalities. Vandalism
and theft of railway infrastructure present complex challenges,
and innovative logistics solutions such as pharmacy networks
and other providers are being used to reach citizens.

9. Food Security 10. Climate Change
Food security challenges and insufficient access to balanced Direct climate related impacts on the sector are related to
diets impact the overall health of citizens. Healthier food options resources to effectively respond to extreme weather events.
are not as easily available as less healthy food (e.g. takeaways, Lack of adequate trauma units to respond to incidents such as
starches, sugar- and carb-heavy foods). Diet related lifestyle fires or floods as well as the inability to minimise the outbreak
diseases (such as diabetes and cardiovascular diseases) impact of related communicable diseases are major challenges.
the burden of disease – some medical schemes and insurers Service providers in areas prone to extreme weather events
attempt to influence behaviour to lessen this burden, but this must conduct resilience assessments and implement continuity
is difficult when unemployment and poverty limit access to controls. The move towards sustainability and ESG impacts the
healthier food choices. Malnutrition in childhood impairs brain sector, especially larger institutions – ESG related skillsets,
development, reducing long-term employment potential by governance, reporting and activities are required. Investors and
limiting cognitive abilities and skills. other stakeholders require concerted efforts to implement and
account for ESG initiatives, even though the impact may not be
as visible or direct yet.

11. Technology 12. Skills

AI presents significant opportunities, as the sector is heavily Highly specialised skillsets are required in the sector.
reliant on data and the processing thereof. AI may ultimately Inadequate local supply, attraction, and retention of healthcare
lead to improved access to healthcare, improved health providers are major challenges which are exacerbated by poor
outcomes and reduced cost to clients. AI and new technologies leadership and management of resources, as well as scarce skills
come with increased cyber risk, as the data held in the sector emigrating. A quality and adequately capacitated healthcare
is highly confidential and very valuable to criminals. Data system is essential on the journey to Universal Health Coverage,
privacy regulations (e.g. POPIA) compliance comes at additional which in turn will positively impact the economy, job creation
cost. Institutions must find innovative and sustainable ways and equality.
to balance effective controls with the cost of compliance.
Continuity in many instances has a ‘life-or-death’ impact on the
sector. Service disruptions from cyber-attacks, energy or water
failure amongst others, receive high focus (lessons learnt from
COVID-19 remain helpful).