Page 37 - Risk Report 2024

IRMSA
37
RISK REPORT 2024/25

Longer-term response to address risk

sustainably

Risk drivers Response strategies Impact

Unattractive SA domestic and foreign Ring fence commercial zones for targeted investments; May appear
policies and investment conditions; minimise bureaucracy; ensure employment at minimum wage; complex but
capital flows exiting SA; high yields on open access to international work permits for targeted skills; key concepts
long dated RSA bonds that drive up guarantee dividend payments after provisional company tax are in place;
borrowing costs. payments; implement targeted mining/energy investment initiatives need
plans to address EU carbon emission ‘equivalence’ taxes. immediate
action to
impact

Unstable government structures Uncompromisingly protect the national interest in the next Short term:
during transition to coalition administration, drive active progress on national policy Medium
governments (national, provincial, and decisions and execution, follow through on recent progress Medium term:
local) or government of national unity. on action against perpetrators of fraud and corruption, drive High
parliamentary performance to deliver outputs through DPME.

Coalition impacts on the Rand and Maintain balanced perspective on impacts of decisions by Short term:
foreign relations, unsustainable social coalition government on the economy and social wellbeing in Medium
spending, increased debt vs GDP. the national interest. Medium term:
High

Inconsistent and unstable Strengthen relations with investor friendly governments to Short term:
international policies. promote the interests of the SA economy into the future, Medium
follow balanced and consistent foreign policy that supports Medium term:
economic growth and social development imperatives. High

Significant changes in external drivers Timeous engagements with political parties and civil groups Short term:
of foreign political influences. in targeted areas to ensure accurate information on which to Medium
base foreign policy decisions. Medium term:
High