Page 41 - Risk Report 2024

IRMSA
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RISK REPORT 2024/25

Longer-term response to address risk

sustainably

Risk drivers Response strategies Impact

Declining / negative foreign ‘Marshall Plan’ for new FDI with employment and tax Medium term:
investments flows, grey listing, incentives based on value-add factory and skills development. High
unattractive and restrictive regulatory
environment, increasing BEE demands,
concerns over the rule of law.

Fiscal room for policy interventions Reallocate State and local authority spending to infrastructure Medium term:
crowded out by social relief and State and value adding processes using third party project High
employment, ultimately leading to a management.
fiscal cliff and/or prescribed assets
rules with high inflation risk.

Policy uncertainty (property rights, Privatise clinics on condition of low cost/free for unemployed Medium term:
NHI), lack of fiscal discipline, currency models, accelerate low-cost benefit model for medical aids, High
weakness as early signal to loss of guarantee property rights.
confidence and economic instability.

Geopolitical fragmentation, Maximise trade and value add opportunities with regions Good
contradictory alignments between willing to develop SA, minimise purely extractive export perception,
key trade blocks, inconsistent relationships. financial
international policy application. benefits
uncertain

Loss of status as main gateway into Pursue new channels into Africa, partner with countries on Medium term:
Africa: increasing viability of other trade and investment policies on similar principles. High
countries for trade into Africa.