Page 43 - Risk Report 2024

IRMSA
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RISK REPORT 2024/25

• Despite a relatively high Human Development Index score of 0.71 out of 1 SA society is characterised by a high
Gini coefficient, diverse skills levels, and unequal wealth distributions, which do not support optimal human
capital development. Low productivity is driven by mental health issues (according to the SA Depression
and Anxiety Group, 1 in 4 citizens has depression, with employee absenteeism due to depression costing the
economy R20bn annually).
• Interconnected uncertainties (e.g. geopolitical tensions, water, load shedding, corruption, unemployment) are
compounded by post-election anxiety and a collective national psyche which will manifest in atypical crime
incidents, social polarisation, high suicide rates, gender-based violence, substance abuse, violent community
protests, and general discontentment.
• Insufficient response to address economic fundamentals and recognition of mental health issues as a critical
factor for a thriving society. Social service professionals (social workers, child and youth care workers, and
community development practitioners) are not strategically deployed in communities to offer psycho-social
support and facilitate the care and protection of marginalised and vulnerable groups in collaboration with
NPOs.
• The triple challenges of poverty, inequality, and unemployment remain the root cause of most of the country’s
social ills, and if not addressed through coherent policy decisions that promote economic prosperity, multi-
sectoral collaboration, and inclusion, will edge SA closer to a failed state.

Risk Impact on Economic Sectors

Agriculture, Forestry & Fisheries 12 Mining 9
Communication 13 Professional Services 15
Construction & Real Estate 11 Public Service / Government 5
Education 3 Sport & Recreation 16
Energy 4 Tourism & Hospitality 14
Healthcare 1 Retail, Trade & Commerce 6
Financial Services 7 Transport & Logistics 10
Manufacturing 8 Non-Profit / Civil Society / NGOs 2