Page 46 - Risk Report 2024

IRMSA
46 RISK REPORT 2024/25

8.5 Rule of Law

SA has been plagued by corrupt activities (most notably tender corruption targeting public
sector capital expenditure) that eventually led to the Commission of Inquiry into State
Capture finalising its work in 2022.

The country also faces persistent crime in general (including all types of illicit activities). This situation threatens
socio-economic stability and forecasts a future characterised by deteriorating service delivery, economic
stagnation, declining trust in Government, strained international relations, escalating social unrest and the
ultimate unravelling of society. The potential for increased internal discord and diminished global standing could
affect SA's development trajectory detrimentally. The risk is deeply embedded within the socio-political and
socio-economic fabric of SA, influenced by the following:
• The lack of robust institutional frameworks and effective governance allows for corrupt practices to flourish
undeterred.
• Frequent leadership changes and ongoing political conflict detract from effective law enforcement, enabling
the proliferation of crime.
• High unemployment and economic disparities which may push individuals and groups towards illicit means
to survive.

The consequences of the risk could be devastating:
• Crime erodes foreign investor confidence and hampers economic growth. Illicit activities deplete national
resources and reduce fiscal capacity for development, while severely affecting FDI for growth related initiatives.
Crime increases production cost, which affects profit margins and makes SA uncompetitive globally.
• Crime leads to social distrust in institutions, diminishing public confidence in justice and governance, which
is crucial for social cohesion and national progress. Additionally, this distrust can cause a lack of public
cooperation in Government initiatives and difficulty in implementing policies, further affecting national
development and reform efforts.

GEMMALYN ALCOBER CYNTHIA MOTAUNG CYNTHIA STIMPEL WALTER EHRLICH ADV THOKOZANI MVELASE
Senior Information CRM Prac Executive Director CRM Prof CEO
Security Officer – GRC Independent Risk Whistleblower House Director COMRiC
Easy Equities Professional Retlaw Fox