Page 59 - Risk Report 2024

IRMSA
59
RISK REPORT 2024/25

• Failing SOEs (e.g. Transnet, SAA, SANRAL) resulted in inadequate investment in and maintenance of
transport infrastructure, compelling the State to divert funding from other needs, with low levels of
return on such investments.
• Energy supply shortages leading to interruption in transport, logistics, and alternative private supply
chain activities.
• Climate change induced extreme weather events and lack of investment in climate resilient infrastructure
leading to a continuous decline in logistics infrastructure that remain available to facilitate economic
activity.

Consequences of this risk include the following:
• Loss of revenue, rerouting of cargo ships to other ports, higher insurance premiums, and increased cost of
doing business in SA and Africa (for international entities still accessing Africa through SA).
• Reduced local and foreign investment in development projects that will support a growing economy in SA.
• Increased diversion of resources to deal with the consequences of a failing transport and logistics system,
e.g. emergency resources to respond to road accidents, loss of life, and damages to infrastructure and
goods, reduced economic activity and resultant lower economic growth.

Risk Impact on Economic Sectors

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