Page 63 - Risk Report 2024

IRMSA
63
RISK REPORT 2024/25

• Inefficiencies in water licensing (regulating usage, allocation, and distribution) together with non-compliance
by many water users cause pollution, depleted ground water levels, and affect food producers' access to water
to irrigate crops.
• Water availability is further marginalised by urbanisation, degraded ecosystems, soil erosion, deforestation,
destruction of wetlands, industrial/mining pollution, and poorly planned mine-rehabilitation. Due to this
(and climate change), rain-fed agriculture is no longer tenable in former core production areas (like the maize
triangle), and requires costly irrigation systems, especially among smallholder farmers.
• Poor pest and disease management (attempting to mitigate climate induced outbreaks) increasingly require
the use of harsher products that damage crops, livestock, and fisheries, lead to environmental contamination
and health risks, and will eventually cause extensive food production losses.
• Poor compliance to industrial sector codes of conduct and the lack of improved agricultural practices that will
foster sustainable farming practices.
• Inefficient governance and weak leadership hinder agricultural investment, threatening SA’s status as global
food producer. Lack of political structures and processes inhibit the creation of coherent policies to advance
food security. Poor land reform policy implementation focusing on land acquisition, but not on maintaining
productivity on the land, failing rural infrastructure, and the fact that land ownership for agricultural use is
not widely promoted or supported. Insufficient government subsidies and support to fund farmers and food
aid programs, especially in disadvantaged communities.
• Limited agricultural education programmes that limit adoption of improved farming techniques and
technologies.
• Geopolitical conflicts affecting food security globally.

Left unattended, food security risks will result in the following:
• Further disruption of food systems, limited availability, food inflation, and escalated/fluctuating food prices.
• Exacerbated poverty in areas dependent on agricultural activity.
• Unmanageable food inflation leading to households to prioritise food purchases over healthcare and education
spend.
• Malnutrition, stunted growth in children, exposure to infectious and diet related diseases, and increased
healthcare costs.
• Deteriorating social cohesion and stability, exacerbated social tensions, and conflicts over scarce resources.
• In context of regional and global security implications, SA could be shut out of the of main line of food basket
countries.

Risk Impact on Economic Sectors

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