Page 65 - Risk Report 2024

IRMSA
65
RISK REPORT 2024/25

Longer-term response to address risk

sustainably

Risk drivers Response strategies Impact

Climate change, water shortages, Climate impact modelling, soil preservation plans, micro Medium term:
flooding, insufficient arable land, farm irrigation, closed water storage, appropriate mutual risk Good
floods. financing models.

Natural disasters (severe floods, Multi-sectoral investment pools and planning for low cost, Short term:
droughts, heatwaves, sandstorms). high impact disaster relief, ready-to-go relief packages incl. High
soil repair, parametric and standard risk transfer mutuals
(including recovery of farmers and communities).

Economic, trade and market volatility, Multi co-op mutual risk equalisation instruments, medium Medium term:
financial instability, poor viability for term market price hedging. High
agri loan finance.

Political instability, crime in farming Localise security/policing to communities, funding from Short-term:
areas, farm abandonment. allocations off rates bases; fractional farm ownership for High
empowerment. Medium-term:
High

Energy crisis causes increased cost of Medium term plans to move off grid for lower costs and better Medium term:
irrigation and storage. reliability: subsidised solar for farmers, battery storage for High
cold rooms.

Environmental degradation. Soil and water testing for early warnings on changes to Short-term:
composition. High

Indiscriminate pesticide use. Soil and water testing with tracing of pollution/ chemical Short-term:
sources. High

Population growth. Dietary education plans, concentrated protein/vitamin Short-term:
supplements, home production of resilient vegetables, High
subsistence farming. Medium-term:
High

Sources:
• Overcoming Bureaucratic Resistance: An Analysis of Barriers to Climate Change Adaptation in South Africa. 2023. Nom-
fundo Patricia Sibiya, Dillip Kumar Das, Coleen Vogel, Sonwabo Perez Mazinyo, Leocadia Zhou, Mukalazi Ahmed Kalumba,
Mikateko Sithole, Richard Kwame Adom, Mulala Danny Simatele. https://doi.org/10.3390/cli11070145