Page 91 - Risk Report 2024

7. Energy 8. Logistics

Further uncertainty is caused by loadshedding which is planned Transport and logistics mafias, railway infrastructure sabotage,
for by contractors and included in project costs. The energy import and export corruption, hijackings, vehicle compliance/
crisis within South Africa has enabled diversification through roadworthy corruption, unofficial transport of illegal cargo for
the creation of opportunities within the renewable energy syndicates, and road safety result in project delays, confiscations
space. of cargo and vehicles, and increased project costs. Supply chain
is reliant on a well-functioning transport system (ports, rail)
and infrastructure (roads). The construction companies can
work with Government through PPP to maintain and improve
the transport infrastructure.

9. Food Security 10. Climate Change
A severe shortage of food will impact the sector through the More frequent extreme weather events and rising temperatures
impact on its workforce and the rest of society. Sector entities cause operational challenges, increasing project costs, project
can work with Government to reduce the risk of food security. stoppages, evacuations, restricted access to sites, and damages
Food security will also have a future impact on town and real to property and equipment. Mitigation strategies include
estate planning and the construction of low income and high- continuous weather monitoring, emergency preparedness,
density housing. prioritisation of sustainable material selection, regulatory
compliance, and building of resilient structures capable of
withstanding extreme conditions. The construction industry
needs to work to reduce emissions.

11. Technology 12. Skills

As the sector embraces technology and AI, cybersecurity risks Persistent challenges to attract and retain skilled resources
become more pronounced and can compromise data security, require of construction companies to invest in training,
lead to unauthorised disclosure, and result in financial losses upskilling, internships, and mentorship programs. By creating
and reputational damage. Robust cybersecurity measures a positive work environment and fostering a culture of
to safeguard sensitive information and maintain trust with learning and innovation, entities can improve productivity,
stakeholders are increasingly costly and not always effective. quality workmanship, and overall competitiveness. The sector
should prioritise collaborative partnerships with educational
institutions to develop and align existing curricula and
qualifications with the sector’s evolving requirements.