Neelam Rahim | neelam@radioislam.co.za

2-minute read
23 January 2024 | 15:07 CAT

Image: Twitter

The World Economic Forum (WEF) has highlighted an energy supply shortage as South Africa’s biggest risk in 2024. The WEF’s assessment of South Africa’s risks mirrors that of Allianz in its annual Risk Barometer, which compiles the views of over 3,000 risk management experts worldwide.

In its Global Risks Report for 2024, the WEF released the top five risks as identified by the Executive Opinion Survey for every country in the world.

For South Africa, these five risks are:

1. Energy supply shortage
2. Economic downturn
3. Unemployment
4. State fragility
5. Water-supply shortage

South Africa is not unique in facing energy supply shortages as it seems to be a global issue, even in seemingly energy-producing countries.

“Globally, the energy crisis is interestingly one of the biggest fallers but is something that appears on the radar of all countries around the world,” says Senior Risk Engineer at Allianz Commercial South Africa, Daniel Schroeder.

Economic downturn and unemployment are also common risks listed in the report.

However, South Africa is one of only 17 countries facing the risk of state fragility in 2024.

The Barometer identified infrastructure collapse as South African companies’ biggest risk in 2024.

South Africa is unique in facing the threat of infrastructure collapse, which is the first risk for the second year running.

According to Allianz, this highlights the severe impact of power outages and the failure of essential infrastructure, such as ports, railways, and roads, on the economy and businesses.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and Senior Risk Engineer at Allianz Commercial South Africa, Daniel Schroeder.