Failing infrastructure tops South African business concerns

The Daily Investor says businesses in other countries list cyber incidents such as ransomware attacks, data breaches and IT disruptions as the biggest worry for companies in 2024.

In South Africa infrastructure failure was seen as the biggest threat for both 2023 and 2024.

The publication cited this information from Allianz’s annual Risk Barometer, which compiles the views of more than 3,000 risk management experts across the world.

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

“The persistent threat of power outages and infrastructure failures poses significant challenges to businesses, disrupting supply chains and impacting the overall economy,” said CEO of Allianz Commercial South Africa Thusang Mahlangu. 

“The report underscores the urgent need for investment in infrastructure resilience and the development of contingency plans to mitigate the potential consequences of blackouts,” he added. 

The closely related risk of the energy crisis has climbed to the fifth position in South Africa, up from sixth place in 2023, indicating that little progress has been made in tackling the issue.