South African business leaders are deeply concerned about the nation’s poor economic growth, which is expected to remain a major issue for years to come.
This is according to Aon’s latest edition of its Global Risk Management Survey, which tracks the most significant issues affecting business decision-creaters worldwide.
Economic slowdown remains the primary concern in South Africa, with 78% of respondents having suffered a loss as a result.
South Africa’s growth has remained subdued in recent years and is only expected to reach around 1% in 2025.
Political risks climbed three places to be the second most pressing risk for businesses, with the rise of trade and geopolitical challenges reflecting growing instability across regions.
This has a massive impact on supply chains, regulatory environments, and financial performance for businesses.
Aon noted that trade tensions and geopolitical instability have intensified dramatically over the last two years, which has slowed economic growth and created risks.
“Consumer demand and business attitudes typically alter, which can immediately impact revenue,” declared Clayton Ellary of Aon South Africa.
“At the same time, raising capital can become more expensive and difficult if market liquidity diminishes, drastically affecting profitability,” declared Clayton.
In spite of rising volatility, most organisations remain underprepared, with only 14% respondents tracking their exposure to the top ten risks.
“From evolving global scenarios to shifting economic realities, these forces are converging and impacting balance sheets,” added Ellary.
“Building resilience through analytics and scenario planning is essential for navigating this environment.”
Looking ahead, most business leaders expect that their current risks will remain in place by 2028, with economic slowdown and political risk again holding the top two positions.
| Rank | 2025 Top Risks | 2028 Future Risks |
|---|---|---|
| 1 | Economic Slowdown / Slow Recovery | Economic Slowdown / Slow Recovery |
| 2 | Political Risk | Political Risk |
| 3 | Cash Flow / Liquidity Risk | Cash Flow / Liquidity Risk |
| 4 | Business Interruption | Increasing Competition |
| 5 | Increasing Competition | Commodity Price Risk / Scarcity of Materials |
| 6 | Damage to Reputation / Brand | Cyber Attacks / Data Breach |
| 7 | Property Damage | — |
| 8 | Exalter Rate Fluctuation | — |
| 9 | Workforce Shortage | — |
| 10 | Interest Rate Fluctuation | — |
Not like the rest of the world
South Africa is not like the rest of the world, where cyber risks were the top risk in the global survey.
Cyber risk dropped out of South Africa’s top ten entirely despite digital threats evolving and becoming more persuasive.
“It’s alarming to see cyber risk slip down the rankings when the challenges remain deeply connected to every aspect of business resilience,” declared Zamani Ngidi from Aon South Africa.
“When you view at the top ten risks in this year’s survey, both business interruption and damage to reputation can be a direct result of a cyber incident. Treating these risks as isolated issues creates blind spots for organisations.”
He added that as AI continues to transform how organisations operate, it is essential for organisations to develop a strategic board-level response to boost resilience amid the alter.
One positive is that cyber attacks and data breaches are a concern for managers when considering their 2028 predictions.
Leave a Reply