Jeremy’s weekly wrap: What business can’t ignore this year

This week on Moneyweb@Midday, South Africa’s economic and structural challenges were in sharp focus as experts discussed risks building beneath the headlines – from failing water systems to global trade shifts and investor recalibration at Davos.

Risk specialist Volker von Widdern, speaking on the growing strain in South Africa’s water network, warned that the country’s infrastructure is under simultaneous stress from drought, flooding and decaying treatment plants, with little visibility before sudden failure.

He described a system where bulk supplies can abruptly cut off or require major repairs without advance warning, a situation he attributed to decades of underinvestment, poor maintenance, and reactive planning rather than proactive risk management.

Von Widdern stressed that climate change exacerbates these fragilities, with silting dams and overwhelmed stormwater systems compounding shortages in Johannesburg and flood risks in Limpopo, pointing to a wider need for strategic investment and resilience planning.

You can also listen to this podcast on iono.fm here.

On the global stage, Luz Maria de la Mora of the United Nations Trade and Development, told me how slowing global trade is reshaping Africa’s economic landscape. She noted that subdued growth, dependence on commodity exports and high financing costs make African economies vulnerable to external shocks, yet highlighted how South-South trade and the African Continental Free Trade Area (AfCFTA) offer structural pathways to resilience.

By reducing tariffs, harmonising regulations and boosting connectivity, AfCFTA could deepen intra-African commerce and help economies adapt to a fragmented trading system. De la Mora also pointed to emerging opportunities in services and digital trade, emphasising that skills development and infrastructure investment will be key to unlocking Africa’s integration potential.

You can also listen to this podcast on iono.fm here.

Global investor sentiment also took centre stage with Chris Holdsworth, Chief Investment Strategist at Investec, reporting from the World Economic Forum in Davos.

Holdsworth described how geopolitical tensions, from US policy shifts to AI’s rapid disruption, are driving investors to rethink risk models and asset allocation. He noted growing interest in African markets and South Africa’s reform momentum, particularly in energy and ports, though scepticism remains about translating interest into capital flows.

Holdsworth argued that consistent implementation of reforms over the next six to 12 months could bolster confidence in South Africa’s growth story, even as geopolitical uncertainty reshapes global portfolio strategies.

You can also listen to this podcast on iono.fm here.

Back on the domestic regulatory front, Nicolette van Vuuren, partner at Webber Wentzel, explained tougher enforcement now facing employers who fail to pay pension fund contributions. New labour and financial sector enforcement powers mean both labour inspectors and the Financial Sector Conduct Authority can act against late or unpaid contributions, closing previous compliance gaps and exposing employers to administrative and criminal sanctions. This tightening reflects broader regulatory efforts to protect worker benefits and shore up retirement system integrity.

You can also listen to this podcast on iono.fm here.

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