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Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies globally in 2024, according to the Allianz Risk Barometer. The closely interlinked peril of Business interruption ranks second. Natural catastrophes (up from #6 to #3 year-on-year), Fire, explosion (up from #9 to #6), and Political risks and violence (up from #10 to #8) are the biggest risers in the latest compilation of the top global business risks, based on the insights of more than 3,000 risk management professionals.

Critical infrastructure blackouts top South Africa business risk for 2024

Critical infrastructure blackouts have emerged as the number one risk for businesses in South Africa for the second consecutive year highlighting the severe impact of power outages and the failure of essential infrastructure such as ports, railways, roads, and more on the economy and businesses. The closely interlinked peril of energy crisis has climbed to the fifth position, up from sixth place in 2023. Cyber incidents and business interruption continue to hold the second and third spots, respectively.

"South Africa's business community must remain vigilant in the face of critical infrastructure blackouts. The persistent threat of power outages and infrastructure failures poses significant challenges to businesses, disrupting supply chains, and impacting the overall economy. The report underscores the urgent need for investment in infrastructure resilience and the development of contingency plans to mitigate the potential consequences of blackouts. By proactively addressing these risks, businesses can enhance their ability to withstand disruptions and ensure continuity of operations,” said Thusang Mahlangu, CEO of Allianz Commercial South Africa.

Allianz Commercial CEO Petros Papanikolaou comments on the findings: “The top risks and major risers in this year’s Allianz Risk Barometer reflect the big issues facing companies around the world right now – digitalization, climate change and an uncertain geopolitical environment. Many of these risks are already hitting home, with extreme weather, ransomware attacks and regional conflicts expected to test the resilience of supply chains and business models further in 2024. Brokers and customers of insurance companies should be aware and adjust their insurance covers accordingly.”

Large corporates, mid-size, and smaller businesses are united by the same risk concerns – they are all mostly worried about cyber, business interruption and natural catastrophes. However, the resilience gap between large and smaller companies is widening, as risk awareness among larger organizations has grown since the pandemic with a notable drive to upgrade resilience, the report notes. Conversely, smaller businesses often lack the time and resources to identify and effectively prepare for a wider range of risk scenarios and, as a result, take longer to get the business back up and running after an unexpected incident.

Trends driving cyber activity in 2024

Cyber incidents (36% of overall responses) rank as the most important risk globally for the third year in a row – for the first time by a clear margin (5% points). Cyber incidents retains #2 position in South Africa.It is the top peril in 17 countries and regions, including Nigeria, Uganda, Kenya, Mauritius, Africa and the Middle East, Germany, India, Japan, the UK, and the USA. A data breach is seen as the most concerning cyber threat for Allianz Risk Barometer respondents (59%)followed by attacks on critical infrastructure and physical assets (53%). The recent increase in ransomware attacks – 2023 saw a worrying resurgence in activity, with insurance claims activity up by more than 50% compared with 2022 – ranks third (53%).

“Cyber criminals are exploring ways to use new technologies such as generative artificial intelligence (AI) to automate and accelerate attacks, creating more effective malware and phishing. The growing number of incidents caused by poor cyber security, in mobile devices in particular, a shortage of millions of cyber security professionals, and the threat facing smaller companies because of their reliance on IT outsourcing are also expected to drive cyber activity in 2024, “explains Scott Sayce, Global Head of Cyber, Allianz Commercial.

Business interruption and natural catastrophes

Despite an easing of post-pandemic supply chain disruption in 2023, Business interruption (31%) retains its position as the second biggest threat in the 2024 survey. Business interruption retains #3 position in South Africa and ranks in the top five risks in Ghana, Kenya, Senegal, Uganda and Africa and the Middle East. This result reflects the interconnectedness in an increasingly volatile global business environment, as well as a strong reliance on supply chains for critical products or services. Improving business continuity management, identifying supply chain bottlenecks, and developing alternative suppliers continue to be key risk management priorities for companies in 2024.

Natural catastrophes (26%) is one of the biggest movers at #3, up three positions. 2023 was a record-breaking year on several fronts. It was the hottest year since records began, while insured losses exceeded US$100bn for the fourth consecutive year, driven by the highest ever damage bill of US$60bn from severe thunderstorms. In South Africa, the impact of Natural catastrophes was particularly severe, propelling it from seventh to fourth place in the global ranking. The country experienced devastating floods that resulted in casualties and extensive damage to homes, businesses, and critical infrastructure.

Regional differences and risk risers and fallers

Climate change (18%) may be a non-mover year-on-year at #7 but is among the top three business risks in countries such as Brazil, Greece, Italy, Turkey, and Mexico. The report reveals that South Africa experienced a slight shift in risk perception, with Climate change dropping from the fourth to the seventh spot in 2023. Physical damage to corporate assets from more frequent and severe extreme weather events are a key threat. The utility, energy and industrial sectors are among the most exposed. In addition, net zero transition risks and liability risks are expected to increase in future as companies invest in new, largely untested low-carbon technologies to transform their business models.

Unsurprisingly, given ongoing conflicts in the Middle East and Ukraine, and tensions between China and the US, Political risks and violence (14%) is up to #8 from #10.The risk moved down one place to #6 in South Africa. 2024 is also a super-election year, where as much as 50% of the world’s population could go to the polls, including in Ghana, Mauritius, Senegal, South Africa, India, Russia, the US, and UK. Dissatisfaction with the potential outcomes, coupled with general economic uncertainty, the high cost of living, and growing disinformation fueled by social media, means societal polarization is expected to increase, triggering more social unrest in many countries.

However, there is some hope among Allianz Risk Barometer respondents that 2024 could see the wild economic ups and down experienced since the Covid-19 shock settle down, resulting in Macroeconomic developments (19%), falling to #5 from #3. Yet economic growth outlooks remain subdued – just over 2% globally in 2024, according to Allianz Research.

“But this lackluster growth is a necessary evil: highinflation rates will finally be a thing of the past,” says Ludovic Subran, Chief Economist at Allianz. “This will give central banks some room to maneuver – lower interest rates are likely in the secondhalf of the year. Not a second too late, as stimulus cannotbe expected from fiscal policy. A caveat is the considerable number of elections in 2024and the risk of further upheavals depending on certain outcomes.”

In a global context, the shortage of skilled workforce (12%) is seen as a lower risk than in 2023, dropping from #8 to #10. However, businesses in Central and Eastern Europe, the UK and Australia identify it as a top five business risk. Given there is still record low unemployment in many countries around the globe, companies are looking to fill more jobs than there are people available to fill them. IT or data experts are seen as the most challenging to find, making this issue a critical aspect in the fight against cyber-crime.

View the full global and country risk rankings

About the Allianz Risk Barometer

The Allianz Risk Barometer is an annual business risk ranking compiled by Allianz Group’s corporate insurer Allianz Commercial, together with other Allianz entities. It incorporates the views of 3,069 risk management experts in 92 countries and territories including CEOs, risk managers, brokers and insurance experts and is being published for the 13th time.

For further information please contact:

About Allianz Commercial

Allianz Commercial is the center of expertise and global line of Allianz Group for insuring mid-sized businesses, large enterprises and specialist risks. Among our customers are the world’s largest consumer brands, financial institutions and industry players, the global aviation and shipping industry as well as family-owned and medium enterprises which are the backbone of the economy. We also cover unique risks such as offshore wind parks, infrastructure projects or Hollywood film productions. Powered by the employees, financial strength, and network of the world’s #1 insurance brand, as ranked by Interbrand, we work together to help our customers prepare for what’s ahead: They trust us to provide a wide range of traditional and alternative risk transfer solutions, outstanding risk consulting and Multinational services, as well as seamless claims handling. The trade name Allianz Commercial brings together the large corporate insurance business of Allianz Global Corporate & Specialty (AGCS) and the commercial insurance business of national Allianz Property & Casualty entities serving mid-sized companies. We are present in over 200 countries and territories either through our own teams or the Allianz Group network and partners. In 2022, the integrated business of Allianz Commercial generated more than €19 billion gross premium globally.

These assessments are, as always, subject to the disclaimer provided below.

Cautionary note regarding forward-looking statements

This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements.

Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in Allianz’s core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including related integration issues and reorganization measures, and (xii) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

No duty to update

Allianz assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.

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By Nontobeko Gcabashe

Urgent and continuous action is needed – beyond 16 Days of Activism – to combat violence against women and children.

This past year, South Africa observed 16 Days of Activism for No Violence Against Women and Children from November 25 until the December 10, while the world commemorated International Human Rights Day. For South Africa, this campaign is an incredibly important one.

In the middle of November 2023, General Bheki Cele, South Africa’s Minister of Police, released the crime statistics for the second quarter of the 2023/24 period and the numbers paint a bleak picture of the lived experiences of women and children across the country.

Within a period of just three months, from July to September, over 10 000 cases of rape were officially reported. And these figures only scratch the surface of the real situation as so many incidents go unreported. The numbers also represent lives lost, families broken and a societal issue that needs immediate and continuous attention. As such, while campaigns like 16 Days of Activism are critical to raise awareness and spark action, there is an even greater need for more persistent, year-round efforts.

The 16 Days of Activism campaign is undoubtedly pivotal, but it is the ongoing, daily work of grassroots organisations, community leaders and individuals that will make a real difference. Interventions like this serve as a space where victims can get crucial support and can be educated about how to get out of their situation. Furthermore, these initiatives make it possible to reach the many survivors who remain hidden because of fear of their perpetrators.

As our country prepares for the upcoming 2024 general elections, there will likely be a sudden increase of attention around gender-based violence (GBV). While opportunistic and illustrative of a lack of genuine commitment, we cannot let these conversations hinder our efforts to champion a consistent fight against GBV.

During the Second Presidential Summit on GBVF in November 2022, President Cyril Ramaphosa acknowledged that government is far from reaching its desired goal of effectively combating GBVF. While this definitely represents a step in the right direction – as it highlights the extent of this issue – real action is needed throughout the year, not only to during the 16 Days of Activism campaign. To get this right, greater support and more funding for programmes that support GBV responses are necessary.  

Comprehensive education programmes in schools that challenge and change harmful gender norms are needed. Additionally, increased funding for shelters and counselling services, well as stronger legal frameworks to protect survivors and hold perpetrators accountable are essential. It is also vital to form strong partnerships with different communities to provide resources and amplify awareness efforts.

While we recognise the efforts directed towards organising campaigns like 16 Days of Activism, it becomes ‘just another event’ if we only accelerate our efforts during this time. We hear and see high-profile cases of GBV daily. We need to sharpen our focus and ramp up our efforts to ensure this scourge receives the attention it requires so that we can make a tangible, positive impact. The culture of overreliance on key events will not help us. GBV is a daily tragedy and our response has to be equally persistent. 

Nontobeko Gcabashe is the Manager of the Kagisano programme lead implemented by Afesis.

[1] South African Government. 2022.  https://www.gov.za/speeches/president-cyril-ramaphosa-second-presidential-summit-gender-based-violence-and-femicide-1 

Tipping the balance of power to reduce grid pressure

Johannesburg, 13th of December 2023: Stage Zero, an independent power provider in South Africa, has launched a range of reliable, sustainable and affordable energy solutions to alleviate grid pressure and load shedding frustration experienced by many South African homes and businesses.

Recently, electricity minister Kgosientsho Ramokgopa, announced that the government was making progress in its bid to urgently upgrade the nation’s ailing energy infrastructure. While well-intentioned, these efforts will still leave millions in the dark for years to come and long-term energy alternatives are complex and costly.

Energy independence without breaking the bank:

Over the past few years, Eskom has repeatedly implemented double-digit percentage increases in electricity tariffs. The most recent came earlier this year when it announced an increase of more than 18%. This, combined with the worst year of load shedding on record, has created an untenable situation for ordinary South Africans and unfortunately, many of the alternative energy solutions require large initial investments that may not pay themselves off.

Stage Zero, a new entrant in the independent energy industry, helps everyday South Africans save money and reduce their reliance on Eskom by offering its customers access to portable, solar and backup battery solutions at an affordable monthly service fee, that meets their specific needs. Additionally, ongoing maintenance, and a replacement guarantee of their power solutions are also included, removing the risk, additional costs and hassle from the customer or business owner. Stage Zero customers are also able to upgrade their plans as new and improved solutions become available. 

Abraham van der Merwe, CEO of Stage Zero says, “We want to make electricity as accessible as possible to as many people as possible. To do this, we enter into short-term contracts with homeowners, renters and businesses who wish to save on their utility bills or reduce their exposure to load shedding and as a result, our customers have greater control over their energy requirements.”

Leave it to the experts:

One of the biggest problems in the alternative power solutions space has been complexity. It is unreasonable to expect the average consumer to understand and provide their consumption profiles or be able to grapple with the intricacies of photovoltaic (PV) technology. Most people cannot take time away from their family lives or jobs to invest in knowing enough to be able to oversee the sizing and specification planning of a given solution, especially when that knowledge does not guarantee savings. What’s more, many solar users find themselves spending a fortune on energy systems that may not meet their future demands. Stage Zero alleviates that burden by providing easy-to-understand solutions that don’t burden customers with long contract terms.

“By helping reframe our energy crisis from one where households own a problem to one where a company solves that problem for households, Stage Zero is showing what happens when local companies conjure up solutions to South African problems. Most importantly, its giving South Africans a glimpse of what our world could look like when we finally hit stage zero,” says van der Merwe.

-- ENDS -- 

About Stage Zero:

Stage Zero is an independent power provider in South Africa, offering reliable, sustainable, and affordable energy solutions to homes and businesses. We want to remove the price barriers so that South Africans can become energy independent – producing their own sun-fuelled power and storing it to skip load shedding. For more information and to get started visit www.stagezero.co.za.

The first Global Stocktake is set to conclude at COP28 which allows the global community to measure the progress made since the signing of the Paris Agreement and to take collective action to accelerate mitigation, adaptation, and financing for further climate ambition.

Dalit Anstey, an ESG knowledge lawyer at Webber Wentzel, examines South Africa's climate policies and its evolving energy transition in light of recent changes. Anstey emphasises critical discussions expected at COP28, underscoring the importance of justice considerations.

The Global Stocktake (GST)

The 2023 edition of the United Nations Climate Change Conference of the Parties (COP28) will be unique as the first-ever GST is set to conclude, providing an opportunity for the global community to measure the progress made since the signing of the Paris Agreement and to take collective action to accelerate mitigation, adaptation, and financing for further climate ambition. This five-year event aims to inform future climate action plans, notably the nationally determined contributions.

The GST highlights the implementation gaps across all areas in the Paris Agreement. There is a mitigation gap, with the current trajectory of global emissions not being consistent with limiting the global temperature rise to 1.5 degrees Celsius. Furthermore, adaptation to climate change is not at the levels required. Anstey noted that certain African nations have criticised the GST's documentation for overlooking the importance of sustainable development policy, equity and just transitions.

South Africa's "Stocktake"

South Africa is infamously known as the highest emitter of greenhouse gas (GHG) emissions in Africa and one of the highest emitters in the world, due to its disproportionately high reliance on fossil fuels in the energy mix. As a signatory of the Paris Agreement, and in line with the principle of "common but differentiated responsibilities and respective capabilities, in the light of different national circumstances", as set out in Article 4.3, South Africa has committed to various climate change targets which it believes is its "fair share".

Over the years, South Africa has published a series of significant climate change policies. Webber Wentzel delves into some of these policies in an article title: cross-jurisdictional assessment of the development of climate change-related legislation across the continent. Sustainable finance policies are also starting to surface, including guidance to banks and insurers on climate-related risks and disclosures and a green finance taxonomy.

Anstey highlights a key concern, "these policies lack teeth, as their enforceability is questionable from a legal standpoint. Some suggest that what is required in this space given the severity of the climate crisis is decisive law and policy to move the dial. South Africa introduced the Carbon Tax Act 15 of 2019."

On 24 October 2023, the National Assembly passed the momentous Climate Change Bill (B9-2022) (Bill) which focuses on establishing a strategy for addressing climate change and implementing a fair, long-term energy transition plan to ultimately foster a low-carbon, climate-resilient economy in South Africa. The Bill is a crucial, first step to ensuring the country has a legal instrument to build the capacity to respond to the impact of climate change and reduce emissions in a way that is appropriate to national circumstances. The Bill will introduce the concept of a "carbon budget" which limits the amount of GHGs an entity is entitled to emit. To find out more information about the architecture of the Bill, read Webber Wentzel's insight on Climate Change Bill introduced in Parliament. The Bill will still face its final hurdles before it becomes an act of Parliament – it requires the concurrence of the National Council of Provinces and the President's signature.

"The Bill first surfaced in 2018 when it was published for public comment. It is overdue but arguably a necessary tool to enable South Africa to achieve its climate change ambitions. There have been many policy developments since 2018, especially concerning the Just Energy Transition (JET) and we hope that the puzzle pieces all ultimately fit together," states Anstey.

South Africa positioned itself as a poster child for the JET, inviting international and local investors to partner with the nation to achieve energy security, economic growth and tackle systemic challenges, such as poverty, inequality, and unemployment, while achieving its climate change targets.

To date, South Africa has secured approximately USD 9.3 billion from international partners for the JET but recently noted in the approved JET Implementation Plan that it requires just short of USD 80 billion to fund the JET. More has to be done on this front to address the shortfall, including addressing underlying critical governance failures and regulatory bottlenecks.

"We are seeing developments and the growth of voluntary carbon markets in Africa, since the launch of the Africa Carbon Markets Initiative at COP27 in Egypt, which is a coalition of organisations focused on high integrity climate impact, clean energy, and sustainable development, to accelerate the growth of Africa's voluntary carbon markets. The Johannesburg Stock Exchange (JSE) Ventures Carbon Market was launched in October 2023, it is a venture between the JSE and Xpansiv, providing a platform to buy and sell carbon credits or renewable energy certificates. Carbon markets have been identified as an important tool for governments and the private sector seeking to achieve climate change objectives and can direct capital flows to developing countries for projects that strengthen climate change resilience. However, there have been some uncertainties regarding the legal nature of carbon credits, regulation of carbon trading, carbon offset project credibility and oversight mechanisms. These issues must be resolved if we are to take the carbon market forward," asserts Anstey.

Looking to COP28

Some of the main agenda items at COP28 include the GST, accelerating the global energy transition, climate finance, the loss and damage fund (which was launched on the first day of COP 28) and leadership in climate action. However, the Mininster of Forestry, Fisheries and the Environment (Minister) noted at the National Stakeholder Consultation on South Africa's Negotiating Mandate for COP28 that COP28 also provides a key platform for broader conversations. The Minister noted the following three broader conversations that will be taking place on the margins of COP28:

• how developing countries in Africa can take advantage of their abundant, renewable energy, resources, and strategic minerals to build, shared prosperity and sustainable development on the continent;
• the threat to sustainable development posed by unilateral trade measures imposed outside of the Paris Agreement and arguably, in violation of the key principles of the Paris Agreement (the Minister highlighted the European Union's Carbon Border Adjustment Mechanism in particular); and
• the pressing need for transformation of the global financial architecture to make the global financial system fit for purpose in assisting countries to combat climate change and also to achieve their sustainable development goals.

"The underlying theme of the topics of the "fireside chats", as well as the main agenda items for COP28 clearly demonstrate that fundamental questions regarding climate justice remain unresolved. These fundamental justice concerns, which global "south" countries argue have been historically ignored by global "north" countries, must be brought to the fore at COP28 and beyond, especially if we are to truly take stock of the international climate change regime," concludes Anstey.

Robyn Shepherd | SchoemanLaw Inc  

Category: Contract Law | Contract 

Introduction 

In the realm of contractual law, instances of mistake or error can introduce complexities by causing dissension between contracting parties. This article delves into the nuances of contractual mistakes, their categorizations, and the legal considerations associated with them. 

Types of Mistakes 

Unilateral Mistake 

Unilateral mistake occurs when one party is mistaken, and the other party is aware of the error. This situation introduces an asymmetry of information between the contracting parties. 

Mutual Mistake 

The mutual mistake arises when both parties are mistaken about each other's intentions, leading to a divergence in their understanding of the contract's terms. 

Common Mistake 

Unlike unilateral or mutual mistakes resulting in dissensus, a common mistake, while not causing disagreement, renders the contract void based on an incorrect underlying assumption. 

Materiality of Mistakes 

The materiality of a mistake hinges on its influence on a party's decision to enter into a contract. Material mistakes are further classified into: 

Material Mistake: A mistake that vitiates or negates actual consensus between parties, relating to or excluding an element of consensus. Non-material Mistake: A mistake that does not affect the actual agreement between parties, as it does not pertain to an element of consensus. 

Mistakes have historically been categorized based on their types: 

Error in Corpore: Mistake concerning the contract's subject matter or object of performance, deemed material. Error in Negotio: Mistake regarding the nature of the contract, considered material. Error in Persona: Mistake about the identity of the other party, deemed material only if crucial to the mistaken party. Error in Substantia: Mistake regarding an attribute or characteristic of the contract's subject matter, generally not considered material. Mistake as to Motive: Not considered material. Error Iuris: Mistake of law, not considered material if it relates to motive. 

To avoid undue hardship and maintain the reliability of contractual commitments, the courts have balanced subjective and objective bases of contracts through doctrines such as estoppel, quasi-mutual assent, and the iustus error approach. 

Estoppel: A party relying on a misrepresentation may hold the other party to the misrepresented facts, upholding a fictional contract. 

Reliance Theory: Requires a reasonable belief induced by the other party, giving rise to an actual contract. 

Declaration Theory: Grounds contractual liability purely on objective declarations of will, irrespective of inner will or actual intention. 

Iustus Error Approach: Places the onus on the contract denier to prove that their mistake is both material and reasonable. 

Conclusion 

Understanding the intricacies of contractual mistakes is essential in navigating legal challenges. Whether unilateral, mutual, or common, the classification and materiality of mistakes play a pivotal role in determining contractual outcomes. The harmonization of subjective and objective approaches further ensures a balanced and fair resolution of disputes arising from contractual mistakes. 

Consult an Attorney by contacting SchoemanLaw Inc today! 

Robyn Shepherd | SchoemanLaw Inc 

Attorney  

https://schoemanlaw.co.za/our-services/contract-law/  

Johannesburg, 21 November 2023 – To lower its carbon footprint and contribute to more sustainable energy usage, integrated OOH media and marketing services group Provantage has installed a 100kW solar power solution at its head office in Johannesburg. The complete renewable energy solution, supplied and installed by Averge Technologies, is now up and running, ensuring that the Randburg office is 90% self-sufficient while supporting Government’s sustainability initiatives.

Installed in September this year, the solar system currently provides 100kW of green renewable energy. This will be increased to 150kW by December. A total of 180 460w solar panels were installed on the Provantage Head Office roof, with an additional 45 to be installed by year-end.

Provantage CFO and Head of Operations, Johan Scholtz, explains, “At Provantage, one of our core values is maintaining a sustainable business. Having previously had generators installed to mitigate load-shedding; while we maintained business continuity, the continued burning of fossil fuel was not a sustainable option. Solar power was the most viable and environmentally friendly choice in the long term.”

By implementing this energy-efficient solution, Provantage is aligning itself with the Small-scale Embedded Generation (SSEG) sector, a sector which by the end of Q2 2023 had seen a total installed capacity of 1247.63 MWp according to The South African Photovoltaic Industry Association (SAPVIA), contributing to the broader landscape of solar installations in the commercial and industrial sectors.

Provantage company H&A (Hewitt + Associates) also implemented several renewable energy solutions at its Mount Edgecombe offices in Kwa-Zulu Natal last year, setting aside 15% of its footprint for trees and garden, using cognitive, energy-efficient lighting throughout its premises and using ridgeline venting for greater climate control. Currently, over 40% of H&A’s daily power requirements come from renewables and 50% of its factory roof is covered by solar panels. This paved the way for a more sustainable approach for all the Provantage companies, with productivity across the board set to be maximised due to uninterrupted power.

Scholtz adds, “In the interest of better service delivery, Government has called on South Africans to live more energy-efficient lives to help ease the pressure on the power grid. We have heard them and hope to lead by example, reducing our carbon footprint and using energy more responsibly. This is not just a passing trend. Consumers are more concerned about sustainability than ever before, and as a responsible brand, we owe it to them and Government to take action.”

Over the next decade, Provantage will reduce its carbon emissions by over 135 tonnes a year, saving over 50 tonnes of coal that would have been burnt annually. This translates to the equivalent of almost 9500 trees planted every year. Additionally, the disruptive nature of load-shedding was previously mitigated through the use of generators. But as diesel will no longer be used to power the building during outages, a significant reduction in harmful fossil fuel emissions will be achieved.

Ettiene Visser, Averge CEO adds, “Provantage’s choice to adopt a more sustainable approach is blazing a trail and will serve as a successful case study that will pay for itself within three-five years. At the same time, this comprehensive hybrid solution produces a drastically reduced carbon footprint with less reliance on the National Electricity Grid. With these contingencies in place, Provantage’s sustainability maximised and cost savings guaranteed – and also, very importantly, with business continuity ensured, service delivery across the board is assured.”

Driven by its sustainable values, Provantage continues to lead by example, showcasing how businesses can drive positive change while achieving operational excellence. Scholtz concludes, “While South Africa continues to face service delivery challenges, we feel that private sector companies have an obligation to reduce the pressure, bolstering economic growth and more responsible energy usage wherever possible. We stand by our values, making sustainability paramount, and continue to explore energy-efficient solutions across all the operating companies within the group.”

SMEs are more vulnerable to economic shocks and the impacts of business interruption than larger companies, with rising cyber-crime exerting a particularly serious toll on their activities.

Small and medium-sized enterprises (SMEs) represent about 90% of businesses and provide more than 50% of employment worldwide, according to the World Bank.[1]

The European Commission says SMEs represent 99% of all businesses in the EU, employ around 100 million people, and contribute half of the bloc’s GDP[2], while in the US, the country’s 30 million SMEs account for nearly two thirds of net new private sector jobs in recent decades[3]. In Germany, the specialist businesses of the famous ‘Mittelstand’ are widely regarded as a model of resilience and innovation. According to the World Economic Forum[4], although SMEs account for 95% of all registered businesses and contribute about 50% to the total GDP of sub-Saharan countries, entrepreneurs still face significant obstacles to growth and prosperity, which go beyond the traditional barrier of acquiring finance.

In South Africa, SMEs contribute around 34%[5] to the GDP and play a vital role in the economy as drivers for reducing unemployment. SMEs contribute 48%[6] to Nigerian GDP making them a critical driver of economic growth and development. In Kenya, SMEs constitute 98 percent [7]of all business and create 30 percent of the jobs annually as well as contribute 3 percent of the GDP. Over 90 percent [8]of business enterprises in Ghana are SMEs.

It’s no wonder so many world leaders describe SMEs as the ‘backbone’ or ‘lifeblood’ of the economy.

Yet, for all their agility and dynamism, SMEs are vulnerable to economic shocks and uncertainty. The World Economic Forum believes 67% of smaller and mid-sized businesses are fighting for survival, in part because of the intense short-term business pressures they face, their limited expertise and resource constraints[9].

And according to the 2023 Allianz Risk Barometer, an annual survey which identifies the top corporate risks as voted for by firms around the world, one of the major causes of financial disruption that SMEs fear the most is a serious cyber incident. This ranks as the top risk for small-size companies (31% of respondents), while for mid-size companies, it is their second top concern (29% of respondents), ranking just behind the closely interlinked peril of business interruption.

An increasing sweet spot for hackers

For SMEs, the cyber risk threat has intensified, not only due to the Covid-19 pandemic and the switch to remote working and digitalization, but also because of their growing reliance on outsourcing for services, including managed IT and cyber security providers, given these firms often lack the financial resources and in-house expertise of larger organizations.

As larger companies have ramped up their cyber protection in recent years, criminals are increasingly focusing their attention on smaller businesses. According to Mastercard’s RiskRecon[10], data breaches at small businesses globally rocketed 152% in 2021, while breaches at larger companies during the same time period rose by 75%. More than half (54%) of SMEs in the UK experienced some form of cyberattack in 2022, up from 39% in 2020, according to Vodafone[11].

SMEs are less able to withstand the business interruption consequences of a cyber-attack. If a small company with poor controls or inadequate risk management suffers a significant cyber incident, there is a chance it might not survive in the long run. In recent years, progress has been made, and there has been good collaboration between insurers, brokers, and clients, but more awareness of, and risk management education about, cyber risk is needed, and the insurance industry has a responsibility to help smaller companies with this process.

Deploying detection software

“To effectively address cyber security challenges, SMEs should remain vigilant and have a clear understanding of the risks involved and allocate ample resources in terms of personnel, IT infrastructure, and budget to implement the required security measures,” says Rishi Baviskar, Global Head of Cyber Risk Consulting, Allianz Commercial.

“Initiating a conversation with an MSSP [Managed Security Service Provider] can serve as an excellent initial move, allowing for the creation of an IT budget and strategy tailored to the business’s specific priorities.”

Businesses can take a proactive approach to tackling cyber threats by ensuring their cyber security strategy identifies their most crucial information system assets. Then, they should deploy appropriate detection tools and techniques tailored to uncover and nullify potential threats attempting to gain network access.

“These measures encompass the use of detection and monitoring software, both at the network perimeter and on endpoints, often involving collaboration with cyber-security service partners,” Baviskar concludes.

Top 3 risks for mid-size companies*

Business interruption (incl. supply chain disruption) 35% 2022: 1 (43%) →
Cyber incidents       29%  2022: 2 (36%) →
Energy crisis       24%  NEW

*US$250mn to $US500mn annual revenue. Source: Allianz Risk Barometer 2023. Total number of respondents: 519. Respondents could select more than one risk.

Top 3 risks for small companies*

Cyber incidents       31%  2022: 1 (39%) →
Macroeconomic developments     28%  2022: 8 (15%) ↑
Business interruption (incl. supply chain disruption) 23%  2022: 2 (32%) ↓

*<US$250mn annual revenue. Source: Allianz Risk Barometer 2023. Total number of respondents: 912. Respondents could select more than one risk.

Our expert

Rishi Baviskar | This email address is being protected from spambots. You need JavaScript enabled to view it.

[1] The World Bank, Small and Medium Enterprises (SMEs) Finance
[2] European Commission, Entrepreneurship and small and medium-sized enterprises (SMEs)
[3] Office of the United States Trade Representative, Small and Medium-Sized Enterprises (SMEs)
[4] Why Africa’s SMEs need more than money to ensure their growth, July 14, 2023
[5] University of Stellenbosch, SMEs need support to thrive – Prof Stan du Plessis, June 27, 2023
[6] An Evaluation Of The Contribution Of Small And Mediums Scale Enterprises (SMEs) To The Economic Development In Nigeria, May 28, 2023
[7] SMEs critical in attaining manufacturing dream, April 17, 2023
[8] Economic contribution of SMEs in Ghana, July 27, 2022
[9] World Economic Forum, Smaller and mid-sized businesses are fighting for survival. This is how they could prosper, July 14, 2023
[10] RiskRecon by Mastercard, Small Business, Mighty Attack Surface, August 23, 2022
[11] Vodafone, Half of SMEs experience surge in cyberattacks – Vodafone research reveals, February 15, 2023

Paul Terna Gbahabo is a research consultant and a PhD graduate in Development Finance at Stellenbosch Business School. 

Africa, a continent of immense potential, stands at a critical juncture. The call for an industrial revolution is not merely a suggestion but an economic imperative. Africa desperately needs an industrial revolution. Though daunting, it is not beyond reach – it has been accomplished elsewhere in Europe, North America, and recently in East Asia.

Why can't Africa spearhead its own economic and technological revolution? This transformative change entails rapid enhancements in productivity growth, driven by increased technical proficiency and efficiency rates across all economic sectors. The agenda for this transformation must encompass strategic policies promoting mechanisation in production, especially in agriculture and artisanal economies. Digitalisation, particularly in service sectors and government operations, is crucial, along with ensuring a consistent and dependable energy supply — where nuclear energy could be a viable consideration. Additionally, leveraging labor-intensive manufacturing (such as food processing, textiles, and apparel) can be a potent policy tool to foster decent job creation and mitigate the continent's soaring unemployment rates. Significant improvements in transportation and communication infrastructure are also imperative.

However, it's crucial to reflect on the context that highlights the urgency of this moment and characterises Africa's precarious realities, largely due to its failure to industrialise.

Consider the stark reality faced by the African continent during the COVID-19 pandemic. The potential devastation loomed large if the pandemic had been deadlier, more virulent, and centered in Africa. The situation isn't far-fetched; think of the Bubonic plague that ravaged Europe's labor force in the 14th century, resulting in an estimated death toll averaging around 25 million in Europe alone. Despite initial fears that Africa could easily have been the pandemic's epicenter due to the prevailing poor healthcare systems in many African nations, the continent escaped relatively unscathed. However, during the race for limited vaccine supplies, many African economies found themselves outbid and completely sidelined from the initial phases of vaccine distribution. African leaders, led by President Cyril Ramaphosa, found themselves at the mercy of Western industrial powers, pleading for consideration of Africa's vaccine needs. This reliance showcased Africa's lack of development in manufacturing its vaccine technology.

Furthermore, the tragic scenes of African youths drowning in overcrowded, ill-equipped boats while attempting to reach Europe in search of employment opportunities paint a grim picture. In 2023 alone, over 2,500 migrants, primarily African, perished in attempts to cross the Mediterranean. Since 2014, the International Office on Migration's report highlights over 29,000 youths dying while attempting this perilous journey.

These distressing events are not isolated; they occur against a backdrop of technological backwardness, lack of visionary leadership, and the consequent social and economic deprivation that has plagued Africa for too long. The continent's failure to undergo an industrial revolution, capable of radically transforming its economic base and enabling global competitiveness, remains the bane of its existence.

The expansion of manufacturing output and employment lies at the core of industrialisation. Manufacturing possesses unique qualities that give it a significant advantage in accelerating economic development. Beyond being a net job creator, it facilitates economic diversification and global competitiveness. Manufacturing's capacity for technology transfer and absorption surpasses other sectors, as it produces tradable goods and can swiftly integrate into the global production value chain. However, the unimpeded progress of manufacturing requires an active and robust industrial policy, unlike agriculture and services.

The United Nations Industrial Development Organization estimates that manufacturing alone generates more than half a billion jobs globally. From low-tech, labor-intensive manufacturing to high-tech machinery and electronics assembly plants, the industry has the potential to employ a diverse workforce, offering a solution to create millions of jobs. This employment generation capability makes manufacturing a potent instrument to improve living standards, alleviate poverty, and foster economic inclusivity.

Recent studies highlight those low-tech industries such as Food and Beverages, Textiles, and Apparel exhibit higher employment intensity ratios, followed by high-tech sectors like electrical machinery, automobile, and machinery equipment. Thus, emphasising specialisation in these sectors could generate numerous job opportunities. Conversely, medium-tech enclave industries like mining refineries, chemicals, and basic metals are less likely to create sufficient employment opportunities.

The benefits of an industrial revolution in diversifying Africa's economy and enhancing its global competitiveness would be immense. Diversification stands as the cornerstone of a resilient economy. Africa's overreliance on resource-based industries has left it vulnerable to commodity price fluctuations. Harnessing the potential of manufacturing can mitigate this vulnerability.

Data from the World Bank Development Indicators shows that currently, Africa's merchandise export base is dominated by low-benefit commodity exports at 62%, while manufactured goods stand at a mere 22%. In comparison, other regions like East Asia, Europe, North America, and Latin America export 84%, 71%, 54%, and 46% of manufactures respectively. Expanding into manufacturing will reduce dependence on commodity exports and bolster global competitiveness. Moreover, industrialisation broadens economic sectors, fuels long-term growth, and diminishes the risks of commodity price fluctuations. By diversifying into a spectrum of goods and services, Africa can enhance its trade balance, decrease imports, and compete effectively on the global stage.

In this connection, an argument may be made concerning South Africa's promise towards Africa’s industrialisation. An active industrial policy in South Africa could potentially spark a continent-wide industrial revolution, much like 18th-century Britain's pivotal role in spreading the Industrial Revolution to continental Europe and North America. Through technology transfer, British entrepreneurs and engineers shared knowledge with other economies, fostering learning by emulation. South Africa, having undergone industrialisation, stands as a seedbed, a blueprint, and an economic hub from which a meaningful African industrial revolution could originate. Alternative approaches might present steeper learning curves. To save itself and the continent, South Africa must initiate re-industrialisation by actively pursuing increased manufacturing value-added targets across industries and reversing the declining trend in manufacturing employment. Data from the Economic Transformation Database indicate that currently, South Africa's manufacturing employment share sits at a meager 9% of total employment, down from 14% in 2005. This stark decline contrasts with emerging economies like Vietnam, Mexico, and Turkey, which average at 18%.

Africa's Industrial Revolution is not merely a lofty aspiration but a moral and economic imperative. Its potential for economic diversification, job creation, technology transfer, infrastructure development, and enhanced global competitiveness is substantial. The time has come for Africa to seize this opportunity and embark on a path towards prosperity. The industrial revolution isn't just a hopeful wish; it's the future Africa rightly deserves. A successful re-industrialisation strategy in South Africa, supported by a robust industrial policy, can serve as a model for other African nations. Active technology transfer and learning by emulation will eventually reshape the economic landscapes across the continent.

Ransomware-as-a-Service is surging worldwide, turning extortion into a commodity

JOHANNESBURG, South Africa, November 16, 2023/ -- Ransomware attacks are a global concern, with a shocking 40% increase in both frequency and severity over the last year. “South Africans are at significant risk due to the increasing use of Ransomware-as-a-Service (RaaS),” warns Anna Collard, SVP Content Strategy & Evangelist at KnowBe4 AFRICA (www.KnowBe4.com). Using RaaS also increased by 40% (https://apo-opa.co/49Bynp3) over the last year. Threat actors now sell their sophisticated ransomware solutions and services, keeping up to 80% of the profits.

Ransomware attacks are rapidly posing a greater threat due to the availability of RaaS solutions on the dark web. These solutions can be purchased at varying prices, ranging from less than $100 to thousands of dollars. The ease of access to these kits, coupled with the fact that they often come with customer support, allows attackers to quickly set up and execute multiple ransomware attacks with little to no technical skill.

This accessibility to RaaS solutions has led to the evolution of ransomware, with cybercriminals focusing on enhancing its sophistication and capabilities. The aim is to create a product that is highly effective and profitable, catering to the demands of potential buyers in the cybercriminal market. They readily select their ransomware from a shopping list, pay the creators, and go. This represents the epitome of commodity attacks — a matter of utmost concern, especially for South Africa.

“One of the key factors contributing to South Africa’s vulnerability to these types of attacks is the widespread use of English,” explains Collard. “Attackers often need to negotiate with their victims, which means they need to speak a common language. It is difficult to negotiate with someone whose culture and language you do not understand. As a result, Western countries are more frequently targeted because of a higher percentage of threat actors originating from Europe. South Africa, with its strong English speaking business culture, advanced digital infrastructure, and thriving financial services ecosystem, is consequently at risk of being targeted by these attacks.”

In South Africa, both the private and public sectors rely significantly on digital infrastructure for their critical operations. Companies are prioritising digitalisation efforts to maintain their competitiveness in the local and global markets. This strategic investment in digital technologies has proven invaluable, enabling companies to navigate through the challenges posed by the pandemic and fostering remarkable innovation. In fact, South Africa was recognised as the most innovative country in Africa in 2022 (https://apo-opa.co/3SJXgJ8). However, this increased reliance on digital platforms has also exposed the country and its companies to vulnerabilities and risks.

“North America was the primary ransomware target for a long time but there has been a downward trend because the government has come down hard on these criminal organisations,” says Collard. “They have the resources, law enforcement, and probably the budgets to clamp down on cybercrime syndicates that South Africa does not. In short, countries like the United States have become more responsive to threats and so the bad actors are turning to countries that do not have these resources or systems in place.”

When we combine this significant change in targeting, as highlighted in the recent Cy-Xplorer 2023 report by Orange Cyberdefense (https://apo-opa.co/3R2aboD), with the swiftly evolving RaaS market, it is obvious why South African organisations need to stop and pay attention to the rising ransomware threat. It has been commoditised and simplified, turned into a solution as easy to use and implement as an app for a smartphone. Plug, play, steal.

“RaaS presents a very real and constantly evolving challenge to cybersecurity specialists and organisations,” concludes Collard. “The methods of attack, the approaches, the level of sophistication—it is very easy for anyone to be caught out. End users must remain vigilant to ensure that they do not become the reason a company falls victim to ransomware, and companies must continually train and remind employees of the risks to prevent complacency.”

User awareness is critical. If people can recognise threats, they will not click on links or make mistakes. If people are aware of how easy it is to be fooled by fake emails and sites, they will be cautious with their passwords and their information. If companies constantly reinforce these messages, they are protecting their data, their people and their systems from an onslaught of RaaS threats that are only set to get even better and more prevalent in the future.

Distributed by APO Group on behalf of KnowBe4.

SOURCE: KnowBe4

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Blog First Published at https://shedtheload.co.za/blogs/solar-battery/shoto-5-12kwh-lithium-ion-battery-powering-a-sustainable-future