Tag: extreme weather

Among the greatest threats facing infrastructure development today is climate change. To mitigate the associated risks for all sector stakeholders, we urgently need to make better use of modern technologies. We also need to establish contractual frameworks that are appropriately structured from the outset.

The agriculture sector is integral to the South African economy. It contributes around R400 billion to GDP each year. Additionally, it supports approximately 870,000 jobs across the country. The sector also generates USD13 billion in export revenue annually. Moreover, it plays a critical role in supporting South Africa’s food security.

Over the last couple of years, climate-related disasters have increased in both frequency and intensity. These disasters have accelerated rapidly, creating a physical and socioeconomic divide in risk exposure and protection.

As more people move to urban areas, cities must become more efficient, sustainable, and liveable. Smart city initiatives lead this shift by leveraging advanced technologies to transform urban life.

Climate change-induced extreme weather events have remained elevated across the globe in the last decade, proving disruptive to both economic and social activities. According to the global reinsurance broker, Aon, the 2023 economic losses due to natural catastrophes was 22% above the 21% century average – raising questions about the long-term affordability and sustainability of cover for vulnerable communities.

With an economic growth forecast of only 1.6% over the next three years for South Africa, businesses are facing a tough trading environment, exacerbated by the impact of geopolitical tensions, disruptive new technologies, persistent weather catastrophe threats and failing public infrastructure and services.

Mitigating the increasing effects of climate change has become a top priority for South African insurers who have collectively paid billions of Rands in related damages over the past five to 10 years. The increasing frequency and severity of severe weather events – such as heavy rainfall and resultant flooding – threatens the sustainability of insurers who must protect the integrity of their balance sheets to continue paying claims for years to come.

The concept of sustainability is considered differently for developing countries versus developed countries. Developed economies tend to look at sustainability with a significant focus towards environmental impact and preservation. In contrast, developing countries consider sustainability from a socio-economic perspective, which includes infrastructure-related challenges, for example.

The construction sector must not be overlooked in the drive towards achieving net zero. While sectors such as industrial manufacturing, mining and fossil fuel power generation tend to grab more headlines, the construction of buildings and infrastructure accounts for approximately 7 Gt CO2e, or 20% of global carbon emissions, where 4 Gt CO2e is associated with the materials used for construction.

Last year was a year of climate carnage in Africa. At least 15,700 people lost their lives to extreme weather disasters, according to the latest report from Carbon Brief, while another 34 million have been affected.