Umbiko Ongemuhle Ngalelizwe Kwa-World Economic Forum

By: Lindelani Mbatha

The World Economic Forum (WEF) has published its global risks report, detailing some of the key risks facing South Africa over the coming years.

The forum has detailed that Covid-19 and its economic and societal consequences continue to pose a critical threat to the world at the start of 2022.

South Africa has also been identified as one of 31 countries, including Argentina, France, Germany and Mexico, with high risks around the ‘erosion of social cohesion.

According to the findings, the five biggest risks facing South Africa include; prolonged economic stagnation, employment and livelihood crises, state collapse, failure of public infrastructure and the proliferation of illicit economic activity.

These disparities are now expected to widen further: research by the World Bank estimates that the wealthiest 20% of the world’s population will have recovered half their losses in 2021, while the poorest 20% will have lost 5% more of their income.