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Global supply chain risks threaten Southern African businesses

20th July 2026

     

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Global supply chain concerns may have eased slightly from record highs, but businesses across Southern Africa cannot afford to become complacent.

According to the latest Chartered Institute of Procurement & Supply (CIPS) Pulse Survey for the second quarter of 2026, procurement and supply chain professionals worldwide continue to report unusually high levels of concern over geopolitical instability, supply disruption and rising cyber risk, reinforcing the need for organisations to build more resilient supply chains.

While short-term concern over supply chain disruption declined from its Q1 peak, the survey found that both short- and long-term anxiety remain among the highest levels ever recorded by CIPS, suggesting that businesses are adapting to a "new normal" of heightened global uncertainty rather than a return to stability.

For Southern Africa, these developments have particular significance.

The region remains heavily dependent on global shipping networks, imported fuel, industrial equipment, chemicals, pharmaceuticals and manufacturing inputs, while many of its largest industries, including mining, agriculture, automotive manufacturing and retail, depend on reliable international supply chains to remain competitive.

The survey found that conflict in the Middle East remains the biggest driver of supply chain concern globally, cited by 75% of procurement professionals, followed by the broader geopolitical environment (67%) and the ongoing war in Ukraine (33%).

Although geographically distant, these conflicts continue to influence freight routes, shipping costs, energy markets and supplier availability, all of which ultimately affect Southern African organisations.

The report also highlights growing concern around cyber security. Cyber-attacks have overtaken logistics disruption as one of the three biggest risks facing procurement professionals over the next 12 months, with concern about cyber threats across supply chains increasing significantly compared with the previous quarter.

The findings suggest procurement professionals increasingly recognise that cyber incidents affecting suppliers, logistics providers or critical infrastructure can rapidly become operational disruptions capable of halting production and delaying deliveries.

Another finding likely to resonate with Southern African organisations is the continued expectation of rising costs across several critical categories.

Procurement leaders identified shipping and logistics, petroleum and mining, chemicals and pharmaceuticals, food and beverages, and fabricated metal products as the sectors most likely to experience input price increases exceeding 10%.

For South African businesses, these increases have the potential to filter through into higher transport costs, imported goods, manufacturing inputs, food prices and mining operations.

The survey also found organisations are continuing to prioritise resilience over cost alone, with supplier diversification, extending supplier contracts and holding additional inventory ranking as the three most important strategies for protecting continuity of supply.

Paul Vos, Regional Managing Director of CIPS Southern Africa, says: "The survey reflects exactly what many procurement professionals across Southern Africa are experiencing. While inflationary pressures have eased in some areas, the operating environment remains highly unpredictable. Businesses can no longer assume that global supply chains will simply return to the way they were before successive geopolitical crises."

"For South African organisations, resilience is increasingly becoming a competitive advantage. That means developing broader supplier networks, strengthening regional sourcing where appropriate, improving visibility across the supply chain and ensuring procurement is represented as a strategic function within the business rather than simply a cost-control exercise."

"As trade across Africa continues to expand through initiatives such as the African Continental Free Trade Area, organisations that invest now in more resilient and agile procurement practices will be better positioned to manage disruption, control costs and capitalise on future growth opportunities."

Ben Farrell MBE, Global CEO of CIPS, says the world was witnessing a fundamental reshaping of global trade.

"The tectonic plates of global trade are shifting. The world we knew has gone. Regionalisation is rising, globalisation is being reshaped, and those organisations that build resilient regional partnerships will be best placed to thrive."

The survey also found that one-third of organisations are already experiencing the effects of evolving US tariff policy, while a further 37% are actively monitoring developments, demonstrating that trade policy uncertainty continues to influence procurement decisions alongside geopolitical conflict.

Dr John Glen, Chief Economist at CIPS, warned that despite some moderation in sentiment, current levels of concern remain historically high and point to an economy still exposed to geopolitical shocks, cyber risk and persistent uncertainty.

 

Edited by Creamer Media Reporter

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