According to the latest Chartered Institute of Procurement & Supply (CIPS) Pulse Survey, companies in South Africa should not relax, as geopolitical conflicts, cyber threats, and trade uncertainty continue to pose serious risks to procurement and business operations.
State of Global Supply Chains
The Q2 2026 study showed that while short-term concerns about supply chain disruptions have decreased compared to record highs at the beginning of the year, the level of anxiety in both the short and long term remains one of the highest ever recorded by CIPS. The findings indicate that businesses are adapting to a prolonged period of global instability rather than expecting supply chains to return to pre-pandemic norms.
South Africa's Vulnerabilities
For South Africa, the report highlights specific vulnerabilities related to the region's dependence on imports of fuel, industrial equipment, chemicals, pharmaceuticals, and manufacturing components. Key sectors such as mining, agriculture, automotive, and retail are heavily reliant on efficient global logistics networks.
Main Sources of Concern
The conflict in the Middle East remains the primary source of concern for procurement professionals worldwide, with 75% of respondents naming it the leading risk to supply chains. This is followed by broader geopolitical instability, mentioned by 67% of respondents, and the ongoing war in Ukraine, cited by 33%. Although these conflicts occur outside the region, CIPS notes that they affect freight routes, shipping costs, energy markets, and supplier availability, indirectly impacting South African businesses.
New Risks and Price Pressure
The survey also revealed that cybersecurity has become an increasingly significant issue, surpassing logistics disruptions as one of the top three risks expected to affect supply chains over the next 12 months. Procurement specialists warn that cyberattacks targeting suppliers, logistics operators, or critical infrastructure can quickly disrupt production schedules and delay deliveries.
Furthermore, the report points to persistent price pressure in several sectors. Procurement leaders forecast raw material price increases of over 10% in transportation and logistics, oil and mining, chemicals and pharmaceuticals, food and beverages, and sheet metal products. For South African businesses, this could translate into increased transport costs, higher prices for imported goods and manufacturing components, as well as rising food prices and increased costs for mining operations.
Resilience Building Strategies
Despite constant price pressure, organizations are increasingly prioritizing resilience over cost savings. Among the most common strategies employed by businesses to ensure supply continuity are supplier diversification, extending supplier contracts, and maintaining buffer stocks.
Expert Views on the Future of Trade
Paul Voss, CIPS Regional Managing Director in South Africa, noted that the survey results reflect the reality faced by procurement professionals in the region. He stated that although inflationary pressures in some areas have eased, the operating environment remains extremely unpredictable, and companies can no longer assume that global supply chains will simply revert to their previous state after a series of geopolitical crises. Voss added that procurement functions are transforming from a simple cost control tool into a strategic function.
He emphasized that for South African organizations, resilience is becoming a competitive advantage. This involves developing broader supplier networks, strengthening regional sourcing where appropriate, improving end-to-end supply chain transparency, and ensuring that procurement is viewed as a strategic function within the business. Voss also noted that companies investing in sustainable procurement practices will be better prepared to leverage the expansion of intra-African trade under the African Continental Free Trade Area, while more effectively managing future disruptions.
CIPS Global CEO Ben Farrell stated that the landscape of world trade is undergoing a fundamental transformation. He remarked: 'The tectonic plates of world trade are shifting. The world we knew is gone. Regionalization is growing, globalization is transforming, and those organizations that build resilient regional partnerships will be best positioned to thrive.'
The survey also showed that one-third of organizations are already feeling the impact of changing US tariff policies, and another 37% are closely monitoring developments, highlighting how uncertainty in trade policy continues to shape procurement decisions alongside geopolitical tensions. CIPS Chief Economist, Dr. John Glenn, cautioned that while business sentiment has slightly improved, the current level of anxiety remains historically high, indicating that the global economy continues to face significant geopolitical, cyber, and supply chain risks.
