Climate change isn’t just about melting glaciers and rising sea levels—it’s hitting urban South Africans right where it hurts: in the economy!

Speaking on HOT Business with Jeremy Maggs and MoneyWeb, Dr Nomhle Ngwenya, a board member of the National Advisory Council on Innovation and an expert in climate risk, issued a stark warning: extreme weather is becoming more frequent and more damaging, and South Africa is not ready.

The economic toll is already evident. “Floods, droughts and failing infrastructure are increasingly common, and climate shocks are making our already-strained economy even more vulnerable,” said Dr. Nwenya. Consider April 2022, when floods in Durban shaved off 0.7% of our GDP.

From potholes and blocked drainage systems to disruptions in agriculture and transport, the cascading effect of climate change is infiltrating all sectors. The concern, says Dr. Nwenya, is that government planning does not yet fully integrate the financial risks of climate instability. Coordination between departments is weak, and there’s a gap between excellent policy frameworks and actual implementation.

While the private sector is starting to take climate risk seriously—integrating it into balance sheets and investment strategies—there’s still a lack of coordinated investment in key resilience tools like early warning systems and smart infrastructure upgrades.

Encouragingly, innovation may be part of the answer. With increasing interest in AI-driven early warning systems and national science plans underway, the groundwork is there. But more collaboration is needed—between private investors, policymakers, and communities. Empowering local knowledge, says Dr. Nwenya, could also play a pivotal role in building resilience where it’s needed most.

The bottom line? For the urban, affluent South African, climate change is no longer a distant issue. It’s a direct threat to financial security, food prices, insurance premiums, and property value. The time to act—on all fronts—is now.