Global supply chain concerns may be down slightly from record highs, but businesses in Southern Africa cannot afford to become complacent.
According to the latest Chartered Institute of Procurement and Supply (CIPS) Pulse Survey for the second quarter of 2026, procurement and supply chain professionals around the world continue to report unusually high levels of concern over geopolitical instability, supply disruptions and increasing cyber risks, reinforcing the need for organizations to build more resilient supply chains.
While short-term concern over supply chain disruption has declined from its Q1 peak, the survey found that both short-term and long-term concern remain at one of the highest levels ever recorded by CIPS, suggesting that businesses are adapting to the “new normal” of increased global uncertainty rather than a return to stability.
For Southern Africa, these events have special significance.
The region is heavily dependent on global shipping networks, imported fuels, industrial equipment, chemicals, pharmaceuticals and manufacturing inputs, while many of its largest industries, including mining, agriculture, automotive manufacturing and retail, rely on reliable international supply chains to remain competitive.
The survey found that conflict in the Middle East remains the biggest driver of supply chain concerns globally, cited by 75% of procurement professionals, followed by the broader geopolitical environment (67%) and the ongoing war in Ukraine (33%).
Despite being geographically distant, these conflicts continue to impact freight routes, shipping costs, energy markets and supplier availability, ultimately impacting Southern African organisations.
The report also highlights the growing concern over cyber security. Cyber attacks have overtaken logistics disruption as one of the three biggest risks facing procurement professionals over the next 12 months, with concerns about cyber threats in supply chains significantly increased compared to the previous quarter.
The findings show that procurement professionals are increasingly recognizing that cyber incidents impacting suppliers, logistics providers or critical infrastructure can rapidly become operational disruptions capable of halting production and delaying deliveries.
Another finding that resonates with Southern African organizations is the continued expectation of rising costs across several key categories.
Procurement leaders have identified shipping and logistics, petroleum and mining, chemicals and pharmaceuticals, food and beverages, and fabricated metal products as sectors where input prices are likely to increase by more than 10%.
For South African businesses, these increases have the potential to filter through to higher transport costs, imported goods, manufacturing inputs, food prices and mining operations.
The survey also found that organizations are prioritizing flexibility over cost alone, with supplier diversification, extension of supplier contracts and holding excess inventory ranking as the three most important strategies to protect continuity of supply.
Paul Vos, regional managing director of CIPS Southern Africa, says: “The survey reflects exactly what many procurement professionals in Southern Africa are experiencing. Although inflationary pressures have eased in some regions, the operating environment remains highly unpredictable. Businesses can no longer assume that global supply chains will return to the way they were before the persistent geopolitical crises.”
“For South African organisations, flexibility is increasingly becoming a competitive advantage. This means developing wider supplier networks, strengthening regional sourcing where appropriate, improving visibility into the supply chain and ensuring procurement is reflected as a strategic function within the business rather than simply a cost-control exercise.”
“As trade continues to expand across Africa through initiatives such as the African Continental Free Trade Area, organizations that invest now in more flexible and agile procurement practices will be better positioned to manage disruption, control costs and capitalize on future growth opportunities.”
Ben Farrell MBE, Global CEO of CIPS, says the world is witnessing fundamental changes in global trade.
“The tectonic plates of global trade are shifting. The world as we knew it is gone. Regionalization is increasing, globalization is being reshaped, and organizations that form flexible regional partnerships will be best placed to thrive.”
The survey also found that one-third of organizations are already experiencing the effects of evolving US tariff policy, while another 37% are actively monitoring developments, indicating that trade policy uncertainty along with geopolitical conflict is influencing purchasing decisions.
CIPS Chief Economist Dr John Glenn warned that despite some softening in sentiment, current levels of anxiety remain historically high and indicate the economy is still exposed to geopolitical shocks, cyber risks and persistent uncertainty.