The international insurance company, Allianz Global Corporate & Specialty (AGCS), warned in a report of increasing riots and strikes as a result of popular anger over the high cost of living, political instability, and growing inequality in South Africa.
The report called on companies in the country to be wary of the increased risk of civil unrest that could lead to physical damage to property.
The risks for South Africa are greater than just unrest. A country with a high level of polarized politics could see retaliatory counter-movements exacerbate the conflict, says AGCS Regional Practice Group Leader, Etienne Sheret.
The report adds that although it is difficult to predict specific incidents of civil unrest, the outcome of the corruption trial of former President Jacob Zuma could be a flashpoint for conflicts.
This year, inflation has reached record levels in South Africa, leaving people struggling to make ends meet, while a drop in the value of the African rand is causing international fuel and petrol products to rise this week.
Also, among the most important reasons that the country may enter into a conflict crisis is the lack of confidence in the government and institutions, and climate and environmental concerns.