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AbstractThere is a growing need to understand how climate change impacts not only on people's livelihoods but also on the level and cost of local government infrastructure required to provide basic commodities such as water and energy. In South Africa, few studies have examined the impact of climate change on operations of local governments. This paper examines the impact of rainfall variability on municipalities' water and energy demand. A non‐linear relationship between water and energy demand and rainfall variability was found. The results suggest that, by influencing the operations and budgets of local governments, climate change is a real threat to local governments. The local governments need to be proactively involved in the efforts to adapt to and mitigate climate change. This is particularly important in developing countries where the impact of climate change is more severe than in developed countries, yet adaptation and mitigation capabilities in these countries are weak.

Research efforts using system dynamics to understand and evaluate societal and policy‐related problems in Southern Africa are becoming essential. This paper undertook a systematic review to examine the extent of utilization of system dynamics in Southern Africa between 2003 and 2014. The results showed that system dynamics has been used, or referred to, in the academic literature pertaining to the themes of environment, public policy and resources. Nevertheless, focuses remain limited in its application across various industries, particularly relating to stakeholder engagement and strategy. However, some analysis of the non‐academic literature suggests that commercial practice of system dynamics has a different trend, where it is mainly used for strategic and tactical projects, mostly for industry clients. Thus, the current research outputs do not necessarily reflect the industry needs. This review is then useful to facilitate further discussions on practical applications of system dynamics through the South Africa System Dynamics Chapter. Copyright © 2016 John Wiley & Sons, Ltd.