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Remgro Challenges Unfavorable South African business climate

Published September 27, 2023
9 months ago

Remgro, the investment holding conglomerate backed by Johann Rupert, has issued a stark warning regarding the escalating economic difficulties and social instability faced in South Africa, vowing to not stay idle during this turbulent period.

During the company's annual financial report for the year ending 30 June 2023, Remgro highlighted the adverse impacts of the business disruption on consumers, which risked escalating social instability owing to growing unemployment and poverty levels. "The current economic environment is troubling. The disruption in business operations directly impacts consumers and runs the risk of increased social instability due to the undoing of livelihoods and rise in poverty levels," the company stated.

The report also warned of a litany of economic obstacles such as consistently high levels of load-shedding, rampant inflation and interest rates, hikes in electricity prices, exchange rate volatility as well as the challenges posed by geopolitical tensions and rampant crime and corruption. According to Remgro, these structural barriers are rapidly eroding the confidence of both local and international investors.

The company's Chief Financial Officer, Neville Williams, has labeled the present conditions as one of the most challenging periods the business has faced during his three-decade-long tenure.

Despite the formidable challenges, Neville Williams expressed optimism and conveyed a proactive stance towards addressing these issues, "We are not going to sit on the sidelines. We are not going to lie down. These are big challenges, but these challenges can be solved," he asserted.

Williams disclosed that Remgro is already engaged in combating many of South Africa's problems through strategic implementations within its companies to mitigate the impact of load shedding and inefficient logistics among others.

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