Remgro chair Johann Rupert has backed the group’s 70 years’ experience of doing business in SA to help it overcome the numerous headwinds facing Africa’s most industrialised economy.
Rupert told shareholders in a letter published in the company’s annual report that inflationary pressures in SA and around the world were putting a strain on consumers.
He flagged “stubborn” inflation that has forced central banks around the world to continue to hike rates and keep them at record levels, the ongoing Russia-Ukraine War, SA’s sluggish economy, policy uncertainty, and the energy crisis as some of the constraints to doing business in the country.
However, he said Remgro was experienced in trading during turbulent times.
“The long-term success of any business lies in its ability to adapt and seize the opportunities that present themselves in an ever-changing environment. While today’s challenges may differ from those we’ve faced in the past, Remgro continues to adapt to an evolving society; and we utilise the many insights learnt from doing business in the SA context for over seven decades,” Rupert said.
“Our success lies in our unwavering commitment to being the trusted investment company of choice that consistently creates sustainable long-term stakeholder value.”
Remgro, valued at R75.2bn on the JSE, has been reconfiguring its portfolio in recent years and 70% of its investments now are unlisted.
Most recently, a Remgro-led consortium bought Mediclinic and took the healthcare group private. At the time of the conclusion of the transaction earlier this year, Remgro already owned 46% of Mediclinic and has since spent further £221m in the company, taking its stake to 50%, with the other half held by its partner Mediterranean Shipping Company.
Another significant transaction for Remgro in the past financial year is the merger of the Heineken Southern African business, including an interest in Namibia Breweries, with the bulk of Distell.
Remgro CEO Jannie Durand said in the annual report the prevailing business environment was the most difficult he has experienced in his career.
Durand also reiterated his concerns about social instability in SA, noting that “... the increasing risk of social unrest in SA is troubling. This was further amplified by the recent taxi industry strike in the Western Cape, which turned violent and resulted in the loss of lives. The importance of urgently dealing with both the sociopolitical and economic issues facing our country is paramount”, he said.
“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. With low levels of expected economic growth — combined with the breakdown of state infrastructure relating to energy, transport and logistics, and the slow pace of economic reforms to date — the urgency to address these issues cannot be overstated.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.