Bidvest strikes a cautious note ahead of 2019 elections
Companies are adopting a wait-and-see approach to investment because of uncertainty in the lead-up to general elections
Bidvest Holdings, one of SA’s largest industrial firms with more than 130,000 employees around the world, looks unlikely to make significant growth investments before 2019’s elections, as its directors adopt a cautious stance ahead of the polls. Comments by Bidvest chair Lorato Phalatse, CEO Lindsay Ralphs and CFO Mark Steyn in the company’s latest annual report indicate that the lead-up to next year’s elections and the poor state of the economy could slow down President Cyril Ramaphosa’s drive to attract investments worth $100bn to SA over the next five years.
Their comments further suggest that the weak economic growth and the uncertainty associated with the elections could prompt companies to adopt a wait-and-see approach. Steyn said that while the low-growth environment in SA presents acquisition opportunities for Bidvest Holdings at attractive pricing, the period leading to the elections would dampen organic growth opportunities. “We will focus on improving market share t...
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