Remgro flags business risks posed by Eskom power outages
The investment firm also says political instability ahead of the elections is a threat in 2019
Remgro, the Stellenbosch-based investment company controlled by businessman Johann Rupert, has cited power shortages, political instability in the run-up to the national elections, and low business confidence among its biggest risks. The company, established in the 1940s by Anton Rupert, is one of several firms bracing for tough trading conditions in 2019 amid sluggish economic growth that has hit several sectors as well as consumers. Remgro has investments in banking, health care, consumer products, insurance, industrial, infrastructure and media sectors. “Political instability, especially in the lead-up to the national election on May 8 2019, can be expected. The financial crisis faced by state-owned companies, like Eskom, is of great concern to all of Remgro’s investments,” Remgro CEO Jannie Durand said on Tuesday.
He said most of the company’s investments were resilient in the face of these adverse circumstances, largely thanks to their strong balance sheets. “The majority...