CHAIRMAN’S STATEMENT Overview It is our ethos of mutuality that has enabled us to deliver exceptional value to our members throughout our long history and to contribute in a meaningful way to the greater good. Now, as we have done many times before, we are evolving in response to changes in the financial services landscape and the changing needs of our members. During 2023, we took bold steps to further position the PPS Group so that it can deliver on its vision and ethos more holistically, offer even greater value for our members and extend the benefits of our solutions and services portfolio into new markets and territories. We have made a few changes to our organisational structure to ensure that it remains fit-for-purpose, enabling us to deliver maximum value as an integrated financial services provider and to introduce the benefits of mutuality to other segments and territories. The macroeconomic environment Focusing on the 2023 financial year, low growth continued to hamper economies worldwide, not only in South Africa. However, South Africa has unique challenges, where the unreliable power supply situation has a detrimental socio-economic effect. The weakening rand and above-inflation fuel and food price increases have hit consumers hard, digging deep into disposable income. Consequently, many South Africans have struggled to maintain their insurance and medical aid cover. Although our graduate professional members are more financially resilient than the rest of the population, these pressures have impacted their experience, as well. Although the unemployment rate declined marginally from the previous year, it remains intractably high. Of most significant concern to us is the high unemployment rate among young people in general and among recent graduates in particular. The PPS Student Confidence Index of 2023 revealed that 53% of recent graduates indicated that they were not confident of finding work within the next three to six months. The knock-on effect is that new graduates and young professionals are tempted to pursue opportunities overseas, where they feel they will achieve a better quality of life and a more secure future for themselves and their families. Together with the increase in the Every financial year brings new challenges and new opportunities. 2023 was no exception. We met it with the resilience and vision that PPS is known for. Given the strength and value of our mutual model, we are especially excited about the opportunities. It resonates with our founders’ simple but powerful goals: to secure the lives and livelihoods of graduate professionals and their families. It is a privilege to be part of fulfilling that vision. Dr Sybil Seoka Chairman: PPS Holdings Trust Board “ “ 14 Leadership commentary
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