Looking ahead There is little doubt that the economic climate in South Africa will remain constrained. Growth continues to be sluggish and is only expected to improve to 1% in 2024, while inflation is expected to remain high, dropping marginally from an average of 5.9% in 2023 to an expected average of 5% in 2024. Exacerbated by the ongoing power supply crisis, this pattern is unlikely to change in the short term. The global economy, in turn, continues to be characterised by a high level of uncertainty, with geopolitical conflicts affecting many financial indicators. Our diversified investment strategy enables us to buffer members against the worst volatility in the markets. However, members must appreciate that growth assets will always be vulnerable to shorter-term market impacts and changes in sentiment. Over the longer term, a wellconstructed growth portfolio is likely to outperform. It has always been our approach to look for the opportunities in challenges. We believe our strategy of extending mutuality to previously untapped market segments and territories is very appropriate in the current climate. In fact, we look forward to the next few years with much optimism and excitement! Thank you The past year was a significant one for PPS, positioning us for much future growth, and once again, I was uplifted by the commitment of our employees throughout yet another demanding year. Our core values of taking extreme ownership, of curiosity and openness to new learning and doing the right thing are firmly embedded in everything we do. While often operating under difficult conditions, our employees continue to deliver the high level of service we pride ourselves on. As importantly, our new organisational structure is fit-for-purpose and our teams are stronger than ever. It continues to be a privilege to lead and be part of a cohort of such talented and dedicated people. I thank all my colleagues for their hard work and determination, as well as for contributing to making 2023 a year during which we could continue to support and return value to our members. The contribution and input of our non-executive Board members continued to be invaluable. Both the chair of PPS Holdings Trust, Dr Sybil Seoka, and of PPS Insurance, Charles Erasmus, are valued sources of advice and support, as are the chairs of the various subsidiary boards and sub-committees. Finally, thank you to our members, who continue to trust us with their financial security. We take this trust and responsibility seriously and remain at your service, always. Izak Smit Group Executive Officer 3 April 2024 27 Leadership commentary
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