CHAIRMAN’S STATEMENT Overview Contrary to expectations, 2022 proved to be as challenging as the previous two years. While global sentiment was relatively upbeat at the start of the year, reflected in very strong investment market performance in 2021, 2022 provided new and somewhat unexpected challenges. Global growth slowed due to new supply-chain challenges and an energy crisis. Increases in the cost of living affected countries worldwide, pushing inflation up almost universally. According to the Organisation of Economic Cooperation and Development (OECD), 18 of 38 OECD countries experienced double-digit inflation in 2022, while global growth halved to just above 3%. This was exacerbated by the sharp rise in food prices following Russia’s invasion of Ukraine in February 2022. The fact that this conflict remains active is creating a heightened level of uncertainty in the world. The sharp rises in short-term interest rates across the globe – in response to increasing inflation – impacted household budgets and investor sentiment across the globe. At home, inflation climbed throughout the year and ended on an average of 6.9% for the period. Unemployment also remained high, although it eased slightly off the unprecedented high of 34.9% in 2021 to an average of 32.9% for 2022. The most significant concern, nevertheless, remains that the unemployment rate for people in their early 20s stayed at a high of 66.5% throughout the year, materially impacting growth predictions and, in the short to medium term, creating fertile ground for civil unrest. Compounded by the impact of the chronic and worsening local power supply situation, growth will continue to be marginal at best. When offset against inflation, South Africa effectively finds itself in a period of constrained growth that seems unlikely to reverse soon, unless government can exercise strong leadership and implement the necessary growth policies. Yet, within this sobering context, PPS’s mutual model continued to provide a high level of stability in an otherwise unstable and unpredictable environment. In fact, it is as if the Group thrives when times are tough. From an operational point of view, all valid claims In challenging times, like 2022, we are constantly reminded of the strength and value of our mutual model as well as our founders’ powerful goals: to secure the lives and livelihoods of graduate professionals and their families. ” Dr Sybil Seoka Chairman: PPS Holdings Trust Board “ 16 Leadership commentary
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