Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 5

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 5
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the innovation and integration opportunities in related industries or implements them in a more cost-effective manner, those competitors
may be able to provide more effective or less expensive solutions than ours, which may also negatively affect our ability to retain our
existing customers and drive margin expansion.

The effects of a pandemic
or widespread outbreak of an illness, the Russia-Ukraine conflict, conflict in the Middle East, political and economic uncertainty in
Mozambique, geopolitical tensions involving China and similar macroeconomic events, including financial distress caused by recent or potential
bank failures, global supply chain challenges, foreign currency fluctuations, elevated inflation and interest rates, shifting trade policies
and monetary policy changes, could have a material adverse effect on our business, financial condition and results of operations.

Our growth strategy involves
the further expansion of our operations and customer base internationally. Any extended period of global and economic disruption resulting
from a pandemic, the ongoing Russia-Ukraine conflict, conflict in the Middle East, other geopolitical tension and macroeconomic events
such as financial institution failures, create increased uncertainty and strain on the global economy and could have a material adverse
effect on our business, financial condition and results of operations.

Since the October 2024 elections,
Mozambique has grappled with political and economic uncertainty. The ongoing instability has disrupted our customers’ normal operations
in Mozambique, prompting the temporary suspension of billing for a period of time in order to support our customers during this crisis.
Additionally, the depreciation of the Mozambican metical against the South African rand has further intensified the decline in reported
revenue. The continued political and economic instability has made the operating environment challenging and introduced significant uncertainty
regarding the near- to medium-term outlook for Mozambique. The ongoing uncertainty could continue to have an adverse effect on our business
in Mozambique.

Geopolitical tensions, including
the ongoing conflict between Russia and Ukraine and conflict in the Middle East, may adversely impact the economies of neighboring countries,
such as Poland, in which we have a presence. Any increase in tensions between China and Taiwan, or other countries, including threats
of military actions or escalation of military activities, could adversely affect our supply chain partners’ operations in these
areas - See “ We depend on certain key suppliers and vendors as part of our hardware manufacturing process. An interruption
in the supply chain could impair our product availability, adversely affecting distribution and growth.”

The evolving energy crisis in
Europe, could continue to significantly disrupt supply chains and cause uncertainty in the global economy, which could