Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 6

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 6
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 negatively impact
our business prospects. Similarly, in South Africa, protracted electricity rationing and planned blackouts, due to the government owned
power utility’s inability to meet electricity demand, have had, and could continue to have an adverse effect on our business, financial
condition and results of operations.

We are subject to fluctuations
in foreign exchange rates between the South African rand, our reporting currency, and currencies of other countries where we market our
solutions or source our raw components, for example the Euro, Thai baht, Singapore dollar, U. S. dollar and Polish zloty. Such fluctuations
may result in significant increases or decreases in our reported revenue and other results as expressed in South African rand, and in
the reported value of our assets, liabilities and cash flows - See “ Risks Relating to Our Operations in South Africa and Other
Emerging Markets”.

Trade barriers, including tariffs,
import and export restrictions, and evolving geopolitical trade policies in regions where we operate may disrupt supply chain logistics,
and affect the manufacturing of our core hardware, which could negatively impact our revenue growth and operating margins. In addition,
the results of the 2024 United States presidential and congressional elections have led to changes in economic conditions or economic
uncertainties in the United States and globally. As such, changes or uncertainties, including in international trade relations, legislation
and regulations (including those related to tariffs, taxation and importation), enforcement priorities, or economic and monetary policies,
could result in heightened diplomatic tensions or political and civil unrest, among other potential impacts, may have a material adverse
effect on the global economy as a whole and/or our business, or may require us to significantly modify one or more of our current business
practices.

The impact of these risks may
also have the effect of heightening many of the other risks described in this “ Risk Factors” section or otherwise directly
or indirectly impact our business in unpredictable ways.

Our inability to adapt
to rapid technological change in our industry and related industries could impair our ability to remain competitive and adversely affect
our results of operations.

The industry in which we operate,
and related industries, are characterized by rapid technological change, frequent introductions of new applications and evolving industry
standards. In addition to the telematics or fleet management industry, we are subject to changes in the automotive software and technology
industry with rapid technological advancement to mobile handsets, multi-functional driver terminals, on-board cameras, advanced driver-assistance
systems (“ ADAS”) and workflow