Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 47

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 47
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 FSPs are subject to a variety of regulations, including the Financial Advisory and Intermediary
Services Act, No. 37 of 2002. We may from time to time face challenges resulting from changes in applicable law and regulations in South
Africa, or changes in approach to oversight of our business from insurance or other regulators in South Africa.

Additionally, we have to comply
with the South African anti-corruption law, the Prevention and Combating of Corrupt Activities Act, No. 12 of 2004, as amended (“ PRECCA”).
This law prohibits public and private bribery and criminalizes various categories of corrupt activities. PRECCA also contains a reporting
obligation to authorities of known or suspected corrupt activities which is triggered when the value of any known or suspected acts of
corruption exceeds ZAR 100,000. Failure to report said corrupt activities is a criminal offense under PRECCA and imposes significant penalties
on those convicted of corrupt activities. Regulation 43 of the South African Companies Act No. 71 of 2008 (“ South African Companies
Act”) also contains a number of anti-corruption compliance obligations that we must adhere to.

Although we have policies and
procedures in place to comply with financial crime regulation, these policies and procedures may not prevent all situations of money laundering,
bribery, fraud or corruption, including actions by our employees, for which we might be held responsible. Any such event may have severe
consequences, including sanctions, fines and reputational consequences, which could have a material adverse effect on our business, financial
condition, results of operations and prospects.

Operating in emerging markets,
such as South Africa, subjects us to greater political, economic and market risks than those we would face if we only operated in more
developed markets, which could increase our operating costs.

For the financial year ended
February 28, 2025, 74% (FY 2024: 75%) of our revenue was derived from South Africa. Emerging markets, including South Africa, are subject
to greater risks than more developed markets. The political, economic and market conditions in many emerging markets present risks that
could make it more difficult to operate our business successfully. These risks include:

  the strength of emerging market economies;  

  fluctuations in interest rates;  

  political and economic instability, including higher rates  

  high levels of crime and unemployment;  

  inconsistent supply or failure of infrastructure;  

  higher levels of corruption, including bribery of public  

  loss