Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 48

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 48
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 due to civil strife, acts of war or terrorism, guerrilla  

  a lack of well-developed legal systems which could make it                     

  potential adverse changes in laws and regulatory practices,                                                                              

  restrictions on the right to convert or repatriate currency  

  introduction of or changes to indigenization and empowerment  
  programs;                                                     
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  logistical and communications challenges;  

  difficulties in staffing and managing operations and ensuring  

  greater risk of uncollectible accounts and longer collection  

  future downgrades of the debt ratings of the countries in                                                                                       

If we are unable to effectively manage
these risks, it could have a material adverse effect on our business, financial condition and results of operations.

We have operations in other African
and Asian countries, and governments in Africa and Asia have in the past intervened in the economies of their respective countries and
occasionally made significant changes in policy and regulations. Governmental actions have often involved, among other measures, nationalizations
and expropriations, price controls, currency devaluations, mandatory increases on wages and employee benefits, capital controls, limits
on imports and arbitrary interference with private ownership of contract rights. Our business, financial condition and results of operations
may be adversely affected by changes in government policies or regulations, including such factors as exchange rate and exchange control
policies, inflation control policies, price control policies, consumer protection policies, import duties and restrictions, liquidity
of domestic capital and lending markets, electricity rationing, tax policies, including tax increases and retroactive tax claims, and
other political, diplomatic, social and economic developments in or affecting the countries in which we operate. In the future, the level
of intervention by African and Asian governments may continue to increase. It is difficult to predict the future political, economic and
market environment in these countries, and these or other measures could have a material adverse effect on the economy of the countries
in which we operate and, consequently, could have a material adverse effect on our business, financial condition and results of operations.

We face the risk of disruption
from labor disputes and changes to labor laws, which could result in significant additional operating costs or alter our relationship
with our employees.

We are required to comply with
extensive labor regulations in each of the countries in which we have employees, including with respect to wages, social security benefits
and termination payments. In particular, South African laws relating to labor regulate work time, provide for mandatory