Operating environment

Across Southern and East Africa, CA&S operates within markets shaped by distinct macro-economic trends that influence consumer behaviour, retail development, and growth potential.

In Southern Africa, our core markets – Botswana, Namibia, Lesotho, Eswatini, South Africa, Zimbabwe and Zambia – continue to show resilience despite muted GDP growth, inflationary pressure, and constrained consumer spending. Botswana, whose economy remains heavily reliant on the diamond sector, has recently experienced a contraction, though it retains overall macro-economic stability. Namibia also remains relatively steady, while South Africa's recovery is gradual, supported by reforms and infrastructure investment. Zimbabwe and, to a lesser extent, Zambia continue to face currency and cost-of-living pressures that erode purchasing power.

Our expansion into East Africa positions the group in one of the continent's most dynamic economic regions. Kenya, Tanzania and Uganda benefit from youthful populations, rapid urbanisation and rising consumer markets with strong medium-term growth forecasts despite global inflation and geopolitical headwinds. As retail ecosystems mature, the region offers scale advantages and new avenues for multi-market growth aligned to our core route-to-market strengths. These trends create a compelling counterbalance to the slower structural trajectory of Southern Africa.

Together, these conditions provide CA&S with a balanced and scalable regional footprint: a steady but capacity-constrained Southern African base complemented by the momentum and scale of fast-growing East Africa. This combination enhances our ability to drive sustainable growth, diversify earnings, and create long-term value for our clients and shareholders across emerging African markets.

Further details on the macroeconomic operating environment across our regions can be found in the Country review section on pages 49 to 59.