Alexander Forbes CEO on losing a key Botswana client

Alexander Forbes, a leading financial services provider, recently reported a 20 per cent decline in its headline earnings per share, dropping to 21.7 cents per share. Despite this setback, the company declared an interim dividend of 18 cents, reflecting a 6 per cent increase. These financial results come on the heels of a significant challenge – the loss of a key client in Botswana. Andrew Darfoor, the CEO of Alexander Forbes, joined CNBC Africa to discuss the impact of this loss and the strategies in place to mitigate the decline in operating income. Darfoor emphasized that while challenges in Botswana have been notable, there are promising developments on the horizon. Regarding the performance of the company's emerging markets businesses, Darfoor highlighted that Namibia and Botswana collectively account for about 80% of this segment. In Namibia, the company experienced positive growth, with an 8% increase in assets, profits, margins, and revenue. However, the situation in Botswana has been more complex due to the loss of a key client the previous year. Darfoor explained that it has taken time for new initiatives to gain traction and compensate for the lost business. He expressed confidence in the second half of the year, anticipating a considerable uptick in revenue. Despite the temporary setback, Alexander Forbes remains steadfast in its commitment to a pan-African strategy and aims for the African market to play a more significant role within the group in the future. Amidst the challenges faced by the company, Darfoor articulated a clear vision for the way forward. By focusing on innovative initiatives and leveraging opportunities for growth, Alexander Forbes aims to strengthen its position in the market. The CEO underscored the importance of resilience and adaptability in navigating turbulent times, emphasizing the company's determination to overcome obstacles and drive sustainable growth. In response to concerns about the impact of the loss of the key client in Botswana, Darfoor reassured stakeholders that the company is actively implementing strategies to address the decline in operating income. He highlighted the progress made in diversifying revenue streams and the positive trajectory observed in the latter part of the year. Darfoor's strategic approach and forward-looking perspective signal a commitment to overcoming challenges and positioning Alexander Forbes for long-term success in the dynamic financial services landscape. As Alexander Forbes continues to navigate the evolving business environment, stakeholders are closely monitoring the company's performance and strategic initiatives. The resilience and strategic foresight demonstrated by Darfoor underscore the company's commitment to driving growth and value creation despite prevailing challenges. With a focus on innovation, expansion, and diversification, Alexander Forbes is poised to capitalize on emerging opportunities and reinforce its position as a leading player in the financial services industry.