How Alexander Forbes is dealing with instability in Africa

Alexander Forbes, a leading financial services provider in Africa, recently reported a 20 per cent decline in its headline earnings per share to 21.7 cents per share. Despite facing challenges in the political and economic landscape of Africa, the company remains resilient under the leadership of CEO Andrew Darfoor. In a CNBC Africa interview, Darfoor addressed the impact of political instability and commodity prices on the company's performance. He highlighted that while the current environment is challenging, Alexander Forbes is strategically managing through the cycle, focusing on long-term growth and making significant progress in key areas of the business. Darfoor emphasized that the company's approach involves making decisions that will benefit them in the next five, 10, 15, or even 20 years, rather than just focusing on short-term gains. Despite the turbulent economic conditions in South Africa, Alexander Forbes has shown remarkable growth in various sectors, with a 16% increase in retirement, 31% in group risk, 11% in short-term insurance, and 11% in health. These positive figures reflect the company's commitment to driving performance and achieving success amidst challenges. While addressing concerns about the cost of instability, Darfoor reiterated that Alexander Forbes is a 'self-help story,' indicating that they are taking proactive steps to strengthen the business and overcome obstacles. He expressed confidence in the company's ability to navigate through the current instability, stating that they have more work to do but are on the right path towards improvement.