External operating
environment

 

Economic growth		Government policy and regulation		Infrastructure development and maintenance
Growth in SA's GDP remains constrained and business confidence retracted post Ramaphoria. We have a track record of outperforming through the cycle. We expect economic growth and consumer spend to be lackluster until policy and political certainty emerges post the national election in 2019. We are encouraged by the positive steps taken to clean up corruption. We remain confident into the medium-term.		The revised B-BBEE codes, the Preferential Procurement Policy Framework Act and Mining Charter make for a challenging operating environment on top of meagre economic activity. We are committed to working with government and authorities to effect change and re-energise a growth programme. We aim for sustainable value creation for all stakeholders.		Gross Fixed Capital Formation investment and maintenance have been limited, leaving the broad sector in dire straits. The presidential investment drive for USD100bn of new commitments, the award of the 5th window for renewable energy projects and the announced stimulus package are expected to revive this market segment. Bidvest is eager, willing and a dedicated investor in SA, well-positioned to augment initiated projects. Freight's continued investment in terminals is evidence of this.
Increase in outsourcing and bundled spend		Out-of-home services		Technology
The market dynamics that influence customers to outsource and consolidate spend remains strong as efficiencies and value are being sought. Bidvest offers a national, comprehensive solution in Services, Office & Print, Electrical. Alliances and synergies between the South African and Noonan facilities management activities are also being pursued.		Increasing out-of-home hygiene standards, growing hygiene awareness, urbanisation, a growing middle class and significant investment into the food, pharmaceutical and retail sectors are factors that drive demand for several services provided by Bidvest. This is also the focus for our offshore expansion.		Brings opportunity to enhance efficiency, improve service and reduce environmental impact. It also drives changed behaviours and needs, to which we respond accordingly. Our internally developed artificially intelligent IT internal audit robot, ALICE, is expected to drive considerable value in our combined assurance model.
Consumer spend		Employees
Depressed consumer confidence, limited real disposable income growth and high interest rates result in constrained discretionary consumer spend.		A decentralised, entrepreneurial culture empowers 130 877 people to put customers first.