Invicta battles de-industrialisation

Industrial group Invicta recently announced a 5 per cent increase in its annual dividend, despite facing a challenging year with a slight dip in profit. In an exclusive interview with CNBC Africa, CEO Steven Joffe shared insights into the company's performance and the current economic landscape. Joffe reflected on the tough year, attributing global high inflation and cash preservation strategies among consumers to the market's challenging environment. In South Africa, where Invicta operates, the company faced additional hurdles due to ongoing economic challenges. Joffe highlighted the impact of uncertain economic conditions, high interest rates, and cautious consumer behavior on the company's operations. Despite these challenges, Joffe remains optimistic about future opportunities for growth. He emphasized the importance of government policies that support industrial growth, infrastructure development, and job creation. Joffe also discussed the company's presence in various international markets, including the US, UK, China, and Zambia, noting promising opportunities for expansion. In response to geopolitical tensions and trade tariffs, Invicta has strategically diversified its production base to mitigate risks. The company has invested in a factory in Japan to avoid potential tariff impacts on its US operations. Joffe highlighted the need for proactive measures to navigate the complex geopolitical landscape and maintain operational resilience. The interview also touched on the recent national election in South Africa and its implications for the business environment. Joffe acknowledged the challenges posed by de-industrialization and expressed hope for government policies that support economic growth. While acknowledging the current difficulties facing South Africa, Joffe emphasized the country's potential for significant growth opportunities in key sectors such as mining, manufacturing, and construction. Looking ahead, Joffe outlined key priorities for driving growth, including infrastructure development, regulatory reforms, and investment in critical sectors. Despite the challenges, Joffe remains confident in Invicta's ability to navigate the evolving economic landscape and seize emerging opportunities for expansion and growth.