Zak Calisto's Karooooo Faces Major Write-down After Political Unrest In Mozambique

Karooooo Limited, the Singapore-based mobility platform led by South African tech mogul Zak Calisto, is preparing to record a goodwill impairment for its Mozambique operations in the fiscal year ending February 2025.

The company was forced to remove several thousand vehicles from its platform after they were burned and suspended billing in Mozambique for two months starting mid-November due to escalating political unrest.

The country has been in turmoil since its disputed Oct. 9 elections, with months of tension leading to violent clashes. The Decide Platform, a local group tracking the violence, estimates that more than 350 people have died. Although protests against President Daniel Chapo, who was declared the winner, have subsided in recent weeks, sporadic unrest continues.

The instability has taken a toll on Mozambiques economy, costing the country an estimated 3 percent of its GDP. Several businesses have also been affected, including logistics giant Grindrod, aluminum producer South32, and graphite miner Syrah Resources, which supplies Tesla and recently declared force majeure.

Zak Calisto, Karooooos founder and chief executive, acknowledged the toll on the companys operations in an interview. Theres been a serious impact on our business and our customers businesses in Mozambique. Weve had to take a few thousand vehicles off our platform because they were burned down. Warehouses arent operating, and factories arent working.