CFSL - Annual report 2018

CHAIRMAN’S MESSAGE At group level, we have welcomed Mr. Fareed Jaunbocus to the Board, formerly of BDO, who brings a wealth of experience in the consultancy domain in Mauritius and Africa. Last year, we had announced that the Group would be considering whether to apply for a banking licence. I would like to report that after a thorough review, it has been decided not to pursue this avenue as the Board felt the Group could better serve its target market in its current profile. Looking at the wider backdrop in Mauritius, 50 years on from Independence, I see that there is a ‘feel good’ factor in the country, with construction booming, road infrastructure being developed, the tourism sector performing well and the economy moving closer to full employment. There are, however, some concerning elements such as the sugar sector, which is important for the socio-economic fabric for the nation, as well as pressure on the textile industry. We will be closely following new innovations in the country, and the National Payment Switch, for example, may offer new opportunities for our cards business. In terms of the global picture, there are challenges arising from the ‘America First’ policy being pursued by the current US administration, which may lead other trading blocs such as Asia and Europe to ‘work around’ this situation. The issues of social unrest and migration are also a concern in several regions of the world. Looking ahead In 2019, we are looking forward to relocating our head office to the Manhattan Building in Port Louis and we will continue to focus on our core business of consumer finance, leasing and factoring, and our team will have a strong focus on innovation. We will also look at ways to simplify our group structure to improve efficiency. When it comes to our regional ambitions, we will be reinforcing our FinTech capabilities in Mauritius and Kenya and increasing our leasing capacity. The way we will deliver our services is to be transformed over the next few years and I am looking forward to the journey. As regards Lavastone Properties, I am confident that it will chart a new course in its development as a standalone entity following its listing on the DEM supported by an experienced board and management team. I would like to take this opportunity to pay tribute to Mr Marcel Descroizilles, a fellow director and the chairman of our Risk Management and Audit Committee, who passed away on 28 July 2018. Marcel contributed immensely in these capacities and he is sorely missed. I would also like to thank you, our shareholders, for the trust that you have placed in us in steering the Group. My thanks also go to our valued customers for their loyalty, to employees for their commitment and to my fellow directors for their support. COLIN TAYLOR Chairman 10 CIM FINANCIAL SERVICES LTD ANNUAL REPORT 2018