Cars4Africa Ltd.

Cars4Africa operates car rental agencies all over Africa and has a 31 December year-end. Cars4Africa is the service provider of several multinational organisations operating across the African continent. Cars4Africa has developed a client list of its key clients and is actively seeking to expand and build upon these business relationships.

Cars4Africa was sued by one of its clients after the client was involved in an accident on 1 August 2017 in a vehicle rented from the Cars4Africa fleet. The client sustained multiple injuries. He claims that the brakes of the car failed and that this caused the accident. The client has sued Cars4Africa for damages, arising from negligence for renting out a vehicle that had not been properly serviced and maintained. The matter was discussed with the legal representatives of Cars4Africa who believe that although the vehicle was not properly maintained (as evidenced by the vehicle’s maintenance records) it is unlikely that the company will be required to pay for the damages. However, if Cars4Africa is required to pay damages, the legal advisors estimate that it would cost no more than R1 500 000. The probability of this occurring is estimated to be only 15%. This estimate remained unchanged at 31 December 2017.

 Source: SAICA. 2021