Significant Rise in Business Confidence Index in South Africa
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Johannesburg, Dec 10 (NationPress) The business confidence in South Africa has seen a considerable boost since the inception of the Government of National Unity (GNU) in June 2024, according to a statement from the South African Chamber of Commerce and Industry (SACCI) released on Tuesday.
SACCI presented its Business Confidence Index (BCI) on Tuesday after conducting a survey among the business sector across multiple industries. The findings from this recent survey revealed that business confidence has improved on a monthly, yearly, and six-monthly basis. Following the elections in May 2024, which did not yield a clear victor, the GNU was formed by ten political parties.
SACCI mentioned, “The enhanced political representation within the national government has allowed businesses to have a more positive outlook on economic conditions. This optimistic view has positively influenced the business environment, fostering better sentiment and stability,” as reported by the Xinhua news agency.
According to the chamber, the BCI has shown a consistent rise since the GNU's establishment, climbing from a low of 107.8 in May 2024 to 118.1 in November 2024. Over the course of the year up to November 2024, the BCI experienced an increase of 6.6 points.
In November 2024, SACCI noted that the BCI increased by 6.6 index points compared to the previous year—the most significant year-on-year enhancement for a single month since the lifting of Covid-19 restrictions in December 2022. This improvement was largely attributed to rising tourist numbers, elevated prices of precious metals, and robust new vehicle sales.
Nevertheless, the survey also indicated that reduced volumes of merchandise imports were the only notable adverse factor affecting the BCI.
“SACCI expressed concern and disappointment over the sluggish economic growth rate of 0.4 percent year-on-year during the first nine months of 2024, highlighting the challenging circumstances confronting the South African economy,” the statement added. It emphasized that, despite these challenges, the significant increase in business confidence underscores the private sector's determination and commitment to enhancing economic performance.
Furthermore, the business chamber stressed the importance of improved public sector efficiency to support private sector initiatives. “A synergistic approach between the business community and the public sector could transform enhanced business confidence into stronger investor confidence, sustainable economic growth, and job creation,” it concluded.
