Business confidence in South Africa dipped in April compared with the previous month, but remained in positive territory as the sector looks to the country’s leadership to restore the economy to its full potential, a survey showed on Wednesday.
The South African Chamber of Commerce and Industry’s (SACCI) business confidence index eased slightly to 96.0 in April from 97.6 in March. But the index has held above 95 for six months and improved from an average of 95.5 in the first four months of 2017 to 98.0 for the same period in 2018.
The largest positive annual contributions to the business climate in April 2018 came from lower inflation, higher new vehicle sales, and the increased real value of building plans approved.
Lower real merchandise exports and imports, and ongoing high real financing costs had the largest negative effects on the business climate compared to a year earlier.
“South Africa’s leadership has a mammoth task to restore the South African economy to its full potential that was rudely interrupted over the last number of years,” SACCI said, alluding to stuttering growth under the leadership of former president Jacob Zuma, who stepped down in February.
“The restoration process of the economy, starting by addressing maladministration and corruption, has been incisive and the market and economic indicators are reflecting those sensitivities.”
SACCI said investor confidence was key to restoring the potential of the South African economy.
“The present positive business mood is still in the process of repositioning with business confidence reflecting patience and anticipation,” it said.
“Increased certainty and increased fixed investment should provide the economy with the base for growth. However, political stability, and law and order are essential ingredients and preconditions for economic advances.” (via African News Agency)