SA needs structural reforms to bolster business confidence
Business confidence continued its upward trend in November, but poor economic performance remains a concern. The business climate is still plagued by poor economic performance, recessionary conditions and high unemployment and fiscal unsustainability, says the South African Chamber of Commerce and Industry (SACCI).
The index is a mere 0.7 points higher than the 92.7 points recorded in November 2019.
Economic reforms are needed to bolster business confidence in the future, according to SACCI.
SACCI on Wednesday released the business confidence index for November, which is at 93.4 points. The index has climbed 23.3 points since the low of 70.1 points record in May 2020, amid harsher lockdown restrictions. The index is a mere 0.7 points higher than the 92.7 points recorded in November 2019.
According to SACCI the business climate is still "plagued by poor economic performance, recessionary conditions, high unemployment and fiscal unsustainability".
SACCI noted that the medium-term recovery in the business climate needs to be strengthened.
"It must build on policy decisions that restore foreign and local investor confidence, economic growth and employment creation that takes the country on an upward trajectory," SACCI said.
"It has become clear that structural reform is necessary in South Africa," SACCI added.
SACCI sees merchandise exports and commodity prices benefiting business conditions in 2021. SA's tourism sector will also be critical in attracting foreign exchange earnings, it said.
"The weaker rand exchange rate, loss of disposable household income and the high import propensity of durable spending, remain medium term challenging areas."
The low inflation and low interest rates also contributed to a positive medium-term business climate, it said.
Comments
Research Reports
Projects
Latest News
Showroom
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
