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Business across the globe is now showing interest in South Africa since the formation of the Government of National Unity (GNU) led by President Cyril Ramaphosa. This is according to the South African Chamber of Commerce and Industry (SACCI).
The SACCI reported on Tuesday, 10 December 2024, that business confidence in the country has improved and has gradually been gaining momentum since the formation of the GNU. According to the Business Confidence Index (BCI), business confidence improved from low level of 107.8 in May 2024 to 118.1 in November 2024 – a 10.3 index-point improvement. Over the year to November 2024, the BCI improved by 6.6 index points.
Alan Mukoki, the CEO of SACCI explained that; in the short term (month-to-month), between September 2024, October 2024, and November 2024, the BCI improved by 3.6 and 3.4 index points, respectively, after the dip of 1.2 index points in September. Only two of the fourteen sub-indices had a negative bearing on the BCI in October 2024, and despite the five sub-indices that turned slightly negative in November, the BCI still improved by 3.4 points in November. There was no sub-index that had a significant negative effect on the BCI in November.
“SACCI’s BCI increased by 6.6 index points year-on-year in November 2024 – the largest year-on-year improvement for a month since the Covid-19 restrictions were lifted in December 2022. More inward tourist numbers, higher precious metal prices, and increased new vehicle sales made the most notable positive impact on the BCI in November. Lower merchandise import volumes had the only noteworthy negative impact on the BCI.
SACCI noted with concern and disappointment the slow economic growth of 0.4% y/y for the first nine months of 2024, which reflects the perplexing situation the South African economy finds itself in. The strong upward momentum of business confidence, however, confirms the resolve and understanding by the private business sector to contribute and play its respective role to improve economic performance,” said Mukoki.
Mukoki said the private sector and public sector need to club together as that has the potential to drive up investor confidence in the country, grow the economy and create jobs.
