South African Chamber of Commerce and Industry (SACCI) recorded that business confidence in South Africa has fallen during the month of September, it is still higher than pre-Covid-19 levels.
The business confidence index for September declined to 91.0 after registering the highest level so far this year of 97.0 in May. The 91.0 is still 0.2 points higher than what was recorded in March 2020 (89.9), at the beginning of the Covid-19 pandemic.
SA Chamber of Commerce and Industry President, Mtho Xulu says every time they conduct the business confidence survey, it seems like the country is experiencing further problems. He explained that the July unrest that took place in parts of KwaZulu Natal and Gauteng had a major impact on the confidence.
Xulu says that load shedding, which began last week, did not play a role in the recent figures but will have an impact on the levels of business confidence in the future. He adds that confidence in the markets is really impacted by electricity and water supply.
He says that confidence in the market cannot be sustained due to a constantly changing business environment. He says that eating a lockdown level but having to contend with load shedding and water supply causes the confidence levels to fluctuate.
“It becomes a problem if we are unable to connect recovery strategies in a seamless way so that business can predict the future and therefore maintain his confidence in South African economy” explained Xulu.
“You want to maintain business confidence because those who are not necessarily in business also benefit from high levels of investment and confidence because it creates jobs it drives innovation and those with the innovation is able to be rewarded in a stable economic environment. So it's important on both sides because it makes sure that the money keeps flowing into the economy but also gives certainty to those who are selling their labour to the economy” concluded Xulu.