South Africa’s business climate worsens slightly in October

By bne IntelliNews November 6, 2013

Business climate in South Africa worsened slightly last month, as the Business Confidence Index (BCI), produced by the South African Chamber of Commerce and Industry (SACCI), fell to 91.1 points from 91.4 points in September. Compared to October 2012, the index was by 0.9 points lower. The BCI is significantly below its all-time high of 122.1 in December 2006, and is also below the average of 100 for the base year 2010. SACCI noted that the ongoing labour disputes and accompanying work stoppages, as well as the risks for South Africa’s sovereign ratings contributed to the economy not gaining pace despite improvement in some domestic and global economic indicators.

Four of the index’s 13 sub-indices improved in October as compared to September, three worsened and six were unchanged. On a y/y basis, 7 sub-indices made negative contributions to the BCI and 6 made positive contributions.

SACCI said that the business climate continues to be tainted by the threat of strikes while the political campaign for the 2014 general elections started. It concluded that unworkable policy stances and unattainable promises contribute to a wait-and-see approach and that the postponement of decisions after the general elections in 2014 will limit economic prospects and may contribute to missed opportunities or break in investor confidence.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more

South Africa receives another downgrade to junk

Fitch Ratings on April 7 downgraded South Africa to junk status following the removal of Pravin Gordhan as finance minister and the enusing political crisis. Fitch's downgrade to 'BB+' ... more

S&P downgrades South Africa's credit rating to junk after cabinet reshuffle

Standard & Poor’s ratings agency has cut South Africa's sovereign credit rating to 'BB+' from 'BBB-' and the long-term local currency rating to 'BBB-' from 'BBB', both with a negative ... more

Most Read

  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    3 days ago
  2. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    4 days ago
  3. Ukrainian farmers turn to Donbas veterans for protection from raiders
    4 days ago
  4. EU allows Gazprom to use an additional 40% of OPAL gas pipeline's capacity
    4 days ago
  5. KRUK REPORT: Saakashvili is stripped of Ukrainian citizenship as Poroshenko’s re-election campaign gets underway
    2 days ago
  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    3 days ago
  2. CHINA RISING: When sleeping giants meet
    18 days ago
  3. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    4 days ago
  4. Belarus’ retail king Euroopt goes on the road
    23 days ago
  5. STOLYPIN: Russia’s cyber-challenge cuts both ways
    26 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss