South Africa’s business climate deteriorated in May to its weakest level in 16 years, reflecting the domestic economic slowdown and electricity shortages, lack of policy direction and experimenting with unviable policy options, and a still feeble recovery of the world economy, the South African Chamber of Commerce and Industry (SACCI) said in a statement.
The Business Confidence Index (BCI), produced by SACCI, lost 3.0 points m/m to 86.9 in May, its lowest level since September 1999. It was by 2.0 points below its year-ago level and by 3.1 points below the average for 2014. The index averaged 89.6 in the first five months, compared to 91.3 in the same period last year.
South Africa is in dire need of foreign capital for financing struggling public sector institutions, infrastructure and compliment overall local fixed investment, but the business and investor climate are not convincing, SACCI said. A possible outflow of capital may become a harsh setback for longer-term economic performance, it warned.
| Impact of the BCI sub-indices on the overall BCI | May-15, m/m | April-15, m/m | May-15, y/y | April-15, y/y |
| Physical activity sub-indices | ||||
| Municipal Services | + | o | - | - |
| Manufacturing | + | + | + | - |
| Exports | - | + | - | + |
| Imports | - | + | + | + |
| Vehicle sales | - | - | - | - |
| Retail sales | - | + | - | - |
| Construction - buildings | + | o | + | - |
| Financial sub-indices | ||||
| Inflation | o | + | - | o |
| Share prices | o | + | - | - |
| Real private sector borrowing | + | + | - | o |
| Real financing cost | o | - | o | o |
| Precious metal prices | o | o | - | - |
| Rand exchange rate | - | + | - | o |
| Source: SACCI |
Related Articles
South Africa central bank deprioritises retail CBDC as national payment reforms take priority
The South African Reserve Bank (SARB) has issued a new position paper assessing the feasibility of a retail central bank digital currency, concluding that South Africa does not currently have a ... more
Uganda’s Gogo Electric secures $1mn from EU-backed ElectriFI to scale battery-swap e-mobility network
Ugandan electric mobility startup Gogo Electric has secured $1mn in funding from the EU-funded Electrification Financing Initiative (ElectriFI), the company announced this week, marking a significant ... more
Cell C debuts on Johannesburg Stock Exchange with $490mn valuation amid restructuring
Cell C Holdings (JSE:CCD) listed on the Johannesburg Stock Exchange this week, marking a significant step in the company’s multi-year restructuring programme. The shares closed at ZAR26.50 each, ... more
Most Read
-
The birth of a Kazakh banking empire: ATF Bank
3 years ago
-
India’s smart metering push gains momentum
4 months ago
-
The birth of a Kazakh banking empire: ATF Bank
3 years ago