Tuesday, 08 August 2017 11:30

Business Confidence Endure

SACCI’s Business Confidence Index recorded the highest level since February 2017 and continues regaining lost ground after replacing the Minister of Finance at the end of March 2017. Business confidence, although still relatively low, remains sensitive to political and uncertain economic policy positions.

At 95.3 in July 2017, the BCI was 0.7 index point below last year’s July level and 0.4 index point up on last month. Certainty about workable economic approaches could contribute to improve business confidence and especially investor confidence.


Deliberations on economic policy continue and some rogue statements by political role players on policy positions adversely affect investor and business confidence. These utterance, although popular may not support a vibrant and prosperous economy. It creates expectations that a stalling economy will not be able to fulfil. Battling the recession should be at the forefront and noting the view of the credit rating agencies.

Locally there are indications that growth in the 2nd Quarter may be slightly positive. The inflation rate is slowing down. The exchange rate is unstable but weak against the euro, the pound and the yen. The Reserve Bank unexpectedly decided to lower the repo rate by 0.25 percentage points, implying that prime lenders pay 0.25 percentage points less interest. All developments contributing to an improved backdrop.

It is evident that South Africa could become more prosperous for all. There will be affluent and lower income groups that must propel this economy from junk status and the recession to make the country attractive. Perhaps the present more stable business confidence could inspire investor confidence in South Africa – here and abroad.

For a full background to this month’s SACCI BCI click here
For more information, contact:
Alan Mukoki SACCI CEO 011 446 3800
Richard Downing SACCI Economist 082 822 5566