Embargo: 11:30 – 12 February 2025
Stable Improved Business Confidence
The positive assessment of economic prospects by business still supports an improved business climate. The SACCI BCI has since the formation of the inclusive administration in June 2024, increased gradually from a low level of 107.8 in May 2024 (the month of elections), to 121.0 in December 2024 and on to measure 120.0 in January 2025. The 120.0 for January 2025 is a 12.2 index point surge since May 2024 and a 7.7 index point increase on January 2024. The BCI averaged 112.6 in 2024 compared to an average of 109.6 in 2023 – a 3 index point improvement.
Over the short-term from November 2024, December 2024 and January 2025 the SACCI BCI improved by 1.9 index point. Only lower merchandise export volumes of the fourteen sub-indices had a notable negative short-term month-to-month effect on the BCI in January 2025. Despite the four sub-indices that were negative in January 2025, the BCI lost a negligible one index point in January 2025. Greater volumes of imported merchandise, more new vehicles sold, and rising inward tourism had noteworthy positive effects on the BCI in January 2025.
SACCI’s BCI increased by 7.7 index-points year-on-year in January 2025 – the largest year-on-year improvement for a month since the Covid-19 restrictions were lifted in December 2022. Increased inward tourist numbers, increased new vehicle sales, lower inflation, and better retail sales volumes made the largest impact on the BCI in January 2025. Less merchandise export volumes also had a significant negative y/y impact on the BCI.
With a changed administration in Washington DC, the world could face some challenges to adhere to a different approach towards international political and economic affairs that could cause some uncertainty and transformed economic and trade relationships between countries. Under such circumstances economic policy options and decisions should be carefully considered.
The broader representation in policy formulation and public sector administration is noted in the broader global and investor context. Although many challenges persist, the goodwill towards South Africa in rectifying and addressing pressing problems is acknowledged. The final convincing moment of achievement should be when the success finds its way towards investor confidence – locally and abroad. All South Africans should be able to benefit from such a bigger and performing economy.
For more information, contact:
Alan Mukoki SACCI CEO 082 551 1159
Richard Downing SACCI Economist 082 822 5566