Many businesses still uncertain despite rise in confidence index: SACCI

The South African Chamber of Commerce and Industry (SACCI) says despite a rise in the business confidence index, many businesses are feeling uncertain about the country’s economic climate. South Africa’s Business Confidence grew 31.3% last month, compared with an increase of 26.6% year-on-year in the previous month.

The sudden onset of the coronavirus pandemic and the stringent lockdown regulations saw consumer confidence collapse to a 35-year low in the second quarter of last year.

The chamber’s economist Richard Downing explains what’s making businesses jittery.

“There’s a lot of uncertainty among businesses about not only economic policy as such but the land redistribution which is still on the cards. And then of course the world economy that is also battling at the moment, although there’s some light at the end of the tunnel, which is some positive view about where the economy might be going from the low base.”

The SACCI Business Confidence Index was at 94 index points in March – marginally down from 94.3 in February:

[embedded content]