Business confidence edges up slightly among SA companies
BUSINESS confidence among South African companies edged up just slightly last month, with the momentum seen since September slowing, a survey showed yesterday.
The SA Chamber of Commerce and Industry’s (Sacci) business confidence index (BCI) for November measured 96.1, up just 0.3 index points monthon-month.
“The upward momentum of the BCI since September 2018 appears to have flattened and it is the second time this year that the business climate hesitated after encouraging steps to develop and enhance business confidence,” Sacci said.
It said the economy continued to face various limitations owing to inadequate growth, growing public debt, capital outflows, world trade tensions, fiscal constraints and several socio-political challenges that prevented optimal economic performance.
South Africa exited a technical recession in the third quarter but overall growth was expected to be anaemic at 0.7% this year, much lower than the 1.5% the National Treasury forecast in February.
Sacci noted that some state-owned enterprises in particular were facing serious financial constraints and experiencing an inability to deliver proper public services, singling out Eskom.
Yesterday, the cash-strapped utility said it would continue with power cuts that it has been forced to implement countrywide for more than a week to avoid a total collapse of the grid.
Sacci said proposals and debates around the government’s plans to amend the Constitution to allow for land expropriation without compensation “need to be considered with the utmost sensitivity for its economic consequences”.
“It should be guided by lessons of international experience and focus on enhancing productivity and strengthening security of tenure,” it said. |