http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.48Change: 0.08
R/$ = 11.46Change: 0.05
Au 1228.13 $/ozChange: -10.36
Pt 1231.50 $/ozChange: -11.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 03, 2012

Labour disruptions to further damage depressed business mood

Back
Africa|Education|Fairfax|Mining|Moody|Africa|South Africa|United Kingdom|Illegal Mining Strikes|Product|Sacci
Africa|Education|Mining||Africa|||
africa-company|education-company|fairfax|mining|moody|africa|south-africa|united-kingdom|illegal-mining-strikes|product|sacci
© Reuse this



Business confidence declined in September after a temporary uptick the previous month, the South African Chamber of Commerce and Industry (Sacci) reported on Wednesday.

The business confidence index (BCI) retreated by 3.3 index points to 91.7 in September, from 95 points in August. The BCI was 6.7 points below its level of September last year.

Sacci warned that labour relations in especially the mining sector could cause further damage to an already depressed business mood. “The illegal mining strikes raised investors’ sensitivity to South Africa’s unresolved challenges in the labour market.”

The organisation added that business confidence could change from “uncertain” to “unpredictable” if domestic disorder was not timeously resolved.

UK investment analyst firm Fairfax said the ongoing debate about wages needed action from government, warning that the country’s mining sector could become “uninvestable”.

Sacci also said unresolved fiscal issues and a lack of global economic growth were plaguing business and investor confidence.

The slight improvements in the BCI towards the end of 2011 and early 2012, when it stood at 99 points, were followed by a marked deterioration of 2.6 points in the second quarter and 1.5 points in the third quarter.

“The slight optimism in business confidence that prevailed until recently gave way to pessimism as a lack of direction towards sound policy and implementation are impacting the fundamentals of the South African economy."

Only three subindices were positive on a month-on-month basis compared to six in August, while both the financial and real economic subindices fared worse in September compared with the previous month.

“On an year-on-year basis, eleven of the thirteen subindices declined in September and only two were positive. This is a dramatic turnaround on the situation in August, when nine subindices made a positive contribution to the business climate.”

Sacci noted with concern the most recent downgrade of the South African government bonds by ratings agency Moody’s and South Africa’s loss of two positions in the 2012/13 World Economic Forum (WEF) competitiveness rankings to 52 from 50 out of 144 countries in the previoous year.

In the WEF report, released during September, South Africa is rated in the category of effiency-driven economies, in other words where countries had to begin developing more efficient production proceses and increase product quality because wages had risen and prices might not be further increased.

“Unfortunately, labour incidents in South Africa will not be helpful in enhancing either these prospects, global competitiveness or South Africa’s rating amongst investors,” Sacci said.

In the report, South Africa’s worst-performing competitiveness areas were health, primary education and labour markets, while financial markets and market size help the country’s competitiveness strength.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
President Jacob Zuma
South Africa was open for more investment and the country offered investment opportunities that no “wise” businessperson should miss, President Jacob Zuma told captains of commerce and industry during the yearly Business Interaction Group meeting on the sidelines of...
The Competition Commission is seeking input from the public on guidelines directing its approach to the analysis of mergers based on public interest grounds, in addition to competition. Stakeholders had until February 23 to comment on the draft guidelines for the...
The DA plans to submit a private members' bill to Parliament to nullify the National Key Points Act because it is inconsistent with transparency and accountability. "The National Key Points Act of 1980 is a self-serving act that should be relegated to an apartheid...
More
 
 
Latest News
JSE-listed Hudaco Industries’ share price climbed nearly 16% on Friday afternoon as the company announced that it would bring an end to a years-long tax challenges with the South African Revenue Service (Sars). In a trading statement to shareholders, Hudaco revealed...
President Jacob Zuma
South Africa was open for more investment and the country offered investment opportunities that no “wise” businessperson should miss, President Jacob Zuma told captains of commerce and industry during the yearly Business Interaction Group meeting on the sidelines of...
The Department of Trade and Industry (DTI) has rejected claims by black economic-empowerment (BEE) advisory firm EconoBEE that there is likely to be a delay to the scheduled May 1 implementation of the revised BEE Codes of Good Practise. “We are on track for the May...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
BRUCE BRADFORD The 3D printers have a clear upgrade path to eventually print in wood, ceramics and metal-alloys
Three-dimensional (3D) printers being sold in South Africa by electronics distributor Rectron currently print in two types of plastic, but have a clear upgrade path over the next five years to eventually print in wood, ceramics and metal-alloy materials, says Rectron...
The world’s two dominant commercial aircraft manufacturers, Airbus of Europe and Boeing of the US, both recently announced that they had made record aircraft deliveries in 2014. Boeing set a global record for the industry with 723 commercial aircraft delivered, while...
The Western Cape is shifting further into the renewable-energy space with the official opening of a factory specialising in solar inverters, a key component of solar photovoltaic (PV) plants. The investment in the manufacturing facility in Cape Town aims to boost the...
Business Leadership South Africa (BLSA) last month welcomed Cabinet’s establishment of a technical team war room to undertake various interventions to improve electricity supply security over the short- and medium-term, but added that the private sector also had a...
Despite a rapid rise in mobile connections and the economic and social benefits of such connectivity, more than half of the world ended 2014 unconnected. For this reason, industry commentators believe the biggest impact of mobile technology is still to come –...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks