http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.04Change: -0.05
R/$ = 12.01Change: -0.17
Au 1200.80 $/ozChange: -5.35
Pt 1146.50 $/ozChange: -9.00
 
 
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 Letters 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)
 
 
 
 
 
 
 
 
 
Latest News
Updated 1 hour 14 minutes ago Talks over a proposed merger between heavyweight South African cement producers Afrisam and PPC have collapsed, after the parties were unable to reach consensus on the terms of the deal. AfriSam made a nonbinding, conditional proposal to PPC on December 10 for a...
Updated 1 hour 26 minutes ago The Sustainable Energy Fund for Africa (Sefa) has approved a $780 000 preparation grant for the phase one development of the 40 MW Starsol solar photovoltaic plant, in Chad, which will become the first independent power producer (IPP) scheme to be connected to the...
Updated 1 hour 55 minutes ago President Jacob Zuma has appointed South African Reserve Bank (SARB) adviser and Monetary Policy Committee member Kuben Naidoo as SARB deputy governor, following the promotion of former incumbent Lesetja Kganyago to SARB governor in November. Naidoo, who will take up...
More
 
 
Recent Research Reports
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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...
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96