Business confidence dips slightly in June, July – Sacci
National business organisation the South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) dipped slightly by 0.8 index points to 96.2 in June, and declined further by three index points to 93.2 in July.
The three-index-points decline in July was less than the 6.6 index points month-on-month decline in November 2015 and the 3.6 index points month-on-month decline in December 2015, when there was a change of Finance Ministers over a weekend.
The month-on-month negative moves in April and May 2020 during the level 5 Covid-19 lockdown were also much more severe than the July BCI, Sacci highlights.
The month-on-month dip in July suggests a more muted and limited effect than the disruptions had on the overall business climate in the country, Sacci says.
It notes that the collective actions of businesses and communities resulted in a containment of the disruptions caused by the rioting and looting in certain areas.
“The spate of looting and destruction during July in certain areas of South Africa, whatever the intention, was a setback to inclusivity, growth and job creation. Its opportunity cost will extend the timeline to attend to critical structural programme implementation in the economy.
“Public sector efficacy on all levels of government was exposed as lacking ability and urgency but collaboration and the resilience of communities and business indicated the resolve of society against radicalism,” Sacci states.
The organisation emphasises that it remains important to attend to the process of creating expectations that could only be fulfilled by generating equal opportunities, the ability to create wealth and enhancing individual entrepreneurial capabilities.
Sacci says the development process embarked upon should be revisited and attended to, to ensure that South Africa is able to sustain the development required for the economy to sustain raised expectations in the country.
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