South Africa’s business trust rises the most in almost two years

According to data released on Tuesday, increased tourism, the price of precious metals, and the sale of new cars helped raise South African company confidence in November, the largest year-over-year increase in nearly two years.

The Business Confidence Index (BCI) of the South African Chamber of Commerce and Industry increased as a result of increased optimism about the country’s economic prospects under the coalition government that was created this year.

From 114.2 in October and 110.2 in September, the BCI increased to 118.1 in November (ZABCI=ECI), opens new tab.

According to the South African Chamber of Commerce and Industry (SACCI), the rise in the BCI in November was the biggest year-over-year gain since COVID-19 limits were removed in December 2022.

Following a national election in which the African National Congress lost its legislative majority and was compelled to share power with smaller parties, such as the pro-business Democratic Alliance, business mood has greatly improved since June.

“The broader political representation in the administration of national government has facilitated a positive assessment of economic prospects by business,” SACCI stated in a statement.

In Africa’s most industrialized country, the increase in corporate confidence has not yet resulted in quicker economic growth.

Due to drought-related impacts on agricultural output, the GDP unexpectedly decreased in the third quarter; nevertheless, analysts anticipate a rebound to modest growth in the upcoming quarters.