Proposed GNU to determine future course of SA business: SACCI

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The South African Chamber of Commerce and Industry’s Business Confidence (SACCI) says the formation of the African National Congress (ANC)-proposed Government of National Unity (GNU) will largely determine the future course of the business.

The SACCI’s newly released Business Confidence Index shows that sentiment among business managers fell further in May.

This as the outcome of the recent elections weighs on investor confidence. The index fell by 1.1 points in May to 107.8 points from 108.9 in April. This shows a decline of 6.9 points over the two months.

A decline in overseas tourist numbers and lower import volumes largely drove the lower sentiment among business managers.

The Chamber’s economist Richard Downing says, “Recent national and provincial elections had a notable effect on the business conference during April and May 24. The BCI dev by 5.8 index points in April and further on to 107.8 in May. It’s a decline of 6.9 index points over the two months.”

“The formation of the new government will to a large extent determine the future course of business confidence and the other business climate will be influenced in the short term that’s month to month. Overseas tourists and merchandise export volumes sold played a positive role,” adds Downing.

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