Proposed GNU to determine future course of SA business: SACCI

Posted on June 12, 2024
by Yashmika Dukaran

The South African Chamber of Commerce and Industry's Business Confidence (SACCI) emphasizes that the proposed Government of National Unity (GNU) by the African National Congress (ANC) will significantly impact the future trajectory of business.

SACCI's latest Business Confidence Index, just released, indicates a further decline in sentiment among business managers in May. This decline is attributed to uncertainties stemming from the recent elections, which have dampened investor confidence. The index dropped by 1.1 points in May to 107.8 points from April's 108.9, marking a total decrease of 6.9 points over the two months. Factors contributing to this downturn include a decrease in overseas tourist arrivals and reduced import volumes. SACCI's economist, Richard Downing, explains, "The recent national and provincial elections notably influenced business sentiment in April and May. The Business Confidence Index dropped by 5.8 index points in April and continued to decline to 107.8 in May, resulting in a total decline of 6.9 index points over the two-month period."

Downing emphasizes that the formation of the new government will heavily shape business confidence going forward, with short-term fluctuations influenced by factors such as overseas tourism and merchandise export volumes.