South African business confidence rises to six month high

South Africa’s business confidence rose for a second consecutive month in October, thanks to improving import volumes, vehicle sales and retail sales.

The South African Chamber of Commerce and Industry’s (SACCI) monthly business confidence index rose from 93.3 in September to 95.8 in October, with six of the 13 sub-indices surveyed improving month-on-month. Six sub-indices were unchanged and only one showed a decline.

In its monthly report, SACCI linked improving business confidence to the appointment of Tito Mboweni, who became South Africa’s fourth finance minister in two years after replacing Nhlanhla Nene.

Nene recently admitted to having meetings with the Gupta brothers, friends of former president Jacob Zuma who are at the centre of corruption allegations against the former president.

President Cyril Ramaphosa’s various efforts to stimulate the economy were also attributed to the gains in business confidence by SACCI, however it did warn that these real actions need to be backed up by economic policy certainty.