Business confidence shows increase in third quarter

This is the first business confidence index to be published since the formation of the government of national unity.  

The Rand Merchant Bank/BER Business Confidence Index rose by another three points to 38 in the third quarter of 2024, following a five-point increase in the second quarter. 

An economist from the Rand Merchant Bank, Isaah Mhlanga, believes the trend is likely to continue. 

"There is a clear sense of cautious approach amongst business executives that have been surveyed, which are still waiting to see further implementation of economic reforms or how the GNU is going to work going forward. In our view, we are still going to see more recovery in confidence going forward.”

Of the five sectors surveyed, only two experienced a decline in the third quarter of 2024.

Mhanga says the confidence of wholesalers declined from 53 to 51, and that of building contractors declined from 47 to 41. 

“In manufacturing, confidence remained unchanged at 28, and then, as far as new vehicle dealers were concerned, we saw confidence jump by 17 points from 10 to 27. Irrespective of that jump, it remains the most pessimistic.”

The survey also highlighted some of the challenges that local businesses continue to face. 

"In as much as confidence improved and the outlook is expected to improve, the one aspect that remains top of mind for business respondents is the fact that our logistics remain on economic activity and growth overall,” said Mhanga.

“Energy or electricity availability has become less of a worry. Other things that remain a concern are crime and the issue of water.”