Chamber warns of alarming low business confidence
The South African Chamber of Commerce and Industry (SACCI) says opportunity for new business is crushed by the alarming low business confidence index.
The business confidence index measures how easy it is to do business in the current economic climate.
SACCI economist, Richard Downing says major restrains exist for entrepreneurs, cautioning those contemplating of opening a business.
"Running a business in South Africa, on average, is currently very difficult. The economy growth stands at 2%, which is actually very low. Just to give you an idea; China's economy grows by 7%, which means every eight years the economy doubles.
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In South Africa it's a very slow process. It is not easy to do business at the moment. Certain sectors might be easier but in general, it isn't easy to operate a business in this environment.
The index is measured in terms of 2 015 points and is currently standing at 95.
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"You will have to be careful when opening a business. The climate in terms of trading and production is low. Compared to 2015, the index was sitting at 100. Households are not spending, the man in the street is finding it difficult and business investors are not doing well. Business is tight," says Downing.