South African business confidence fell to a five-month low in February. The index dropped to 93.4 in February to from 95.1 in the previous month, the South African Chamber of Commerce and Industry said in an e-mailed statement on Wednesday.
While sentiment jumped to a two-year high in early 2018 after President Cyril Ramaphosa won the leadership of the ANC and the country, confidence has waned as businesses seek reforms. Fixed investment declined in every quarter of 2018 as the economy grew 0.8% for the year, Statistics South Africa said on Tuesday.
“South African economy faces serious challenges,” the chamber said. “These challenges are now deeply entrenched and need to be handled with urgency and care.”
It added that the upcoming elections “do not only serve as an opportunity to establish credible representation, but also provide a platform to come to a rational and sustainable economic policy framework that carries the support of the business community”. — Reported by Prinesha Naidoo, (c) 2019 Bloomberg LP
