The South Africa Chamber of Commerce and Industry (SACCI) on Thursday said the country's Business Confidence Index (BCI) improved only marginally from 93 points in December 2012 to 94 points in January 2013.
In a new report released in Johannesburg, SACCI Chief Executive office Neren Rau said positive contributions to business confidence on both a monthly and an annual basis were made by manufacturing, construction and new vehicles sales while, amongst the six the financial sub-indices, credit to the private sector and share prices also made positive contributions.
"The January 2013 BCI, at 94, is 3.1 points below January 2012 and is appreciably less than the 8.5 points annual difference in March 2012. With the BCI set at 100 in 2010, and the record high of 122.1 being achieved in December 2006, the current BCI level remains far from desirable," Rau said.
SACCI's key role is to effectively protect and promote the interests of business in South Africa. It key objectives include formulating the policy and viewpoint of business on key issues that affect it and influence constructively the environment in which business operates. It is the leading voice of business in South Africa.
SACCI warned that dramatic response measures will be necessary to restore trust and predictability to the business environment in South Africa.
"The business environment experienced a difficult period in January 2013, but despite the ongoing labor protest activity, business confidence carried forward the positive momentum from the end of last year," Rau said.
Further interventionism in the economy, contemplated by the state, fuelled policy uncertainty, Rau said.
Various recent announcements by government spokespersons against the mining industry were poorly timed and constructed given the need to urgently attract investment into this industry, he added.
The resilience of the private sector, despite developments that tarnished South Africa's attractiveness as an investment destination, mitigated a contraction in business confidence.
The report revealed that emerging market and developing economies continue to be regarded as the driving force for world economic growth in 2013. By fostering fixed investment and an improved business climate, South Africa could benefit substantially from global investor and trade interest, said SACCI.
