South Africa's business confidence improves

Africa's most industrialised economy was in recession even before the pandemic struck, with strict lockdowns compounding its woes.

27 November 2020 | Economics

Although the surge in business confidence is encouraging, it only signifies an economy that's out of intensive care, and not out of high care. Ettienne Le Roux,chief economist: RMB

South Africa's business confidence improved in the fourth quarter of the year, a survey showed on Wednesday, as easing of Covid-19 lockdowns in the past few months led to a resurgence in economic activity.

The Rand Merchant Bank (RMB) business confidence index (BCI), compiled by the Bureau for Economic Research, jumped to 40 points in the fourth quarter from 24 points in the third quarter.

The report showed that confidence among retailers and wholesalers rocketed during the quarter, clocking a better improvement than during seasonal Black Friday and festive holiday sales periods.

Retailers also benefited from the shift in consumer spending toward ready-made meals and work-from-home equipment, according to the survey.

However, the survey pointed out that supply-side activity needed to catch up more strongly with demand to help ensure the upward trend in confidence lasts.

Recession

"Although the surge in business confidence is encouraging, it only signifies an economy that's out of intensive care, and not out of high care," Ettienne Le Roux, chief economist at RMB said.

South Africa's central bank on Tuesday warned that a massive increase in projected government debt and problem mortgages posed a "major threat" to the country's financial stability.

Africa's most industrialised economy was in recession even before the pandemic struck, with strict lockdowns compounding its woes.

The country has the highest rate of recorded Covid-19 cases on the continent, with more than 750 000 confirmed cases and over 20 000 related deaths.

The survey was conducted online between Oct. 5 and Nov. 16, covering about 1 800 executives across building, manufacturing and the domestic trade sectors. - Nampa/Reuters

Similar News

 

South Africa's mining industry to support vaccine rollout

20 hours ago | Economics

South Africa's mining companies will support government in the rollout of Covid-19 vaccines as the nation battles a surge in infections, the industry body said...

Price monster continues to be gentle

20 hours ago | Economics

The annual inflation rate for December 2020 stood at 2.4%, down from 2.6% recorded in December 2019, a decrease of 0.2 percentage points.This brings great...

Kenya Airways plans more pay cuts

20 hours ago | Economics

Kenya Airways plans further pay cuts for employees of as much as 30% after the airline was hit by the coronavirus pandemic that has caused...

Namibian economy expected to continue bleeding red ink

20 hours ago | Economics

PHILLEPUS UUSIKUAlthough most economies, including South Africa, rebounded in in the third quarter of 2020, Namibia’s economy remains into deeper recession.According to Indileni Nanghonga, the...

China remains a top market for Namibian exports

1 day - 18 January 2021 | Economics

PHILLEPUS UUSIKUTotal exports deteriorated in November last year by 3.9% when compared to its level of N$8.3 billion observed in November 2019.The top three countries...

Nudo supports striking Shoprite employees

1 day - 18 January 2021 | Economics

The National Unity Democratic Organisation (Nudo) has thrown its weight behind employees of the Shoprite group who have been striking since December for better wages.Employees...

Vulnerable residents relocated to avoid flooding

1 day - 18 January 2021 | Economics

Residents of informal settlements who were relocated by the City of Windhoek (CoW) from riverbeds and other areas to lessen their exposure to flooding have...

Ivory Coast faces 100 000-tonne cocoa bean pile-up

1 day - 18 January 2021 | Economics

ANGE ABOAA pandemic-induced slowdown in global chocolate demand has led to a pile-up of about 100 000 tonnes of cocoa beans in Ivory Coast's interior,...

Nearly half-billion up for SME loans

4 days ago - 15 January 2021 | Economics

PHILLEPUS UUSIKUFast tracking the disbursing of loan payments is of critical importance to ensure that affected Small and Medium Enterprises (SME’s) receive funds on time...

TransNamib unable to meet wage increment demands

4 days ago - 15 January 2021 | Economics

TransNamib management said the company is currently unable to meet any wage increases due to its well documented weak financial position.TransNamib stated this while responding...

Latest News

South Africa's mining industry to...

20 hours ago | Economics

South Africa's mining companies will support government in the rollout of Covid-19 vaccines as the nation battles a surge in infections, the industry body said...

Price monster continues to be...

20 hours ago | Economics

The annual inflation rate for December 2020 stood at 2.4%, down from 2.6% recorded in December 2019, a decrease of 0.2 percentage points.This brings great...

Audit firm ‘knew’ of Fishcor...

20 hours ago | Crime

STAFF REPORTERWINDHOEKStier Vente Associates, external auditors for beleaguered state fishing company Fishcor, only reported the suspicious Fishrot-related transactions to the Public Accountants’ and Auditors’ Board...

Covid-19: Former Rundu mayor Ihemba...

20 hours ago | People

KENYA KAMBOWERUNDURundu mayor Gabriel Kanyanga has described former Rundu councillor Ralf Ihemba, who died from Covid-19 yesterday, as a hero and a loyal Swapo cadre.Kanyanga...

Creating change through gaming

20 hours ago | Youth

Enzo AmueleLothario Smith, a 17-year-old learner who is currently grade 11, recently launched his first game on both Android and IOS platforms after working on...

Kenya Airways plans more pay...

20 hours ago | Economics

Kenya Airways plans further pay cuts for employees of as much as 30% after the airline was hit by the coronavirus pandemic that has caused...

Namibian economy expected to continue...

20 hours ago | Economics

PHILLEPUS UUSIKUAlthough most economies, including South Africa, rebounded in in the third quarter of 2020, Namibia’s economy remains into deeper recession.According to Indileni Nanghonga, the...

Blind loyalty is costing Namibia

20 hours ago | Opinion

Too many people confuse loyalty with blind obedience. When loyalty clouds judgement to the extent that one is ready to ignore their inner child’s voice...

Angola releases Namibians arrested for...

20 hours ago | Justice

NAMPARUNDUFour Namibians who were held at the Gciriku Post holding cells for illegally crossing into Angola have been released.Three boys and a man aged 23...

Load More