South Africa business confidence: At lowest point in the past three decades

While South Africa is without a doubt one of the most business and industry oriented countries in the continent, its business confidence is at its lowest point in the past 30 years. In September the business confidence was as low as 90.3. The last time business confidence was this low was back in 1985. Most entrepreneurs believe the reasons behind this negative trend is due to the global economic crisis from 2008-2009. Foreign investors are cautious when doing business in South Africa.

The current Government led by Prime Minister Zuma has not improved business confidence in local companies. The promises of sound economic policies and reduction of red tape have not come to fruition. Both regular people and businesses have raised concerns at his ability to lead the country out of this unpleasant economic situation.

Furthermore, the finance minister Mr. Pravin is also under public scrutiny as his futile attempts at economic reforms may result in a credit rating downgrade. This will be the final nail in the coffin in people’s trust for the Government.