South African business confidence achieved its largest year-on-year growth in nearly two years this November, driven by increased tourist activity, rising precious metal prices, and stronger new vehicle sales, according to data released on Tuesday.
The South African Chamber of Commerce and Industry (SACCI) noted that optimism regarding the country’s economic outlook under the coalition government formed earlier this year also bolstered its Business Confidence Index (BCI).
The BCI climbed to 118.1 in November, compared to 114.2 in October and 110.2 in September. This marked the most significant annual increase in the index since COVID-19 restrictions were lifted in December 2022, SACCI reported.
Business sentiment has seen a notable rise since June, following the African National Congress’s loss of its parliamentary majority in national elections, which led to a coalition government with smaller parties, including the pro-business Democratic Alliance.
“The inclusion of broader political representation in the national administration has contributed to a more optimistic economic outlook among businesses,” SACCI said in a statement.
Despite this surge in confidence, faster economic growth remains elusive for Africa’s most industrialized economy.
Gross domestic product unexpectedly contracted in the third quarter due to a drought impacting agricultural output. However, analysts anticipate a return to modest growth in the coming quarters.
