- South Africa’s ongoing energy and water supply issues are acting as dampeners for investment into the country, according to the SA Chamber of Commerce and Industry (Sacci).
- The declining levels of investment could be a hindrance to the potential economic growth, it warned.
- Higher utility tariffs and fuel prices were also major contributors to a cautious business outlook.
South Africa’s on-going energy and water supply issues are acting as dampeners for investment into the country, according to the SA Chamber of Commerce and Industry (Sacci). The declining levels of investment could be a hindrance to the potential economic growth, it warned. Higher utility tariffs and fuel prices were also major contributors to a cautious business outlook.
The Chamber pointed out that the Business confidence in South Africa plunged to a one-year low in September amidst a fall in retail sales and manufacturing. The business confidence index (BCI) dwindled to 91.0 points in September from 91.9 in August, against 97.0 in May.
Sacci president Alan Mukoki remarked that energy and water supply concerns remained the topmost concerns for the business community. Mukoki pointed out that the investment from both the public and the private sectors since 2016, has been inadequate to sustain economic development He urged for a Clear, consistent and investment-friendly economic policy, to attract both local and foreign investors to the economy.
The SA Reserve Bank (SARB) also endorsed the view about falling investments in the country and added that gross fixed capital formation remained weak despite the strong recovery in household consumption and production levels. It added that the July unrest further impacted investor confidence. Though forecasts for investment shifted to being less negative, investment growth is still projected at -0.3 percent in 2021, 0 percent in 2022 and 1.8 percent in 2023, SARB said.
