Economics

South African Business Mood Has Worst Start to Year Since 1993

Sacci business confidence index fell to 92.2 in January
State-of the-nation, budget to shape long-term climate: Sacci

Shoppers exit an Edgars fashion and homeware store, operated by Edcon Holdings Ltd., in Johannesburg, South Africa, on Monday, Feb. 4, 2019. Edcon Holdings is making progress toward securing 3 billion rand ($226 million) in funding to keep the South African clothing retailer afloat, with the Public Investment Corp. part of the ongoing talks.
Photographer: Waldo Swiegers/Bloomberg

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By Prinesha Naidoo

February 6, 2020 at 9:30 AM UTC

This article is for subscribers only.

South African business confidence had the worst start to a year since 1993, increasing pressure on President Cyril Ramaphosa to detail decisive reforms in his state-of-the-nation address next week to rescue an economy that’s been stuck in a downward cycle for more than 70 months.

An index measuring sentiment declined to 92.2 in January from 93.1 in December, the South African Chamber Commerce and Industry said in an emailed statement Thursday. That’s the weakest January number since 1993, when political uncertainty and violence surged during negotiations that preceded the country’s first democratic elections. The median estimate of four economists in a Bloomberg survey was for 93.2.