Cape Town, September 7: Due to a bad hit on merchandise import and export volumes, South Africa’s business confidence index fell to its lowest in more than three decades in August. Despite being Africa’s most industrialized economy, due to political turmoil South African economy is going through a bad phase.
“Business has lost all trust in government,” Iraj Abedian, chief executive officer at Pan-African Investments and Research Services in Johannesburg told Bloomberg. “Up to now, there has been one point of a government that has been a point of solace and comfort -- that was Treasury, and now that has also become unreliable for business.”
Though the President Jacob Zuma survived a no-confidence vote, the government could not regain its trust in the industry. The newly proposed economic reforms are also doubtable. Hence the South African Chamber of Commerce says “the business climate remained sensitive to political posturing and an uncertain direction for the economy.”