SA business confidence falls due to rising political tension

The South African Chamber of Commerce and Industry's monthly business confidence index fell to 93.8 in March from 95.5 in February.

FILE: L-R: Tourism Council chairperson Mavuso Msimang, SACCI president Vusi Khumalo & Black Business Council CEO Mohale Ralibitso. Picture: EWN.

JOHANNESBURG/CAPE TOWN - Business confidence in South Africa fell in March from February and is likely to decline further due to the rising political tension.

The South African Chamber of Commerce and Industry (Sacci)'s monthly business confidence index fell to 93.8 in March from 95.5 in February.

Sacci says towards the end of March, developments extraneous to the economy abruptly upset the momentum of further improving business confidence.

Meanwhile, some experts have warned that the credit downgrade by S&P Global has put the possibility of a recession back on the table for South Africa.

The credit ratings agency announced its decision to place the country on sub-investment grade on Monday.

S&P Global says the changes in the executive leadership, including the removal of former finance minister Pravin Gordhan, pose risks to the country’s policies.

In light of the downgrade, Economist Azar Jammine says an economic recession is now a distinct possibility.

(Edited by Zamangwane Shange)