SACCI Business Confidence Index: No room for complacency    

The latest Business Confidence Index (BCI) data issued by the SA Chamber of Commerce and Industry (SACCI) paints a picture that reflects generally positive business sentiment. But there is certainly no room for complacency, says SME services provider Lula. The March BCI was issued by the SACCI earlier today (Wednesday).

“We agree with the SACCI that there is no room to be complacent. Businesses – especially small businesses – need to be given adequate support in which to thrive. Considering the tumultuous economic environment in which we currently find ourselves, there is no time to waste in not being focused on making businesses succeed,” says Garth Rossiter, Chief Risk Officer at Lula.

A report issued by Lula recently showed that South African SMEs have faced immense pressure over the past 12 months with a 50% drop in turnover year-on-year.

The highest interest rates in more than 15 years have restricted consumers’ ability to spend, and this has had a massive impact on revenue across all industries. This has resulted in the South African economy showing almost no growth in 2024.

“This decline is not just a statistic; it’s a stark reality that’s pushing many business owners to their limits, forcing them to make tough decisions daily just to keep the lights on,” says Rossiter.

“Despite some positive changes in the macroeconomic environment in the past year, like more reliable electricity supply, business owners striving to maintain operations are experiencing reduced cash flow,” he adds.

“Government needs to focus on the simple things, and the jobs will be created as a result: this means providing reliable electricity and water, good infrastructure and efficient ports. South African ports are ranked among the worst in the world and this is disastrous for any importer or exporter.

“It’s not complex, but if they get the basics right, the jobs will follow (and, as an added benefit, successful businesses will add to government coffers through paying corporate tax),” he says.

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