S.Africa's business confidence dips to a 22-year low: survey
Business confidence in South Africa has dipped to its lowest level since the end of apatheid on the back of an unstable currency and lower commodity prices, a survey showed Tuesday.
The South African Chamber of Commerce and Industry's Business Confidence Index in September fell to the lowest level since 1993, a year before the end of apartheid.
Last month's business confidence index "is the lowest level recorded since July 1993 and is a 22 year low," said the group.
South Africa is the continent's most developed and was long its economic powerhouse, but last year it lost its number one spot on the continent to Nigeria.
The economy is plagued by slow growth of less than two percent, a weak rand, inadequate and unreliable electricity supplies, and high unemployment.
"The financial climate remains tight compared to a year ago with instability (of the rand and precious metals)," said the chamber in its monthly survey.
It echoed the IMF's warning that the prospects of African economies, particularly those heavily reliant on commodity exports risk becoming "desperate".
In its annual World Economic Outlook on Tuesday, the International Monetary Fund forecasted that economic growth in sub-Saharan Africa is set to slow to 3.8 percent this year from 5.0 percent last year amid China's waning demand for commodities.
© 2015 AFP