European business is closely monitoring political and economic developments in South Africa – particularly in the run-up to 2019.
According to Stefan Sakoschek, regional director of the European Union (EU) Chamber of Commerce and Industry in South Africa, the chamber continues to work closely with government, lobbying and advocating for economic growth – but there is growing concern.
“The EU remains a trusted trading and investment partner in South Africa representing 77% of foreign direct investment in the country. The chamber represents 2 000 odd European companies actively trading, manufacturing and operating locally,” he said. “A stable political environment is essential to us and there has been a lot of change in South Africa in the past 18 months. Companies are watching developments closely – especially in light of the election in 2019.”
He said the current macro economic indicators only added to the concerns over political instability.
“We are hoping that business confidence will improve and that there will be some positive developments in 2018 that will see economic improvement, but at present the outlook is not positive.”
He said it was important that South Africa ensured its house was in order, especially with increased competition from the region. “South Africa has real competition in the region with many of the big international players already looking at other economies should things further deteriorate here."
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South Africa has real competition in the region. – Stefan Sakoschek
