Low business confidence is a major inhibitor of trade growth and it needs to be addressed through good governance, political stability and greater private sector and government collaboration, according to freight and logistics industry leaders.
South Africa's business confidence index fell to its lowest in 23 years in December after what some economists termed ‘SA’s 9/11’ – the removal of finance minister, Nhlanhla Nene and the turmoil that followed.
According to data released yesterday (Thursday) by the South African Chamber of Commerce and Industry (Sacci), the Business Confidence Index (BCI) fell to 79.6 from 82.7 in November.
“Low business confidence is driven by government inefficiencies and poor leadership decisions. The declining economy is going to have more of a negative impact if the issues that lead to decreased confidence are not addressed,” said Alwyn Nel, managing director of Kingfisher Freight Services.
He told FTW Online that the transport and logistics industry had already seen a decline in fleet operations, with large companies having to close their depots, sell off assets and reduce their staff complements.
Kate Stubbs, executive: marketing at Barloworld Logistics agreed, pointing out that government leaders needed to provide greater certainty by devising a clear short-term and long-term plan that was focused on sustainable economic growth. “Our leaders also need to better manage labour relations,” she said.
