A South African business confidence index dropped in May, reaching its lowest level since September 2020 on various factors which include lower trade volumes, higher financing costs and power cuts. The business confidence index of the South African Chamber of Commerce and Industry (SACCI) dipped to 89.3 in May from 93.7 in April, according to the SACCI.
“Given current global economic conditions and structural economic obstacles resulting from the lockdown rules, it may take some time for the economy to recover and acquire momentum,” SACCI stated in a statement.
In April, disastrous floods struck South Africa’s coastal KwaZulu-Natal province, killing hundreds of people, displacing thousands, and causing billions of rands in infrastructure damage, disrupting exports and imports. In May, the central bank raised its primary lending rate by the most in almost six years, while state utility Eskom imposed major power shortages.