SA business confidence slips

JOHANNESBURG – South Africa’s business confidence dipped in January and could suffer irreparable damage from rampant crime, the South African Chamber of Business (SACOB) said yesterday.

SACOB’s Business Confidence Index (BCI) slipped to 101,5 after rising to an all time high of 103,5 in December. The only positive influences came from higher retail sales, equities market and precious metal prices and the recording of fewer liquidations.”All the other sub-indices affected the BCI adversely and there are signs that a broader spectrum of activity may be topping the cycle,” the business body said.SACOB urged the government to make the fight against crime its highest priority.”SACOB is concerned that business confidence, and eventually investor confidence, may suffer irreparable damage if current crime rates are not eradicated,” it said.South Africa is saddled with one of the world’s highest rates of crime and opposition politicians and the media say President Thabo Mbeki’s government is failing to curb murders, rapes and car hijackings.Mbeki insists that crime is not out of control.High crime levels have raised concerns that the country will not be able to provide basic security when it hosts the soccer World Cup in 2010, which is expected to help the economy.SACOB said business confidence could remain relatively strong in 2007 under a consistent economic policy framework, although its main driver would likely shift from exuberant consumption to viable investment projects by the private and public sector.Nampa-ReutersThe only positive influences came from higher retail sales, equities market and precious metal prices and the recording of fewer liquidations.”All the other sub-indices affected the BCI adversely and there are signs that a broader spectrum of activity may be topping the cycle,” the business body said.SACOB urged the government to make the fight against crime its highest priority.”SACOB is concerned that business confidence, and eventually investor confidence, may suffer irreparable damage if current crime rates are not eradicated,” it said.South Africa is saddled with one of the world’s highest rates of crime and opposition politicians and the media say President Thabo Mbeki’s government is failing to curb murders, rapes and car hijackings.Mbeki insists that crime is not out of control.High crime levels have raised concerns that the country will not be able to provide basic security when it hosts the soccer World Cup in 2010, which is expected to help the economy.SACOB said business confidence could remain relatively strong in 2007 under a consistent economic policy framework, although its main driver would likely shift from exuberant consumption to viable investment projects by the private and public sector.Nampa-Reuters