JOHANNESBURG (Reuters) – South African business confidence stabilised in January, data showed on Wednesday, after surging in the second half of 2024 because of optimism about the country’s economic prospects under the ruling coalition government.
The South African Chamber of Commerce and Industry’s Business Confidence Index was at 120.0 in January, down slightly from 121.0 in December but still well above November’s 118.1 level.
SACCI said the index, which it publishes every two months, was dragged lower in January by lower export volumes, while greater imports, vehicle sales and tourist numbers made a positive impact.
New policies under the coalition government formed in June last year had triggered a broad-based improvement in South African business sentiment, the chamber said.
But it cautioned that the approach of U.S. President Donald Trump’s new administration was a source of uncertainty.
Trump signed an executive order last week cutting U.S. financial assistance to South Africa over its land policy and genocide case against Washington’s ally Israel at the International Court of Justice.
South Africa has said the executive order “lacks factual accuracy and fails to recognise South Africa’s profound and painful history of colonialism and apartheid”.
(Reporting by Tannur Anders; Editing by Alexander Winning)
