Foreign business chambers falling under the Bilateral Chamber Consultative Committee (BCCC) — an umbrella body representing 21 private-sector business groupings — have a high level of confidence in the South African economy.
This was the message delivered on Friday to the National Assembly trade and industry committee by Sandra van Lingen, chief executive of the British Chamber of Business in Southern Africa and Patrick McLaughlin, the chamber’s parliamentary representative — but both representing the BCCC.
A survey of 252 of the companies under the chamber — which number 3 000 in all — found that 78% of the respondents believed that the South African economy is significantly better than two years ago. Just 22% rated it mediocre to bad.
Chambers including those from Germany, Britain, Italy, France, The Netherlands, Finland and Sweden participated.
Compared with two years ago, 95% felt more confident in the economy and the country in general while 53% had “increased confidence” in the South African government.
Azanian People’s Organisation MP Pandelani Nefolovhodwe and African National Congress MP Lorato Mabe both expressed concern at the survey’s inclusion of business concern at the situation in neighbouring Zimbabwe.
They both wondered why this was relevant to doing business in South Africa. Nefolovhodwe also questioned whether the businesses were a representative sample.
In terms of the survey, 73% of respondents found that events in Zimbabwe had “a negative impact on business” as had the volatility of the South African exchange rate.
Respondents appeared to embrace the concept of black economic empowerment but were concerned that the current empowerment measures would not necessarily have the right empowerment outcomes.
McLaughlin emphasised that British business in South Africa represents about R280-billion-worth of investment, German business represents about R22-billion and The Netherlands has about R11-billion-worth of investment. France and Italy represent about R3-billion and R1-billion rand respectively.
He said worries about Zimbabwe were drawn from respondents’ concern that their business was being affected in that country.
“They have a direct trading interest,” he said.
Both Mabe and Nefolovhodwe wondered what the chambers believe South Africa should do about Zimbabwe.
Nefolovhodwe suggested it is “up to the voters in Zimbabwe” to do something about that country’s problems. — I-Net Bridge