Exchange-rate fluctuations and crime are the two biggest challenges for businesses in the Southern African Development Community (SADC) region, a survey revealed on Tuesday.
The exchange-rate fluctuation is ”quite a serious problem”, while concerns about crime have marginally come down since last year, Regional Business Climate Survey (RBCS) spokesperson Douglas Reissner said.
The survey, in its second year, questioned 541 companies in the primary, manufacturing and service sectors in the 14 SADC countries.
About 10% of the companies surveyed were South African, while about 20% were international.
Despite these challenges, the survey showed companies were optimistic about prospects for business and investment in the region over the next 12 months.
The business confidence index for the region had increased by six points to 100.
”An upbeat market is anticipated over the next 12-month period.”
The largest jump in performance is anticipated in the manufacturing sector, while the textile sector is expected to improve the least.
”It sends a very positive signal to the region,” said another RBCS spokesperson, Brian Mtonya
He said employment is expected to remain ”mostly unchanged” or to increase marginally.
Further barriers to trade in the SADC region include customs procedures, bureaucracy, and economic and regulatory policy and uncertainty.
”These issues need to be addressed in the most earnest way, in order to develop and grow regional trade,” the RBCS said.
The survey was done to provide an idea of current business performance as well as investment and employment forecasts. Mtonya said the survey was intended as a tool for talks between the public and private sectors in the region.
”The survey is not only for the benefit of South African companies. International companies have a huge interest to know what is happening in the region,” added Association of SADC Chambers of Commerce and Industry chief executive Sipho Mseleku.
The survey also indicated that 41,2% of the companies surveyed across the region had an HIV/Aids workplace programme in place, while 62% recognised the impact of the disease on their organisation. — Sapa