Business confidence climbs sharply in wake of Ramaphosa’s presidency

Business confidence climbs sharply in wake of Ramaphosa’s presidency

- Business confidence in the 4th quarter climbed to its highest level since 2015 on the back of Cyril Ramaphosa taking over as president

- The RMB/BER business confidence index 11 points, the most since 2012

- Economists say the rise in confidence is due to better domestic politics

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Cyril Ramaphosa was favoured by economists as their preferred candidate to lead South African out of the economic doldrums during the ANC’s hotly contested leadership battle.

Since taking office a little over a month ago Ramaphosa has been responsible for widespread hope and renewed optimism among ordinary South Africans. That sentiment has been echoed by the business world.

READ ALSO: President Ramaphosa’s South Africa: 5 possible futures

Business confidence in the fourth quarter climbed to its highest level in nearly three years as Ramaphosa boosted the prospects of business-friendly policies.

Briefly.co.za gathered that the RMB/BER business confidence index rose by a whopping 11 points, the most since 2012 to 45. Economists all agree the rise in confidence is due to better domestic policies.

RMB and BER said: “In the absence of the appointment of Cyril Ramaphosa as the country’s new president and his subsequent Cabinet reshuffle, among other factors, developments around business activity - and profitability - would not have justified the large 11-point jump in the BCI.”

Ramaphosa’s cabinet reshuffle was also received positively. The decision to bring back Nhlanhla Nene as finance minister and to appoint Pravin Gordhan as the public enterprises minister has been lauded by business.

Gordhan has been described as South Africa’s Mr-fix-it. He will oversee the running of six biggest state-owned enterprises who are currently cash-strapped and mired in allegations of corruption and state capture.

READ ALSO: Pro-Zuma lobby group halts Ramaphosa’s R4.7 billion energy deal

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Source: Briefly.co.za

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