SOUTH Africa’s business confidence index fell in May, an industry survey showed yesterday.
The South African Chamber of Commerce and Industry (SACCI) said its confidence index dipped to 82.0 points in May from 84.2 in April as businesses fretted that the current strike activity, threats of future labour unrest and global financial uncertainty may undermine economic growth prospects.
Labour confederation Cosatu’s long-standing demands that President Jacob Zuma’s government adopts a more populist economic policy stance have already spooked investors.
“SACCI is concerned that, under difficult economic circumstances, South Africa is still dogged by debate on the economic model that is appropriate for the country and a spate of labour demands for wage rates well in excess of inflation,” the organisation said in a statement. — Reuters