Business confidence rises on post-election hopes

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Newsletter| South Africa’s business confidence rose in April as retail sales and import volumes improved on post-election hopes

South Africa’s business confidence rose in April as retail sales and import volumes improved alongside a firmer currency, a survey showed on Tuesday, lifting sentiment from a seven-month low as businesses also saw a stable post-election policy environment.

“The common theme of election manifesto policies among the parties to drive economic growth and job creation seems to resonate well with the markets,” the chamber of commerce and industry said. The rand has gained close to 3% against the dollar since the beginning of April, better than many of its emerging market peers, and the Top-40 Index has rallied nearly 7%, shooting through the 52 000 mark.

While a victory for the ruling ANC is almost certain, its majority is likely to shrink, which could constrain President Cyril Ramaphosa’s reforms and keep the economy on a slow burn. In fixed income, the yield on the benchmark government bond due in 2026 added 2 basis points to 8.6%. Meanwhile, the Electoral Commission says it is ready for the 26 744 565 South Africans on the voters’ roll who will make their mark for the 2019 national and provincial elections.

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