Page 12 - KZN Business Sense Vol.3 No.1

KZN

KwaZulu-Natal
Business Chambers Council

ILEMBE BUSINESS CONFIDENCE INDEX (IBCI) -

2016 YEAR-END

E nterprise iLembe in back to normal levels, the Perceived business constraints
agriculture, forestry and hunting
partnership with the iLembe
Chamber of Commerce,
significant rise in positive
Industry and Tourism collaborate sector (49.3 >8.6) showed a Main business contraints
to produce the iLembe Business sentiment. 35,0%
Confidence Index (iBCI) aimed at
providing a biannual picture of • Other economic sectors remain 30,0%
business confidence in the iLembe entrenched in the negative with
District, as well as an overall the gloomiest sentiments 25,0%
business outlook. expressed by the wholesale, retail
and vehicle trade (31.3),
Highlights and key findings transport, warehousing and 20,0%
• Business confidence in the storage (32) and manufacturing
iLembe District could not reverse and assembly (39). 15,0%
the negative sentiment recorded
in the previous period, nor escape • Business confidence expressed 10,0%
the negativity of the national by businesses in the Mandeni
business climate indicators, with Local Municipality, home to the 5,0%
the combined hybrid iBCI Isithebe Industrial Estate,
(survey and activity indices) for deteriorated from the previous
the 2nd half of 2016 down a period and was recorded at 34.3 0,0%
further 0.9 index points index points (<6.5).
compared to the first half of 2016. Crime Other
• The iBCI activity index measured Market size Competition
• The iBCI 2016 Year-End was 47.2 in the 2nd half of 2016. In Property rates and taxes Access to finance Skills shortage and other labour related issues
recorded at 45.5 index points, comparing the 2nd half of 2016 Service delivery and infrastructure provision
the lowest level of business with the 2nd half of 2015 (y/y),
confidence recorded since the the US$ sugar price (-16%) and
commencement of the iBCI. inflation (-3%) showed the
largest negative impacts.
• The survey component of the Tourism numbers (+19%) and
iBCI, which was conducted real value of building plans
between the mid and end of passed (+5%) reflect increases South African Chamber of real retail sales, less credit extended, District are committed to
January 2017, and which records that positively added to the Commerce & Industry Business and higher cost of energy and lower partnering on specific initiatives
subjective business sentiment, business climate. Confidence Index (SACCI BCI) manufacturing output contributed that will aid the viability and growth
was recorded at the all-time low The SACCI Business Confidence to lesser degree to disappointing of small and medium enterprises
of 43.7 index points, one index • The iBCI survey also reflects on Index (BCI) averaged 93.3 business confidence. and secure investment in key
point down from the 2016 Mid- business expectations over the (2015=100) in the 2nd half of 2016, economic sectors and geographies
Year level. next six months. The business a decrease by 4.0 index points on In summary in our district.
outlook for the 6-month period the 2nd half of 2015. The 2nd half The risk of the credit rating
• The most confident economic January to July 2017 fell to 45.9 of 2016 average of the BCI declined downgrade which was averted Enquires
Cheryl Peters, Acting CEO, Enterprise
sector in iLembe remained index points, a disappointing by 0.3 index points on the 1st half towards the end of 2016, an iLembe, cheryl@enterpriseilembe.co.za
tourism, catering and move of 5.4 index points into of 2016. underperforming national Cobus Oelofse, CEO, iLembe Chamber of
accommodation, with businesses negative territory. The 6-month economy, concerns about public Commerce, ceo@ilembechamber.co.za
in this sector reflecting positive outlook around on-time supply, The main year-on-year finances and increasing levels of Richard Downing, Economist, Econdow,
business confidence at 50.2 index late delivery of orders, and contributions to the deterioration unemployment is reflected in the econdow@axxess.co.za
points; however, 14.5 index inventory levels contributed to of the SACCI BCI came from less most negative iBCI recorded thus The full report is available visit
points down from the level the movement, with sales new vehicles sold, followed by a far. www.ilembechamber.co.za
measured mid-year 2016. volumes, order book, sales prices decline of merchandise export
and input prices all being viewed volumes and lower all-share prices The private sector and all levels
• With the rainfall levels edging positive by business owners. on the JSE. Higher inflation, less of government within the iLembe

ITHALA OPTIMISTIC ABOUT KZN'S ECONOMIC PROSPECTS

S Slow growth, rising growth for 2017 is forecast at 1.0 improved prosperity, thus them in business.
unemployment, severe
percent.
nurturing a legacy of growth, self-
"There is another programme
drought and political tensions
Yvonne Zwane, Ithala Group Chief
are among the major hindrances Development Finance development and upliftment," said called Black Industrialists - it is a
to South Africa achieving a Institutions (DFI) such as Ithala Executive. government programme designed
progressive economy. continue to play a pivotal role in to assist people interested in
helping to advance government's "For 57 years, Ithala has industrialisation. We assist people
A relatively quiet first half of the 'developmental' priorities. As remained steadfast in its through our agencies Ithala and
year for South Africa has been instruments for positive change, commitment to banking the KZN Growth Fund where they can
predicted by research and market DFIs strive to achieve a range of unbanked and championing the get help with research or how to
analysis firm, Nomura. objectives to improve citizens' development of commercial centres get into the industry."
quality of life - enhance public and industrial estates in rural areas,
According to The South African service delivery; increase economic whilst also financing and Ithala is a primary driver of
Institute of Race Relations (IRR), growth; improve infrastructure; supporting fledgling SMME economic development and a
the three biggest provincial and create jobs. enterprises." strategic enabler of support to
economies - Gauteng, KwaZulu- people in disadvantaged
Natal, and the Western Cape - In 2016, 367 SMMEs and co- The call by KwaZulu-Natal MEC communities.
account for 55.2 percent of South operatives were granted business for Economic Development,
Africa's population but contribute loans, thereby facilitating 2 396 jobs Tourism and Environmental The agency's purpose is to make
64.1 percent to South Africa's gross in KZN. Ithala disbursed business Affairs, Sihle Zikalala, to enable the a real and sustainable difference in
domestic product (GDP). loans totaling R120m to SMMEs growth and development of the lives of all those it serves by
and co-operatives during 2016. SMMEs and co-operatives is implementing strategic
Ithala Development Finance supported at all levels of Ithala. programmes as the weapon for
Corporation, KZN's provincial "Our business intent is simple - In a recent interview with Ukhozi positive change.
development agency, remains as an organisation invested in FM, the MEC said: "There are
optimistic that private sector people, we work tirelessly to certain products (called set-asides) For more information
investment will be key to beating empower the community and to that the government will only T: 031 907 8911
www.ithala.co.za
the odds and stimulating growth provide an environment conducive purchase from SMMEs and Yvonne Zwane,
this year. The predicted GDP to a better quality of life and cooperatives as a way of keeping Ithala Group Chief Executive

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