Page 8 - KZN Business Sense 3.4

KZN

KwaZulu-Natal
Business Chambers Council
ILEMBE BUSINESS CONFIDENCE INDEX (IBCI) – 2017 MID-YEAR

E (55.8), Agriculture, Forestry, • 31% of survey respondents SACCI BCI increased by 1.7 This optimism will be a
nterprise iLembe in
partnership with the iLembe
listed skills shortages and other
much-needed brace against the
Hunting (54.8) and
index points on average of 93.3

Chamber of Commerce,
business constraints. The rapid
Fund (IMF) outlook for South
Industry & Tourism collaborate to Construction, Property labour related issues as primary the 2nd half of 2016. subdued International Monetary
Development, Property Sales,
produce the iLembe Business which also includes Property development of technology and • The major challenge for South Africa, with political ambiguity
Condence Index (iBCI) aimed at Management (50.4). the workforce’s inability to keep Africa is rstly to escape the and weak investor, consumer and
providing a biannual picture of pace was also singled out in this recessionary economic business condence leading to low
business condence in the iLembe • The negativity of the iBCI regard. conditions and to adhere to growth projections for 2017 at 1%
District, as well as an overall activity index was severely matters listed by the credit and 1.2% in 2018.
business outlook. impacted on by the US$ sugar • Service delivery & infrastructure rating agencies as hampering
price (-3.5%), tourism (-5.4%) provision was a perceived economic growth and The private sector and all levels
Highlights and key ndings and construction activity business constraint of 24% of improving employment of government within the iLembe
• The composite iBCI recovered (-18.4%) being the biggest respondents. The cost of opportunities. In this context, District are committed to
from its lowest level recorded at contributors. development, cumbersome business and investor partnering on specic initiatives
the year-end 2016, with the administrative processes and confidence are pivotal. The poor that will aid the viability and
combined hybrid index (i.e. • The two market related speed of decision making were performance of the domestic growth of small and medium
both the survey and activity indicators of competition and highlighted as specic economy in 2016 (GDP growth enterprises and secure investment
indices) for the 1st half of 2017 market size jointly remained the contributors to this business of 0.3%) and an anticipated in key economic sectors and
gaining 4 index points compared most signicant business constraint. 0.5% in 2017 are exposing the geographies in our district.
to the 2nd half of 2016. constraint selected by 51% of dire straits in which the
businesses. Sentiments that the South African Chamber of economy nds itself. Cobus Oelofse
• The iBCI 2017 Mid-Year was local market is overtraded in Commerce and Industry CEO: iLembe Chamber of Commerce
T: 087 727 8630
recorded at 49.5 index points, certain sectors highlighted the (SACCI) BCI In summary ceo@ilembechamber.co.za
equalling the highest business need for competent and • The SACCI Business Confidence The optimistic sentiment and
condence level recorded innovative business innovation Index (BCI) averaged 95.0 expectations expressed by Nathi Nkomzwayo
during the 2nd quarter of 2015. and management, as well as the (2015=100) in the 1st half of businesses in the district was a CEO: Enterprise iLembe
T: 032 946 1256
The iBCI however continues to imperative of developing a 2017 and increased by 1.4 index welcome antidote for the negative nathi@enterpriseilembe.co.za
remain in negative territory, i.e. diverse regional economy, with points on the 93.6 average for business climate and economic
below the neutral level of 50 signicant job creation the 1st half of 2016. In the 1st activity reected in the Activity Richard Downing
Economist: Econdow
index points. potential. half of 2017 the average of the Index component of the iBCI. econdow@axxess.co.za
• The iBCI 2017 Mid-Year
displayed the most signicance What are your main business constraints?
variance recorded, since the Skills shortages and other labour
commencement of the iBCI, 35% related issues
between the survey component
(expressing subjective business 31% Market size
sentiment) and the activity 30%
index (reecting actual 27%
economic activity within the 26% Other (please specify)
iLembe District). 25% 24% 24% 23%

• The activity index component Competition
was recorded at its lowest level 20% 19%
ever, at 46.6 index points rmly
entrenched in the negative. Service delivery & infrastructure
15% provision
• The survey component of the 15%
iBCI, which was conducted Access to finance
during July 2017 was recorded
at a high of 52.4 index points. 10%
Crime
• The Financial & Business
Services, including IT & 5%
Communications sector was the Property rates and taxes
most condent economic sector
(57) followed by Tourism, 0%
Catering & Accommodation
PASSENGER LINERS MAY NO LONGER PASS AFRICA BY

WHEN DURBAN CALLS

than Cape Town, which has its of Atuabo and Tanzania’s Dar es 2016, the hope is that this will “To date, only a handful of
Andrew Pike
own modern cruise terminal, Salaam Port. grow with the advent of the concessions have been granted in
most African ports are Durban Cruise Terminal, which is South Africa under the section 56
commercial and not geared for Africa needs world-class anticipated to be operational early process and each concession
tourism, so there aren’t a lot of facilities in 2019.” agreement is signed aer a period
places where cruise ships can call. “This won’t be any old cruise of negotiation,” he says. “As port
An attraction like the Durban terminal; it will be a new and The preferred bidder, KCT, is a specialists, we see our most
Cruise Terminal could be just iconic structure in Durban, with joint venture between MSC important role as facilitating
what the African cruise industry international-class cruise facilities Cruises SA and Africa Armada win-win solutions between the
needs,” says Andrew Pike, head of that link up with existing tourist Consortium, a black parties.”
the Ports, Terminals and Logistics attractions such as uShaka Marine empowerment partner. MSC The Durban Cruise Terminal
World, oering cruise ship
group at pan-African law rm
Cruises is the world’s leading
W Bowmans. passengers a ‘whole’ experience,” privately held cruise company and has widespread support among
the fourth largest overall.
the public, government and
Pike says.
Africa is on the map for foreign hile He leads the Bowmans team A world-class experience is Negotiating a win-win private sector, says Pike. “The
that is advising KwaZulu Cruise
sentiment is that this project
investors in many other sectors, Terminal Pty Ltd (KCT), the essential if Africa is to increase its concession makes sense, gives Durban
the cruise ship industry mostly preferred bidder for the tender to share of the lucrative, but highly Pike says that KCT will receive a credibility as a tourist destination
passes the continent by. This could develop, construct and operate the competitive international cruise 25-year concession agreement and is good for the cruise
start to change once the new new state-of-the-art facility at the industry. with Transnet National Ports industry.”
Durban Cruise Terminal opens for Port of Durban. Bowmans has Authority. The process for the
business, hopefully in 2019. worked on numerous African port “In Africa, this is an industry awarding of such a concession is
projects, including the proposed with underserved tourism relatively new, carried out under
“There isn’t a large cruise ship Durban Dig-out Port and major potential. Although the number of section 56 of the National Ports
industry around Africa, largely port facilities in Mozambique’s visitors to Durban has been Act.
because of poor facilities. Other Port of Nacala, Ghana’s Freeport increasing, to around 191 000 in

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