Page 13 - KZN Business Sense 4.4

ilembe busiNess coNFideNce iNdex (ibci) – 2018 mid-Year

nterprise iLembe, in period, to only the 4th most local contractors and
partnership with the iLembe confident sector. This professionals, late or no Both major
EChamber of Commerce, deterioration resulted from payments, and the lack of
Industry & Tourism, collaborate the ongoing spates of industrial national investor confidence South African indices
to produce the iLembe Business unrest, community protests that is preventing significant
Confidence Index (iBCI), aimed and interference with business international investors to
at providing a biannual picture operations in the region’s main commit to the region (coupled confirm that business
of business confidence in the industrial areas. with the fear that local investor
iLembe District, as well as an ■ The negative sentiment interest is not adequate to confidence in South Africa
overall business outlook. The iBCI around tourism, catering, unlock the region’s full
is a hybrid index derived from, accommodation, property economic potential). is deteriorating.
firstly, a biannual business survey management continues with ■ The Ndwedwe Local
conducted in the iLembe District businesses confidence in this Municipality was the only
and secondly, with a weighted sector retracting by 21.4 index region to record positive
index of financial and economic points over the past two business sentiment. expressed through the 1.3% for the whole of 2018, are
variables. periods. This deterioration, ■ The overwhelming negative survey and business expectation accentuating the desperate need
sentiment expressed by components of the iBCI. It is for policy certainty and a
feasible economic policy
however apparent that
respondents in the Mandeni
Local Municipality, home to businesses are experiencing direction.
conditions worse than what is
the Isithebe Industrial Estate, is indicated by the activity index. in summary
especially concerning. The
mood in the region, which was south african chamber of Both major South African
the most confident in the commerce and industry indices confirm that business
previous period, was severely (sacci) business confidence confidence in South Africa is
impacted on by the ongoing index (bci) deteriorating. In addition to
disruptions to business the SACCI BCI summarised
operations. ■ The consensus is that the above, the Rand Merchant Bank
■ Business confidence in positiveness during the 1st (RMB)/Bureau for Economic
Research (BER) Business
quarter of 2018 retracted,
KwaDukuza also retracted, mainly due to weak Confidence Index (BCI) reported
with disruptions in peri-urban business activity and resulting a decline in business confidence
areas impacting on the disappointing economic growth in the 2nd quarter of 2018, after
commute of workers being figures, exacerbated by the fuel surging in the first quarter.
highlighted as a concern. price and VAT increases, as well
■ The business outlook for the as local and international The private sector and all
highlights and key findings despite the continued 6-month period July to concerns around uncertain land levels of government within
■ Business confidence in the popularity of the KZN North December 2018 was policies, especially. the iLembe District are
iLembe District in the 1st half Coast as a tourist and event recorded at its lowest level, since ■ The major challenges committed to partnering on
of 2018 has remained tourism destination, relates to commencement of the iBCI, at for South Africa’s economy specific initiatives that will
unchanged from its lowest ever concerns about the 41.4 index points, a remain slow economic aid the viability and growth of
level, recorded in the previous management of public disappointing 6.6 index points growth, structural unaffordable small and medium enterprises
half-year period. spaces, especially beach nodes down from outlooks for the 1st public finance exposure, public and secure investment in
key economic sectors and
■ The combined hybrid iBCI for and facilities such as half of 2018, the previous lowest sector management matters geographies in our district. 
the 1st half of 2018 showed an ablutions, and a disregard period. and insufficient fixed
immaterial adjustment of .1 for municipal by-laws and ■ The iBCI Activity Index gained investment by the private
index points compared to the associated anti-social 4.2 index points and measured sector. The debate on the Enquiries
the 2nd half of 2017, the 2nd behaviour. Further concerns a positive 50.4 in the 1st half of land and amendment of the Nathi Nkomzwayo,
lowest level recorded since the relate to “overtrading” in 2018, compared to 46.2 in the Constitution has entered an CEO, Enterprise iLembe,
commencement of the index in certain tourism subsectors, 2nd half of 2017. This is .9 additional uncertainty. nathi@enterpriseilembe.co.za
2015. the persisting seasonal nature index points higher than the ■ The continued poor Cobus Oelofse,
CEO, iLembe Chamber of Commerce,
■ The survey component of the of tourism, skills availability, previous highest activity index performance by the domestic ceo@ilembechamber.co.za
iBCI, which was conducted and the pressure on leisure level recorded in the 3rd quarter economy into 2018 (GDP Richard Downing,
in July 2018 and which records spending due to the increase of 2015. The positive Activity growth of 0.8% y/y in the 1st Economist, Econdow,
subjective business sentiment, in VAT and escalating fuel Index is a welcome retort to quarter 2018) and an anticipated econdow@axxess.co.za
was recorded at the all-time prices. the negative sentiments
low of 35.3 index points, 3.9 ■ The deterioration of sentiment
index points down from the in the wholesale, retail, vehicle
2017 Year-End level, the trade sector was substantiated
previous low. by a number of comments,
■ This level is also a significant including concerns about the
17.1 index points lower than the size of the local market and
highest survey component “too much competition”,
points recorded in the 1st half of customer safety, theft and
2017. diminishing spending
■ The agriculture, forestry, power due to VAT, fuel price
increases and rates being levied
hunting sector featured as the on businesses. Opportunities
most confident economic offered included improved
sector. Together with traffic management and efforts
construction, property to attract additional business
development, property sales, and visitors to retail nodes.
these sectors were ahead of
tourism, catering, accommo- ■ The factors contributing
dation, property management to the retracting sentiment
which remained the third most in the construction, property
confident economic sector. development, property sales
sector remained unwieldly
■ The manufacturing, assembly administrative processes,
sector tumbled, from the most a lack of support by both the
confident sector in the previous private and public sector for

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