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ILEMBE BUSINESS CONFIDENCE INDEX (IBCI)

– 2021 YEAR-END

he iLembe Chamber of of responding businesses
Commerce, Industry & indicated that the market
TTourism, in partnership uncertainty brought about by
with Enterprise iLembe, the Covid-19 pandemic, and
collaborate to produce the the inconsistency of responses
iLembe Business Confidence to mitigate the business impact
Index (iBCI), aimed at thereof was their primary
providing a biannual picture constraint.
of business confidence in the The subdued national
iLembe District, as well as an economy, the related low
overall business outlook.
overall business confidence and
The 2021 Year-End iBCI the disrupted regional trading
was set against the backdrop environment resulted in the
of more relaxed economic two market related indicators of
restrictions associated with market size, and the economic
the Covid-19 Risk Adjusted decline and competitiveness
Strategy, the global outrageous and adaptability jointly being
overreaction to the fourth the most significant business
wave in South Africa constraints selected by 43% of
attributed to the Omicron levels recorded in the previous hunting sector, the transport, the road infrastructure and participating businesses.
variant, and the destruction 6- and 12-month periods. distribution, warehousing, resulting traffic congestion 31% of survey respondents
of businesses and business storage, freight forwarding, listed service delivery and
confidence during the violent ■ Sales Volumes, as a measure shipping and exports sector, continue to contribute to the infrastructure provision as
civil unrest that engulfed of business performance, and the manufacturing, prevailing sentiment. primary business constraints.
KwaZulu-Natal, and parts of return on sales efforts and assembly sector. Despite an improvement Two further public sector
Gauteng, during July 2021. trading location, was at the in business sentiment,
best levels in six years. Having felt the full brunt business confidence in the indicators, regulations and
The iBCI demonstrates of the pandemic induced compliance and property
the resilience of the iLembe ■ Similarly, Order Book, as economic restrictions, manufacturing, assembly rates and taxes were perceived
District’s economy, and a turn a leading indicator of market the tourism, catering, sector remains firmly business constraints of 19%
on a positive trajectory that depth and liquidity, was at accommodation, property entrenched in negative and 24% of responding
was aided by the economic the best level since the first management sector, the most territory. A variety of factors businesses respectively -
recovery strategy of the region. half of 2017. are influencing this sentiment, making these three public
■ Whilst the business pessimistic sector during the including macro-economic sector indicators being chosen
The iBCI is a hybrid index sentiment recorded for the first half of 2021, benefitted factors such as raw material
derived from, firstly, a remainder of the business from the decision to maintain pricing and the availability of by an overwhelming 74% of
respondents as the primary
biannual business survey indicators, i.e. levels of Alert Level 1, and the hasty input stock, both locally and risk to business.
conducted in the iLembe employment, inventory global response to the Omicron imported.
district and secondly, a levels and late delivery variant. In addition to In conclusion
weighted index of financial and of orders remained in beaches remaining open and The iBCI Survey component
The Covid-19 crisis,
economic activity variables. negative territory, all showed international travel restrictions also reflects on business combined with the civil unrest
improvements compared forcing South Africans to expectations and business
Highlights and Key Findings outlook over the next six in the iLembe District, ravaged
to the lows of the previous make alternative local holiday business sentiment and created
iLembe based businesses six months. The persisting plans, the return of the popular months. Business expectations
came back to life during the negative sentiment around Ballito Rage and the Ballito for the first half of 2022 significant uncertainty within
the regional economy.
second half of 2021 with the levels of employment is Pro contributed to the positive continues on its positive
combined hybrid iBCI (i.e. symptomatic of the dilemma sentiment. trajectory, recording the most Resolute political leadership,
both the survey and economic of employment stagnation The common concern positive business outlook, intent on reassuring the
activity indices) being in our region, and more expressed by respondents in 58 index points, since the private sector of an improved
recorded at the highest level effort is required to this sector was the need to commencement of the iBCI. and supportive business and
ever. The iBCI 2021 Year-End eliminate barriers to job maintain the positive trajectory The sentiments expressed investment environment,
was recorded at 52.7 index creation and the constraints of the North Coast of KZN, in the iBCI survey paints a speedy relief to affected
points, the first positive index to conducting business. and the ability to respond to, picture of light at the end of businesses, and an improved
recorded, i.e., above the neutral and address, the risks that has a very long tunnel, with local trajectory of the vaccine rollout
level of 50 index points, since With regards to business the potential to wreck it. business emerging from the will aid our region’s business
the introduction of the iBCI. confidence per economic crisis weaker than going into it. recovery timetable.
sector, three sectors recorded The confidence level of
Although the iBCI Survey Business requires local The private sector and all
component marginally positive business confidence, the construction, property government, and its public levels of government within the
i.e. above the neutral level of 50
development, property sales
recorded negative sentiment index points. The health and sector, a key sector in the sector partners, to urgently iLembe District are committed
at 49.7 index points, the 18.3 wellness, including medical iLembe District’s economy, respond to its pleas around to dynamically partnering on
index point improvement on and fitness sector was the most remained in negative territory. addressing the “basics”, specific initiatives to stabilise
the previous period greatly confident economic sector, Views expressed by responding viz. tackling decaying our economy, and that will
contributed to the overall level followed by tourism, catering, businesses in this sector repeated infrastructure, effective law aid the viability and growth of
of the composite index. small and medium enterprises
accommodation, property concerns pertaining to delayed enforcement, reining in the and secure investment in
The positive iBCI Economic management and the wholesale, planning approvals and unwieldy cost of doing business and
Activity Index component of retail, vehicle trade sector. building control processes. removing red tape, if local key economic sectors and
55.6 index points was the third Despite sentiment remaining The development of businesses is to stand a chance geographies in our district. 
successive period of positive to survive the numerous
economic activity for the in the negative, all other infrastructure, the structural and other modern Enquiries:
pertinent sectors recorded
iLembe District. expectations around economic challenges it faces. Linda Mncube, CEO, Enterprise iLembe,
improved sentiment, namely developers’ contributions linda@enterpriseilembe.co.za
All the business indicators the construction, property towards infrastructure With regards to constraints Cobus Oelofse, CEO, iLembe Chamber of
included in the iBCI Survey development, property sales development, an increasing to conducting business in Commerce, ceo@ilembechamber.co.za
Richard Downing, Economist, Econdow,
Index improved against the sector, agriculture, forestry, concern about the capacity of the iLembe District, 32% econdow@axxess.co.za

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