South Africa has been grappling with tight and unsteady trade conditions in the recent past, according to the latest survey conducted by the South African Chamber of Commerce and Industry (SACCI). The report for August revealed that various key indicators, such as sales volumes, new orders, backlog on orders received, supplier deliveries, inventory levels, selling prices, and employment, all found themselves in the negative category.
The wholesale and retail trade, hotels, and restaurants sector experienced a contraction of 1.2 percent year on year in the first half of 2023, while electricity and water supply output declined by 6.5 percent year on year during the same period. These declines have negatively impacted overall trade activity in the country.
However, amid these challenging circumstances, there is a glimmer of hope. Despite 57 percent of respondents in the survey reporting negative trade conditions, a surprising 56 percent of those surveyed expressed optimism about trade conditions six months from now, around the beginning of 2024.
Input costs have remained high, with 78 percent of respondents reporting rising input costs in August. Sales volumes and employment have also shown significant weaknesses, contributing to the overall difficult trade environment.
The SACCI survey suggests that, despite the current inhibited trade conditions, positive expectations for the next six months support a hopeful outlook on trade. This optimism could be attributed to anticipated improvements in economic conditions and government policies aimed at stimulating growth and investment.
While South Africa faces immediate trade challenges, it appears that businesses and industry leaders are looking toward the future with optimism, hoping for a turnaround in the early months of 2024. In the face of adversity, the resilience of South Africa’s business community is a testament to its enduring spirit and determination to overcome obstacles and build a brighter economic future.
