The latest Grant Thornton research highlights that South Africa’s businesses remain pessimistic in terms of expectations for future business growth prospects reflecting only 5% optimism for the second quarter of 2015.
The International Business Report second quarter research for 2015 also reflects a depressed South African economy as the threat of strikes and unemployment remain high.
Cape Talk presenter Kieno Kammies spoke to Ian Scott, CEO of Grant Thornton Cape Town about the findings.
The biggest factors contributing to low business confidence in South Africa:
According to Grant, South Africa is 40% down from the business confidence results in 2013. He cited these five findings as the biggest factors to poor business confidence.
1. 57% of the businesses surveyed said rising energy costs and the unstable Eskom grid were the biggest constraint to business growth.
2. 45% of the businesses cited economic uncertainty, with poor commodity prices also playing a significant role in their perception.
3. 42% of the businesses felt that the exchange rate was a hindrance to business growth.
4. 39% of the surveyed businesses see regulation and red tape as holding them back.
5. 65% of the businesses have also been impacted by crime and feel it is a disadvantage.
Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies: