Business confidence at the lowest since the undesirable evaluation

The tonnage fell to 31 in the fourth quarter, compared with 34 revised in the previous three months, said Tuesday the Rand Merchant Bank division of FirstRand and the Bureau for Economic Research of the University of Stellenbosch.

Confidence is now at its lowest level since the second quarter of 2017, when former President Jacob Zuma decided to fire Pravin Gordhan as finance minister and saw the country's debt reduced by S & P Global Ratings and Fitch Ratings. While Cyril Ramaphosa's rise to the presidency had boosted the confidence of business leaders earlier this year, the climate has since calmed down and the rand has canceled all the gains resulting from the change in direction.

The ANC's decision to amend the constitution to facilitate the expropriation of land without compensation adds to political uncertainty, even as Ramaphosa's decision to change some key ministers and the management of companies such as Eskom were seen as positive developments. Last month's medium-term budget painted a grim picture of the country's finances, with public debt reaching a new high and two years later than expected.

The level of the index shows that seven out of ten respondents are not satisfied with the current economic situation, the RMB said.

"The reality is a multitude of political and political problems, the main one of which is the uncertainty surrounding the government's land reform plans, continue to weigh on confidence," said Ettienne Le Roux, chief economist at the RMB in his press release. "Unless these problems are solved in a more concrete and quick way, private sector fixed investment and, therefore, economic growth will remain disappointing."