Western Cape shows excellent growth in business confidence for first quarter of 2018
Business confidence in the Western Cape grew by a record number of points in the first quarter of 2018, despite the province being in the midst of a drought disaster.
According to the Bureau for Economic Research’s Business Confidence Index, business confidence in the province rose by 15 points, reaching the 50 point mark, for the first time since 2016.
Business confidence in South Africa also rose sharply, by 11 points, in the survey of 1700 executives in the five most cyclically sensitive sectors of the economy.
MEC of Economic Opportunities, Alan Winde, said: This score shows one of the biggest increases in business confidence recorded in the province in the past four years reflecting a better national political situation, our sustained focus on growing the economy in the Western Cape, and ensuring that the Western Cape is an excellent place to do business.
CEO of Wesgro, Tim Harris, said the growth in confidence in the province and in the country, were a positive boost for the regional economy.
This boost in business confidence in the Western Cape demonstrates that our city and province are open for business, despite the drought. This increase, to a score of ’50’, is also a demonstration that many businesses are looking forward to President Cyril Ramaphosa implementing pro-growth policies.
We are particularly excited about his focus on boosting investment into the country, and growing the tourism sector. As the official tourism, trade and investment promotion agency for the Cape, we are ready and waiting to assist with this important task.
As part of his drive to ensure that the Western Cape continues to be viewed as a world class investment destination, MEC Winde is meeting with ratings agencies to detail the Western Cape and the City of Cape Town’s response to the drought situation.
Moody’s cited the drought and its impact on key sectors of the economy as a risk in its January statement. In its report released yesterday, sentiments around the drought were more positive, noting the responses by the public, government and private sector.
MEC Winde, together with Premier Helen Zille, and MECs Ivan Meyer and Anton Bredell and City of Cape Town officials, today (Wednesday) met with representatives from Moody’s to brief them on the impact of the drought on the local economy and the mitigation plans put in place to protect the economy.
Provincial and local government level initiatives have been significantly bolstered by the public’s concerted efforts to save water, MEC Winde said.
Harris said Boosting investor confidence in our region is a top priority for Wesgro, and we will be working closely with all stakeholders to get the message out that Cape Town and the Western Cape are open for business.
We therefore welcomed the opportunity provided by Premier Zille and MEC Winde to engage with Moody’s today. Our world-class infrastructure, skilled workforce, high levels of broadband connectivity, and growing economy presents a compelling case for any investor looking to access opportunities in South Africa and the rest of the continent.
Source: Government of South Africa