South African business confidence at 15-year low: survey

South African business confidence has fallen to its lowest level since 1999, amid protracted labour disputes, a leading survey showed on Thursday (07/08/2014).

The South African Chamber of Commerce and Industry's Business Confidence Index fell to the lowest level for 15 years in July, a fresh warning that the economy is in difficulty.

South Africa, long Africa's powerhouse economy, recently lost its number one spot on the continent to Nigeria.

The economy is beset by slow growth, high unemployment and a series of strike-induced wage agreements that policymakers fear will spur inflation that is already above six percent.

Recent stoppages by platinum miners and manufacturing workers has roiled an already struggling economy, despite an improving global outlook.

Both strikes ended with workers being awarded above-inflation wage increases.

"Persistent labour unrest in July remained a challenge to businesses in South Africa," he chamber said, adding that businesses would likely shed jobs to rein in higher wage bills.

"It is expected that large - scale rationalisation will have to take place to remain internationally competitive," the chamber said. - AFP