South African business confidence rose for the first time in six months in July, boosted by exports.
The index increased to 94.7 from 93.7 in June, the South African Chamber of Commerce and Industry said in an emailed statement Wednesday. Confidence is still lower than a year ago.
Business confidence has slumped each month after reaching a record high in January, its longest losing streak since 2011, as industries await real reforms under the new administration of President Cyril Ramaphosa. While the downward trend has halted, a sustainable improvement in sentiment will depend on the removal of policy and political uncertainties, the chamber said.
The rand weakened after the ruling African National Congress said last week it will complete a process to change the constitution to allow land seizure without payment. The “without-payment” clause accentuates uncertainty over property rights and is a concern for investment, the International Monetary Fund said before the ANC’s announcement.
