Business confidence took a knock in Africa, inline with a global trend, according to results from the latest YPO Global Pulse Confidence Index, which tracks CEO confidence levels on a quarterly basis. CNBC Africa reports Africa business confidence slipped 3.2 points to 57.4 with the fall driven by a sharp drop in confidence in South Africa. Africa had the second lowest level of confidence, with Latin America the only region more pessimistic than Africa. While Africa had the second lowest business confidence, the drop was in line with global sentiment. Business confidence in all regions declined in the quarter.
CNBC Africa quoted Gabriel Malan, the chair of YPO’s Africa region, as attributing the dip in business confidence to “slow growth, weak agricultural production and commodity prices, extremely high levels of unemployment and electricity supply issues, in many countries, particularly South Africa” as having “an impact on confidence amongst business leaders in the region.”
Despite a drop in confidence in the second quarter, CNBC Africa says the index also shows two-thirds of CEOs in Africa expect to increase revenues over the next 12 months, with only 7% predicting a decline. The full survey results can be found at YPO.