Business confidence up despite strikes

Johannesburg - Business confidence in South Africa rose for the second consecutive month in January despite ongoing labour unrest, but dramatic government action is needed to improve investor sentiment for the rest of 2013, a survey showed on Thursday.

The Business Confidence Index (BCI) edged up to 94 in January from 93 in December, the South African Chamber of Commerce and Industry (Sacci) said, but was down 3.1 points year-on-year. Positive contributions were made by manufacturing, construction and new vehicle sales.

However, Sacci added that the business environment was difficult in 2013 amid more protests by miners and farm workers and various announcements by government officials against the mining industry.

"Dramatic response measures will be necessary to restore trust and predictability to the business environment," Sacci said.

"The resilience of the private sector, despite developments that tarnished South Africa's attractiveness as an investment destination, mitigated a contraction in business confidence."