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“Things are not necessarily getting worse, it is just not getting better,” he said.
The agricultural sector was the only one to show a three-month improvement for August.
The construction index on the provincial barometer fell 4.6% month-on-month in August. This is the greatest decline of all the provinces.
“The manufacturing (factory) industry is depressed and even government spending is subdued,” said Schüssler. “On a year-on-year basis figures don’t look too bad, but quarterly comparisons provide cause for concern.”
He reiterates that this is not a recession but rather stagnation, which may be influenced by depressed overseas markets.
A point of concern for the tourism industry, which is a major contributor in the province, is that passenger numbers for the Cape Town Airport now longer display the steady growth of the past three years.
“It is not yet a nightmare, but figures that have been positive each month in the past are now going in the opposite direction.”
Index figures for petrol sales in the province have been negative for the past eight months, which reflects the pressure consumers are experiencing.
Listlessness in the retail sector is another sign of such pressure. Small businesses in particular are struggling.
Piet Badenhorst, chairperson of the Afrikaanse Handelsinstituut (AHI) in the Western Cape, agrees.
“The economic slowdown of recent years is now taking its toll, especially on entities without large cash reserves,” said Badenhorst.
The greatest complaint he encounters in meetings with industry bodies is that there is still no culture of development and innovation among officials at local and provincial authorities.
“As long as they perform their basic duties they are satisfied, but unfortunately this does not engender economic growth,” said Badenhorst.
“Job creation and poverty relief are the main aims of the provincial government and I believe Alan Winde, minister of finance, economic development and tourism, is passionate about his task.”
Access to financing remains a problem, especially for young rural business people.
“We at the AHI feel there is still too much talk and not enough is done to put plans into action.
“This hampers economic growth.”
More than 500 000 people in the Western Cape are unemployed, 150 000 more than four years ago. This is an indication of major problems that have to be dealt with, said Badenhorst.
“Big companies have billions in cash, but are reluctant to spend it.
He surmises the solution would probably be "a partnership
between the government and the small business sector”.
Said Badenhorst: “This would require a new mind-set and an officialdom actively intent on development. Brazil is an example to South Africa.”
- Sake24
For business news in Afrikaans, go to Sake24.com.
For more news on the Sake24/BoE Private Clients barometers, go to www.fin24.com/barometer.
