In a collaborative project with the Durban Chamber of Commerce and Industry and eThekwini Municipality, the Durban Business Confidence Index Report was released yesterday, highlighting a 0.3 index points increase during the first quarter of 2024. Picture: eThekwini Municipality
Durban — Confidence in Durban remains slightly above national business confidence and increased by 0.3 index points from 38.12 to 38.42 during the first quarter of 2024, despite recent service delivery issues. This was revealed in the Durban Business Confidence Index Report on Monday.
The report is a collaborative project between the Durban Chamber of Commerce and Industry and the eThekwini Municipality.
Professor of Economics and chairperson of the Macroeconomics Research Unit at the School of Accounting, Economics and Finance at the University of KwaZulu-Natal, Professor Harold Ngalawa said that while the national and Durban figures differ, both indicate that at least six out of 10 people surveyed had no confidence in the economy.
“The low index at both national and Durban City levels is not surprising, especially because of the elections, typically associated with policy and economic uncertainty. Thus, investors tend to be sceptical about the economy until certainty is re-established.”
Ngalawa said satisfaction with service delivery remained relatively low in Durban.
“Among survey participants, 90.7 % reported that if they or anyone else complained about poor service, it is very unlikely that the relevant authorities would address the problem within a reasonable period; only 9.3% were positive that the authorities would address the problem within a reasonable time frame.
“Among the poorest services provided in Durban, electricity tops the list (34.9%) as the worst; followed by water (20.9%); public safety (police, fire, and ambulance) (16.3%); environment (sewerage, solid waste, and parks) (16.3%); and roads (11.6%).”
Community, social, and personal services experienced a sizeable increase in confidence from 26.52 index points in Quarter 4 of 2023 to 35.05 points in the first quarter of 2024, he said.
The manufacturing sector also recorded an increase in confidence, rising from 33.08 in Quarter 4 of 2023 to 39.83 index points. Furthermore, the manufacturing sector recorded a 29% year-on-year improvement in the sector’s business confidence.
“These improvements may be attributed to positive strides in electricity supply, the stabilisation of interest rates, with a strong likelihood for a decrease towards the end of the year, along with the relatively stronger rand, could also explain the improved confidence in the manufacturing sector.”
The wholesale and retail trade, repair of motor vehicles, motorcycles, and personal and household goods, catering, and accommodation significantly contributed to the improved confidence in Durban, he said.
“This sector experienced a 12.34 index point increase in the first quarter of 2024. In the fourth quarter of 2023, the sector’s confidence was at 27.7 points and rose to 40.4 in the first quarter of 2024.
The electricity sector also recorded significant improvements, with confidence recorded at 39.83 in the first quarter of 2024. This improvement is reflected in the sector’s year-on-year growth in confidence of 22%. The improvements in this sector could be a contributing factor to the confidence gains by other sectors as well.
eThekwini Mayor Mxolisi Kaunda led a business sector engagement on Monday and said the Integrated Development Plan (IDP) draft budget would cover service delivery issues – water and sanitation, and electricity – among others. He said job opportunities will be created through various initiatives.
“To date, the municipality has started several Public Private Partnership (PPP) initiatives linked to water security.”
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