JOHANNESBURG – Trade conditions in South Africa will decline over the next six months as expectations weakened last month due to power cuts, according to the SA Chamber of Commerce and Industry (Sacci).
Eskom began implementing rotational power cuts this month and this will continue next week until unplanned breakdowns at its coal-fired power stations are addressed. Load shedding has had a negative impact on all sectors of the economy, from small and medium-sized enterprises to big corporations, as businesses rely heavily on a stable electricity supply.
According to Sacci’s report, released on Thursday, trade conditions remained subdued in November and in negative territory.
Sacci’s seasonally adjusted Trade Expectations Index slid from 49 points in October to 46 points in November. The seasonally adjusted Trade Activity Index, a measure of recent trade conditions, improved slightly by 1 point to 43 points in November.
Sacci said present trade activity and trade expectations were on a similar level to November last year.