The third quarter of 2024 has seen a remarkable improvement in business confidence in eThekwini Municipality, with the Durban Business Confidence Index (BCI) rising for the second consecutive quarter.
This increase highlights the City’s dedicated efforts to improving service delivery, supporting economic growth, investment, job creation, and the sustainability of the Municipality.
According to the latest report for Q3 of 2024, the Durban BCI increased to 63.01, up from 55.49 in the previous quarter.
Notably, this increase represents a 41.02% year-on-year improvement, with service delivery being identified as a key factor behind the boost in business confidence.
The Durban BCI reflects the growing confidence of businesses in the City, aligning with similar trends observed in the Bureau of Economic Research report released by Stellenbosch University.
This correlation suggests that the Municipality’s strategies are aligned with broader economic improvements across the country.
Political factors continue to influence the business environment, yet a general decline in negative publicity has positively impacted perceptions.
The report further highlights improvements in the macroeconomic environment, including the stabilization of the electricity supply, the appreciation of the rand, falling inflation, and the reduction of repo rates, all contributing to the growing confidence.
A notable rise was recorded in the construction sector, which experienced a substantial recovery, likely due to government action against criminal activities affecting the industry.
The sector’s confidence rose by 23.89%, signalling that interventions by law enforcement and collaboration with the government are having a tangible impact.
Similarly, the agriculture sector reported a remarkable 75% increase in confidence quarter-on-quarter.
Interest rate expectations also showed positive trends, reflecting responses to the favourable macroeconomic conditions.
Many countries, particularly in the Eurozone, have kept interest rates unchanged, reducing economic pressure and contributing to a stable environment for businesses to thrive.
Commenting on the report, eThekwini Mayor Councillor Cyril Xaba said he acknowledges the challenges that remain in certain departments, particularly in areas such as sewerage, solid waste, and water management.
However, he has no doubt that these departments will show improvement under the tight ship being run by eThekwini City Manager Musa Mbhele.
“His stewardship has already delivered remarkable progress and successes in key areas such as service delivery of electricity, where we’ve seen significant advancements. We are committed to continuing this momentum, and I believe the positive changes we are witnessing across the Municipality will extend to these areas as well, ensuring improved service deliver for all residents and businesses,” added Mayor Xaba.
Website: www.durban.gov.za
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