Johannesburg, Dec 10 (IANS): Business confidence has significantly improved in South Africa since the formation of the Government of National Unity (GNU) in June 2024, the South African Chamber of Commerce and Industry (SACCI) said on Tuesday.

SACCI released its Business Confidence Index (BCI) on Tuesday following a survey of the business community across various sectors. The latest survey indicated that business confidence has improved on a monthly, annual and six-month basis. South Africa held elections in May 2024, which resulted in no outright winner and led to the formation of the GNU by 10 political parties.

"The broader political representation in the administration of the national government has facilitated a positive assessment of economic prospects by businesses. This positive assessment has spilled over into the business climate, improving sentiment and stability," SACCI said in a statement, Xinhua news agency reported.

The chamber said the BCI has improved steadily since the formation of the GNU, rising from a low of 107.8 in May 2024 to 118.1 in November 2024. Over the year to November 2024, the BCI improved by 6.6 points.

"SACCI's BCI increased by 6.6 index points year-on-year in November 2024 -- the largest year-on-year improvement for a single month since Covid-19 restrictions were lifted in December 2022," SACCI said, noting that increased tourist arrivals, higher precious metal prices and stronger new vehicle sales made the most notable positive contributions to the BCI in November.

However, the survey also found that lower merchandise import volumes had the only significant negative impact on the BCI.

"SACCI noted with concern and disappointment the slow economic growth of 0.4 per cent year-on-year for the first nine months of 2024, which reflects the challenging situation the South African economy finds itself in," the statement said, adding that nonetheless, the strong upward momentum in business confidence confirms the private sector's resolve and commitment to improving economic performance.

The business chamber further emphasized the need for greater public-sector efficiency to complement private-sector efforts. "A collaborative effort between businesses and the public sector could translate improved business confidence into stronger investor confidence, sustainable economic growth, and job creation," it said.