THE imminent end of the National State of Disaster after two years will help boost business sentiment, and ease trade conditions towards a more favourable level.
The government has extended the State of Disaster for the last time to end on March 15, as the country turns the corner on Covid-19 amid a rising number of vaccinated population.
The SA Chamber of Commerce and Industry (Sacci) yesterday said that trade conditions had continued to improve in January, after an uncertain second-half of 2021.
According to Sacci, the Trade Activity Index (TAI) remained in expansionary territory, climbing to 54 points in January from 51 points in December.
Sacci said that the January reading showed that when seasonal factors were considered, trade conditions were in an upwards trend since October.
Sacci chief executive Alan Mukoki said the disruption and mayhem in July, 2021 had a negative impact on trade, but it also accelerated the recovery and inspired resilience in communities and businesses.
Sales volumes and new orders were at or above the 50-index mark in January, indicating greater certainty, while expectations for these elements were well above the 60-points mark.
Mukoki said respondents were also well-stocked and expected supplies were stable, while positive expectations for all other trade components remained well above the 50-index level.
“Expectations remained strongly positive, with 63 percent of respondents anticipating improved trade conditions in the next six months,” Mukoki said.
“Jobs in the trade environment have remained tight and negative, despite the fact that more employment is expected in the next six months as economic and trade conditions normalise. The end of the State of Disaster will ensure even more favourable trade conditions.”
However, Mukoki said that load shedding, water-supply disruptions, protests, logistical issues, and transport strikes were among the most pressing external factors impeding trade conditions.
He said consumer confidence-levels remained uncertain and depressed since the July 2021 unrest and looting, and with many clients from the informal market.
“Municipal infrastructure failure has put additional strain on business profit margins and viability. The general complaint continues to be the lack of law and order,” he said.
BUSINESS REPORT ONLINE