AFRICANGLOBE – Business confidence in Africa remains the highest in the world, according to the, annual YPO Global Pulse Confidence Index for Africa.
Business confidence, which in essence refers to confidence among African business leaders about business conditions in the continent, had leapt more than six points in the fourth quarter of last year.
However, the index stayed largely unchanged during the first quarter of this year, moving down a third of a point to 67.3.
“The emergence of a new consumer class across the African continent is creating many exciting opportunities in the region, despite the unavoidable challenges that come from doing business in frontier markets,” said
Khutso Mampeule, chairman of South African-based Lefa Group Holdings, which chairs YPO’s Africa Region, attributed this sound business confidence to the emergence of a new consumer class throughout the continent.
“The emergence of a new consumer class…has created many exciting opportunities in the region, despite the unavoidable challenges that come from doing business in frontier markets,” Mampeule said.
Lefa Group is also a member of the YPO Johannesburg Chapter.
“Given the continuing inflows of foreign direct investment and the African GDP growth rates, it’s no surprise that Africa tops the list of the world’s most confident regions,” Mampeule was quoted as saying on Moneyweb.
It is understood that on a quarterly basis, the African region has constantly led the world in all but one quarter since the launch of the survey in July 2009.
According to the annual survey, developments in South Africa highly prompted the positive business outlook in Africa. South Africa has the highest weighting in the region’s index.
CEO confidence in South Africa crept up a third of a point in the first quarter of this year to 68.3. This is said to be its highest level since January 2010.
Meanwhile, according to the survey, Nigerian business confidence, which has the second-highest weighting after South Africa, sagged more than 4 points to settle in the low 60s.
By: Mzwandile Jacks