South African businesses show a high degree of confidence in their ability to succeed in the face of a tough economic climate.<\/p>\n
This is according to a new HSBC survey of over 8,500 companies in 34 markets.<\/p>\n
The survey was conducted between August and September and reflects sentiment among South African business some six months into the presidency of Cyril Ramaphosa.<\/p>\n
Despite the domestic economic backdrop, the HSBC Navigator survey reveals that nine out of 10 respondents in South Africa believe the near-term outlook for international trade is positive – higher than the 78% global average.<\/p>\n
A similar share of respondents (91%) feel confident their company will succeed in the current trade environment.<\/p>\n
Expectations of global economic growth and confidence in buyer\/supplier relationships were most frequently cited as key factors supporting this optimism.<\/p>\n
The top three markets targeted for expansion by South African businesses responding to the survey are Botswana, the United States and Mozambique.<\/p>\n
Relatively few respondents identified the US-China trade dispute as having an adverse influence on their outlook. Instead, concerns were more frequently centred around the exchange rate and the deterioration in domestic economic conditions.<\/p>\n
The clear majority (70%) of South African businesses believe global protectionism is on the rise, although they do not cite this as a major concern for their company\u2019s prospects for foreign trade.<\/p>\n
About two thirds (65%) of South African businesses think that relevant industry\/sector related free trade agreements (FTAs) will be helpful in the next three years.<\/p>\n
The Navigator survey also shows that, globally, more than half of companies (51%) expect that free trade agreements, where they apply to their country and industry, will benefit them over the next three years.<\/p>\n
FTAs are particularly popular in emerging markets, with 60% of firms in these countries saying they will have a positive impact, compared to 45% of firms in developed markets.<\/p>\n
\u201cSouth African businesses are staying positive in the face of some of the most challenging economic conditions seen here for some years, said Mark Stadler, CEO of HSBC South Africa.<\/p>\n
“The ability to remain focused in volatile circumstances has long been a characteristic of local business leaders and underpins their optimism compared to counterparts in other countries.<\/p>\n
“It is also encouraging to note that South African businesses are prioritising digitalisation and data analytics as drivers of growth and efficiency.”<\/p>\n