The Agbiz/IDC Agricultural Business Confidence Index has recovered by ten points after experiencing a sharp decline to its lowest level since the 2009 global financial crisis in the second quarter of 2024.
According to a report released by the Agricultural Business Chamber, the index increased by ten points to reach 48 in the third quarter of the year.
The extreme pessimism in the previous survey was partly due to election-related uncertainty. The formation of the Government of National Unity (GNU) appears to have eased that concern. The focus is back on fundamental agricultural matters, the report noted.
While the improvement in ACI to 48 points is encouraging, it is below the neutral 50-point mark, implying that South African agribusinesses remain somewhat concerned about business conditions.
The recent drought in the 2023-24 summer crop, poorly maintained road infrastructure, weak municipal service delivery, persistent animal disease challenges, and heightened geopolitical tensions remain the primary concerns for the sector.
In addition, the report noted that while organised agriculture continued to build a productive relationship with Transnet, there remained room for improved port efficiency.
The survey was conducted in the first week of September, covering businesses operating in all agricultural subsectors across South Africa.
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