South Africa’s short-term business conditions continue to improve, and signs of this improvement are starting to be mirrored in data like retail sales. Businesses should continue to see better market conditions and improved profitability – from a potentially low starting point.

Unfortunately, the divergence between buoyant short-term conditions and adverse long-term conditions persists. This situation reflects the reality that the GNU has failed to meaningfully rejuvenate the country’s economic trajectory. Businesses should still react by positioning defensively around future expansion and investment decisions.