South Africa’s short-term business conditions continue to improve, a welcome outcome for businesses that have struggled since hard lockdown. Businesses should start to see better (but still challenging) market conditions and improved profitability from what is likely a low base.

Unfortunately, the divergence between buoyant short-term conditions and highly adverse long-term conditions persists. This situation reflects the reality that the GNU has failed to enact any pro-growth legislation or make decisive changes to the long list of domestic headwinds. Businesses should still react by positioning defensively around future expansion and investment decisions.