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Low oil prices contributed to low economic confidence in Angola and Nigeria.
Many African economies are feeling the pressure of low commodity prices as shown by the YPO’s Global Pulse world ranking. As stated by the survey, economic confidence shows the region at its lowest in six years.
As stated by the YPO Economic confidence, Africa plunged in the final quarter of 2015, falling to its lowest level in six years, and below that of every other region in the world.
Carl Bates, a YPO member, says economic confidence was an indicator of where the region was going in the short to medium term.
“It’s completed by the top echelons of business in Africa, a group of chief executives, presidents of companies and chairmen on boards saying this is our view on business confidence in the continent,” he stated.
Bates however allayed fears over the South African economy saying figures were not so bad compared to other countries.
Salim Dewji stated heavy dependence on certain resources had impacted on confidence levels especially after the fall in commodity prices.
“If you have only depended on one resource then as countries face turbulent time, it is time for reflection,” he stated.
Economic confidence in Africa plummets to six year low
Economic confidence amongst business leaders in Africa plunged in the final quarter of 2015, falling to its lowest recorded level in six years, and below that of every other region in the world.
“The irony is that in 2013 Africa was at the highest confidence level across the YPO in the world but today we see ourselves at the lowest in comparison with global peers. This is partly due to dependency on commodities,” Dewji stated.
“The members of YPO in Kenya have come out showing much confidence in the economy which looks like they are doing better comparing to the rest of players in the region [partly due to diversification].”
Some of the countries that have registered serious confidence challenges are Angola and Nigeria with Nigeria pegged at 31 per cent compared to the regional average of 51 per cent.
Culled from: cnbcafrica.com