The South African Chamber of Commerce and Industry (Sacci) reports that Cyril Ramaphosa’s election as ANC president in December 2017 was a key factor in boosting business confidence in January. The business confidence index is now at a two year high.

Business Day reports Sacci’s business confidence index (BCI) increased by 3.3 index points in January to 99.7 following on the improved business mood in December, which increased to 96.4 from 95.1 in November. It increased by two index points compared to the same period the year before.

"Apart from a more improved and positive business mood, there are indications from various short-term economic and market indicators that the pace and direction of change reflects a more upbeat business climate," Sacci said.

Ten of the 13 sub-indices had positive month-on-month changes while three were negative.

"There is the expectation that new leadership will lead to more pragmatic and predictable business and economic policy options. Although the present business confidence carries a great deal of positive sentiment, the investment environment will benefit most from this sentiment to enhance sustainable economic growth and employment prospects," it added.