As with building activity, this may have helped encourage private business investment activity that might otherwise not have been
forthcoming.

With 70% of businesses in South Africa anticipating a rise in profitability in the upcoming 12 months, there is an overall increase in intentions for future business investments with regard to investment in staff skills and new buildings. There was a marked decrease with regard to the planned investment in plant and machinery.

 

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Encouragingly, investment is continuing its recovery

H1 2023 GDP growth exceeded expectations due to a continued increase in gross fixed capital formation (GFCF), which had declined for almost a decade until late 2021.

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An additional stimulus for economic expansion

A boost to economic growth is expected from other multibillion-rand infrastructure projects outlined by the government.

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South African Macroeconomic Overview& IBR Results – H1 2023
Constraints to business growth