South African Business Pulse - H2 2022

Investment Prospects

Alex Philippou
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South African businesses are faring well in pushing for new capacity and this is contrary to trends observed globally.

The upturn in investment reflects optimism on recovery as most businesses curbed their investment plans with the advent of COVID-19. As COVID-19 subsides with a perceived return to 'normalcy', there are stronger prospects to improve capacity and invest in plant and machinery as well as buildings. Investments in Research & Development as well as Technology are also being sustained.

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While 70% of South African businesses expect an increase in profitability over the next 12 months, future business investment intentions are down across the board. Alex Philippou - IBC Director 



Technology investment is the key area businesses are focused on, cited by 53% of EMEA businesses (down from 54% in H1 2022), followed by investment in staff skills at 50% (down from 52% in H1 2022) and investment in research and development at 46% (down from 48%), however, investment in new buildings and machinery have picked up momentum in term of what the mid-market business would invest in post-Covid-19 and that is due to the base set during the Covid-19 pandemic.

Investment expectations in South Africa