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.
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