AFRICA has emerged the most business-confident region in the world, as hopes of global economic recovery rises, according to new findings from the Global Economic Conditions Survey (GECS).

  The survey, put together by the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants (IMA), is the largest quarterly economic survey of accountants in the world.

  The survey, which also aggregates the views of ACCA and IMA finance professionals working at the coal face of businesses, noted that in the second quarter of the year, the Sub-Saharan African region had managed inflation and volatile flows of funds that challenged policymakers in late 2012.

  It explained that though 32 per cent of respondents from Africa’s business community expressed pessimism, it was an improvement from the 40 per cent recorded earlier this year, while 41 per cent was confident, up by seven percentage points from the previous quarter. 

  Also, perceptions of the economic recovery in general were up, with 60 per cent reporting an optimistic outlook, against 51 per cent earlier this year.

  Senior Economic Analyst at ACCA and editor of the GEC Survey, Emmanouil Schizas, said: “Globally, this is not a recovery for everyone, but for significant parts of the world, it looks like the real thing. If this newfound dynamism persists beyond a couple of quarters, it could build its own momentum independent of monetary policy. And looking at Africa, it has reclaimed its place as the most confident of the major world economic regions.

  “Despite continued positive news about the global and national economies, the GECS business confidence index has only inched in the right direction. After a surge in business confidence in first quarter that was perhaps a little premature, confidence levels are now in line with fundamentals.

  “What is encouraging is that the marginal improvement in global business dynamism in early 2013 has now accelerated across all measures of investment, orders and employment. Employment in particular is recovering quickly and is now stronger than at any point in the last two years.”

  Director, Sub Saharan Africa, ACCA and Africa spokesperson, Jamil Ampomah, said: “While this is a massive continent, GECS’ findings resonate across the whole of Africa and the worst challenges of late 2012 appeared to have been overcome. 

  “Investment in capital and people among African businesses remained stable over the first half of the year. Demand and cash flow pressures eased significantly in the second quarter of 2013, after rising unevenly for about a year.

  “Access to business and investment opportunities, as well as growth capital improved both year-o- year and quarter-on-quarter, while the authorities in Africa have got inflation and capital flows in and out of the region under more control. 

  “The finance teams in Africa’s businesses are clearly seeing a more positive future for their own organisations and particularly for the wider economy.”

Posted on : 30 Nov,-0001