Transcript Business Leaders Confidence Index (Uganda)

Zambia Business Leaders
Confidence Index
Survey Conducted:
1st – 30th November 2009
Presentation Date:
10th December 2009, Golfview
Hotel, Lusaka
© 2009. Synovate Ltd. All rights reserved.
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The concepts and ideas submitted to you herein are the intellectual property of
Synovate Ltd. They are strictly of confidential nature and are submitted to you under
the understanding that they are to be considered by you in the strictest of confidence
and that no use shall be made of the said concepts and ideas, including
communication to any third party without Synovate’s express prior consent and/or
payment of related professional services fees in full.
Introduction
The Business Leaders Confidence Index collects
information on business leaders’ perceptions
towards the economy in general and their sectors
specifically across selected African countries.
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1
Research Methodology
•
100 MDs, Directors, CEOs drawn from cross section of sectors in
Zambia
Target group
Data Collection
Africa Coverage
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•
Self – completion Questionnaire
Data collection dates 1st - 30th November 2009
•
The study is also carried out in Kenya, Uganda, Tanzania, Ghana and
Nigeria
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2
Sample Structure
Sector
Respondents (November)
1
Agriculture
11
2
Automotive
9
3
construction
9
4
Financial Services
13
5
Hotel & Tourism
10
6
ICT/Media/Telecommunication
10
7
Manufacturing
13
8
Services
15
9
Others (Energy& Mini
10
TOTAL
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100
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Computing BLCI
BLCI is a composite index calculated from 3 key
indicators;
•
Current economic conditions vs. 6 months ago
•
Economic expectations 6 months ahead
•
Own industry expectations 6 months ahead
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The percentage of Respondents in each Sector
July
Others, 6%
November
Others (
Energy
&Mining),
10%
Agriculture,
10%
Automotive
, 9%
Services,
13%
Manufactur
ing, 10%
Agriculture ,
11%
Automotive,
9%
Services,
15%
construction
, 9%
Constructio
n,11%
Manufacturi
ng, 13%
ICT/Media/
Teleco’s,
13%
Hotel &
Tourism,
14%
Financial
services,
15%
Base = 80 respondents
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ICT/Media/T
elecommuni
cation, 10%
Financial
Services,
13%
Hotel &
Tourism,
10%
Base = 100 respondents
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5
Zambia’s Economic
Conditions
Current Economic Conditions
How would you rate the economic condition in Zambia today as compared to 6months ago?
November
July
44% of the
Moderately Better
Substantially better
Same
24%
Moderately Better
5%
Substantially better
18%
36%
8%
Same
25%
respondents rated the
economic conditions in
Zambia to be
moderately &
Substantially better
than they were 6
months ago compared
29%
to
in last
survey. However
25% still think the
Substantially worse
Moderately worse
Substantially worse
11%
Moderately worse
43%
0% 20% 40% 60% 80%100%
Base = 80 respondents
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6%
economy will remain
the same.
25%
0% 20% 40% 60% 80%100%
Base = 100 respondents
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7
Future Outlook
How do you expect Zambia’s economy to perform in the next 6 months?
July
November
53%
Moderately Better
Substantially better
39%
10%
Same
Substantially worse
Moderately worse
Moderately Better
Substantially better
Substantially worse
19%
Moderately worse
49% in
6%
Same
28%
5%
47%
of the
Business Leaders,
foresee Zambia’s
economy improving in
the next 6 months,
Compared to
the last survey.
27%
27%
However
still
think it will remain the
same.
6%
14%
0% 20% 40% 60% 80%100%
0% 20% 40% 60% 80% 100%
Base = 80 respondents
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Base = 100 respondents
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Economic Conditions
of Zambian Sectors
Current Economic conditions in Zambia (Sector)
How would you rate the current overall performance of your industry or sector as compared to 6months
ago?
November
July
Moderately Better
Substantially better
Same
Substantially worse
21%
Moderately Better
11%
Substantially better
20%
Same
19%
16%
Substantially worse
13%
Moderately worse
Moderately worse
42%
62% of the Business
Leaders are of the view
that their industry
performance is better .
This is a significant
increase from the same
view held in July:
32%.
4%
15%
39%
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
Base = 80 respondents
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Base = 100 respondents
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10
Future Outlook for all sectors
How do you expect your industry to perform in the next 6months?
July
Moderately Better
November
62% of the Business
21%
Moderately Better
Substantially better
11%
Same
Substantially better
20%
Same
19%
13%
Moderately worse
Substantially worse
Moderately worse
39%
0%
20%
40%
60%
80% 100%
Base = 80 respondents
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Leaders are optimistic
that the performance of
their own industry will
be better in the next
6months. Last survey
32% held this
16%
Substantially worse
42%
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only
view .
4%
15%
0% 20% 40% 60% 80% 100%
Base = 100 respondents
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Business Leaders Confidence Index – Zambia
ZAMBIA BLCI Sector Comparison (November)
100
90
80
70
70.37 68.59
60
61.67 61.54 60.56
58.33
58.92
Construction sector; which
registered the highest index points
11.45 points
40
stands at
higher than the overall index while
Automotive sector, which registered
the lowest index points stands at
30
14.48 points below the
20
overall confidence index.
52.5
50
48.48
44.44
10
0
Base = 100 respondents
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Zambia BLCI Index – Trend
BLCI Zambia Trend
100
90
80
Zambia’s Business Confidence
71
70
60
58
59
3months (last Survey conducted in
July). It is however below level
registered in July-07.
56
50
gained more
than 10 points in the past
Index has
48
40
30
20
10
0
Dec-05
May-06
July-07
July-09
Nov-09
Base = 100 respondents
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Global Economic Crisis - Mitigation Strategies
As a result of the global economic turmoil, which of the following, if at all, have you done to mitigate
this turmoil’s impact on your Company performance?
July
November
Focusing more on cost
cutting
Lauch new
products/services
Expansion to new LOCAL
markets
Cut back on capital
spending
Focusing more on
cost cutting
Expansion to new
LOCAL markets
Launch new
products/services…
Cutting back on
capital spending
71%
50%
49%
48%
Restructuring
45%
Expansion to new
FOREIGN markets
Mergers/acquisitions/partn
erships
Cutting back on
innovatios, R& D
No change any of our
strategies
24%
18%
13%
5%
0%
50%
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• Expansion into new
45%
55%
LOCAL markets
(last survey 49%)
45%
• Launching of new
products and services
40%
Mergers/acquisitions
/partnerships
Expansion to new
FOREIGN markets
Narrowing/cutting
back on…
No change in any of
our strategies in…
100%
81% (last survey 71%).
55%
Restructuring
Base = 80 respondents
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81%
•Cost cutting remains the
preferred strategy at
45% (last survey 50%).
16%
16%
8%
5%
0%
50%
100%
Base = 100 respondents
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Attractiveness as an
Investment Destination
for Foreign Investors
Attracting Foreign Direct Investors (FDIs)
How attractive is Zambia today as an investor destination to foreign investors?
July
November
Not
attractive
at all, 14%
Very
attractive,
14%
Not
attractive at
all
7%
Very
attractive
32%
Moderately
Attractive
61%
Moderately
attractive,
73%
Business Leaders maintain their high level of confidence, that Zambia is an attractive destination for
foreign investors
Base = 80 respondents
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Base = 100 respondents
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Factors that determine
Foreign Investment in
Zambia
Factors attracting foreign direct investment in Zambia
What factors do you think are the most important in
determining foreign investment locations in
Zambia?
Top of the list in terms importance of
determining FDI in Zambia is
domestic economic situation, at
omic situation
35%
35% followed by economic policy
Economic policy
and tax investment incentives. The
domestic economic situation include
currency stability, inflation, prices
etc.
23%
Tax investment incentives
16%
Availability of natural resources
8%
Domestic political scenario
6%
State of infrastructure
4%
0%
20%
40%
60%
80%
100%
Base = 100 respondents
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18
Impact of Politics on
Zambia’s Business
Environment
Politics – Impact on Business Environment
Looking at the political landscape in Zambia at the moment, to what extent do you think its
conducive for doing business?
November
July
Not
conducive
at all, 18%
Very
conducive,
25%
Moderately
conducive,
58%
Political climate remains moderately conducive for doing business.
Base = 80 respondents
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Not
conducive
at all
15%
Very
conducive
29%
Moderately
conducive
56%
Base = 100respondents
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20
The Citizen Economic
Empowerment Fund
The Impact of the Citizen Economic Empowerment Fund
How beneficial is the Citizen Economic empowerment Fund to the Business
environment in Zambia?
61% - Impact of
Not beneficial at all
21%
Very Beneficial
18%
Economic
Empowerment Fund is
viewed as beneficial to
Zambia’s overall
business environment.
Beneficial
61%
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22
Thank You
Our Curiosity Is All Yours.
© 2009. Synovate Ltd. All rights reserved.
Steadman now Synovate
© Synovate 2008
The concepts and ideas submitted to you herein are the intellectual property of
Synovate Ltd. They are strictly of confidential nature and are submitted to you under
the understanding that they are to be considered by you in the strictest of confidence
and that no use shall be made of the said concepts and ideas, including
communication to any third party without Synovate’s express prior consent and/or
payment of related professional services fees in full.