The latest edition of LMD magazine reports that the LMD-Nielsen Business Confidence Index (BCI) moved up from 85 in October to 110 in November, representing the highest jump by 25 basis points.
Although this proved to be a flash in the pan with a reversal of 46 basis points a month later.
“Political instability remains one of the biggest national and business concerns; but businesses feel that there would be measures towards improving the ease of doing business by whichever regime assumes power next,” says Nielsen’s Managing Director Sharang Pant.
According to the magazine, the seismic shift in power or attempt to establish such a changeover on the political platform with a new administration being sworn in, even as the incumbent steadfastly refused to cede what it claimed was its rightful position in parliament, has certainly had a ripple effect on multiple fronts.
While some stopped at describing the goings on as a constitutional crisis, others charged that what transpired was in fact a constitutional coup albeit sans the use of weapons or widespread bloodshed.
It may come as a surprise therefore, that amid the constitutional impasse and ugly political wrangling at the time, business confidence has been restored in no uncertain terms – although importantly, it should be noted that the latest LMD-Nielsen Business Confidence Index (BCI) survey was conducted during the first week of November, which was in the immediate aftermath of the president’s appointment of a new prime minister on October 26 but before the dissolution of parliament on November 9 and what has transpired since then, LMD revealed.
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