JOHANNESBURG, April 21 – Business confidence in South Africa declined to a five-month low in March, reflecting mounting pressure from currency weakness, slowing trade and global uncertainty linked to the Middle East conflict.
Data from the South African Chamber of Commerce and Industry showed its Business Confidence Index fell to 131.3 in March from 134.6 in February, signaling growing unease among firms.
The chamber said weaker real economic activity was evident across key sectors, with retail trade and export volumes coming under strain. Businesses also flagged concerns over the cost and reliability of energy supplies, as geopolitical tensions continue to disrupt global markets.
A weaker rand and declines in share prices further weighed on sentiment, underscoring how external shocks are feeding into domestic economic conditions.
Despite the downturn, some positive indicators helped cushion the decline. Increased vehicle sales, a rebound in international tourism and lower inflation provided support to business confidence during the period.
South Africa had entered the year with improving momentum, supported by stronger investor sentiment and government efforts to maintain low inflation and stabilize public finances. However, the outlook has become more uncertain, with earlier growth projections of 1.6% for 2026 now likely to be revised.
While the impact of the Iran conflict is beginning to show, the chamber noted that the surge in confidence recorded late last year is still helping to soften the blow for Africa’s most industrialized economy.
