South African business confidence slipped a point further sequentially in the third quarter of 2025, weighed down by hefty US tariffs on the country’s exports, a survey showed on Wednesday.
Business confidence fell to 39 points, three points below the long-term average level of 42, according to a survey by the Rand Merchant Bank and compiled by the Bureau of Economic Research.
The survey, conducted from August 6-25, coincided with the start of the 30% tariff — Sub-Saharan Africa’s highest rate — on South Africa’s US exports and was also marked by cancellations and production breaks in the country’s automotive sector.
But South Africa’s business experience in recent quarters was not out of line with other economies, according to Isaah Mhlanga, chief economist at RMB.
“Last year brought significant political and economic policy changes in many countries, including South Africa, and after initial excitement, or in some cases, disappointment, conditions are normalising into a difficult emerging global world order,” Mhlanga said.
However, another survey published on Wednesday showed South African businesses experienced a very modest improvement in operating conditions in August as cost pressures eased.
Separately, the rand hit a nine-month best level in late August, boosted by a weaker dollar and rebound in gold prices, after US Federal Reserve chair Jerome Powell pointed to a possible rate cut at the central bank’s September meeting.
Reuters
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