March sees a rise in business confidence, fuelled by tourism, exports despite global risk

IN MARCH South Africa's business environment reflected a sustained improvement in sentiment that began in June 2024, driven by stronger economic prospects.

- YOGASHEN PILLAY

The South African Chamber of Commerce and Industry (Sacci) Business Confidence Index (BCI), released on Wednesday, climbed from a low of 107.8 in May 2024, during the national elections, to a high of 125.8 in February 2025, before slightly easing to 123.5 in March 2025.

This March 2025 figure still marked an 8.8-point improvement over March 2024, with the first-quarter 2025 BCI averaging 123.1, compared to 113.9 in the same period of 2024.

Sacci said, "The most positive short-term impacts on business sentiment in March were caused by increased tourism and exports, and lower inflation. Fewer imports, a weaker rand against the major trading and investment currencies, and declining share prices on the JSE imposed the largest negative month-to-month impact on business confidence."

The Sacci BCI also kept to the improved year-on-year levels in February and March 2025. "Increased inward tourist numbers, more new vehicles sold, and lower inflation were the main contributors to the enduring positive business sentiment compared to a year ago.