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 shortterm 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-tomonth 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.