Sacci warns of worsening trade conditions despite low inflation boost

THE South African Chamber of Commerce and Industry (Sacci) has sounded the alarm over deteriorating trade conditions, with its August 2025 Trade Survey showing only 40% of respondents reporting a positive overall trade experience. Released on Thursday, the survey highlights how global trade uncertainty, weak domestic economic growth, and persistently high unemployment are combining to erode business confidence.

- YOGASHEN PILLAY

Sacci noted that trade sentiment had briefly improved in July following interest rate cuts and the monetisation of pension fund investments, which temporarily boosted household disposable income. However, these gains proved short-lived. “The reality of the real economy under considerable stress and its effect on trade resurfaced strongly in August,” Sacci said.

In May, 69% of businesses expected trade conditions to improve in the next six months. By August, that optimism had slipped to 58%, with concerns growing around weaker sales volumes and rising input costs. Sacci warned that both local and global companies reducing their exposure to South Africa was a worrying sign.