According to a survey by Rand Merchant Bank and the Bureau of Economic Research, South African business confidence dropped in the third quarter of 2025 to 39 points, which is a decrease of one point from the previous quarter. The decrease was mainly caused by 30% U.S. tariffs on South African exports, the maximum rate imposed on Sub-Saharan Africa.
The survey conducted from August 6 to 25 indicated that the confidence level was three points lower than the long-term average of 42 points.
The implementation of U.S. tariffs and production disruptions in the South African automotive sector, including order cancellations and manufacturing breaks, were some of the events that occurred during the period.
Chief Economist at RMB Isaah Mhlanga observed that South African business experience was in line with global trends. He mentioned that after the initial reactions to the changes in political and economic policies worldwide, the situation was stabilizing in a difficult global environment.
Anyway, the survey released the same day, apart from the overall confidence, found that South African businesses had a slightly better operating conditions in August as the cost of pressure had diminished.
The South African rand hit its highest point in nine months in late August, the main factors for the rise were a weaker dollar and higher gold prices after the signals of possible rate cuts by the U.S. Federal Reserve.
