south african A survey published on Wednesday showed business confidence climbed three points in the first quarter, helped by a stable government, a supportive interest rate environment and a slowing foreign exchange rate, while warning that the Middle East conflict could pose a risk.
According to the survey compiled by Rand Merchant Bank, business confidence stood at 47 points in the quarter, the best reading since 2015, barring the post-Covid recovery. Bureau of Economic Research Showed.
“Geopolitical developments, which are largely beyond South Africa's control… remain top of mind for many businesses,” said Isa Mhlanga, RMB chief economist.
President Cyril Ramaphosa echoed those concerns on Wednesday when he warned that conflict in the Middle East is already straining the African continent's supply chains and leading to higher energy prices.
Recognizing the threat, the survey indicated a supportive sentiment for the government following Ramaphosa's speech in early February, which addressed major domestic crises affecting the economy, including water shortages, widespread crime and unemployment.
“A sustained recovery in confidence will ultimately depend on strong demand, sustained policy credibility and progress on structural reforms. For now, sentiment is improving, but translating this into sustainable growth remains the key test for 2026,” Mhlanga said.
Reading: Doom catch: the case of South African withdrawal
The survey said the strengthening of the rand against the US dollar as well as stable interest rates supported the economy during the quarter. — Prerna Bedi, (c) 2026 Reuters
Get breaking news from TechCentral on WhatsApp. Sign up here.