According to Reuters, South African business confidence experienced another sequential decline in the third quarter of 2025, dropping to 39 points as companies grappled with substantial U.S. trade tariffs imposed on the nation's exports.
The latest quarterly survey, jointly conducted by Rand Merchant Bank and the Bureau of Economic Research, revealed confidence levels now sit three points beneath the historical average of 42 points. The polling period, which ran from August 6-25, captured the initial impact of new 30% tariffs'representing Sub-Saharan Africa's steepest rate'applied to exports flowing from Johannesburg to U.S. markets.
The automotive industry bore particular strain during this period, with manufacturers reporting order cancellations and temporary production halts as the tariff effects rippled through supply chains.
RMB Chief Economist Isaah Mhlanga contextualized these challenges within a broader global framework, noting that South Africa's business climate mirrors patterns observed across other economies navigating post-2024 political and policy transitions.
"The excitement'or disappointment'that followed last year's sweeping political and economic policy shifts in numerous countries, South Africa included, is giving way to a more normalized but challenging emerging global landscape," Mhlanga explained.
Contrasting data emerged from a separate Wednesday survey indicating marginal improvements in South African business operating conditions during August, primarily driven by reduced cost pressures on companies.
Meanwhile, currency markets provided some relief as the South African rand surged to nine-month peaks in late August. The rally was fueled by dollar weakness and recovering gold prices, with momentum building after Federal Reserve Chair Jerome Powell's hints regarding potential September rate cuts.
