South African business sentiment deteriorated further in the third quarter of 2025, falling one point to reach 39, well below the long-term benchmark of 42 points, as punitive US tariffs took their toll on exporters, Reuters reported on Wednesday
The quarterly confidence index, published by Rand Merchant Bank in partnership with the Bureau of Economic Research, captured responses from businesses surveyed between August 6 and 25, a period that coincided with the implementation of steep 30% US tariffs on South African exports, the highest rate imposed on any sub-Saharan African nation.
Manufacturing sectors, particularly automotive production, felt immediate pressure from the trade measures, with companies reporting both order cancellations and forced production suspensions as demand softened.
Despite the challenging domestic conditions, RMB's Chief Economist, Isaah Mhlanga, emphasised that South Africa's business environment reflected broader global trends rather than isolated difficulties.
"We're witnessing the normalisation phase following last year's wave of political and economic policy transformations across multiple countries, including South Africa. The initial reactions, whether optimistic or pessimistic, are settling into what appears to be a more challenging emerging world economic order," Issah observes.
However, competing data released simultaneously on Wednesday suggested modest gains in South African businesses’ operating conditions throughout August, with companies benefiting from diminishing cost inflation pressures.
Financial markets offered additional encouragement as the rand climbed to its strongest position in nine months during late August trading. The currency's rally was supported by US dollar weakness and a resurgence in gold prices, with investor sentiment bolstered by Federal Reserve Chair Jerome Powell's signals regarding potential interest rate reductions at September's policy meeting.
(Picture: Unsplash)
For decades, buying a car has been as much about emotion as practicality. Shiny brochures, polished showroom floors and persuasive sales talk often overshadowed the cold, hard numbers of ownership. But today, where information is currency, consumers are no longer satisfied with glossy marketing – they want data, and they want it now.
According to a Reuters report, South Africa is engaged in discussions with Chinese automotive manufacturers to encourage local investment, with at least one company showing considerable interest in establishing production facilities in the country, a senior government official revealed on Wednesday.
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A light on my car’s dashboard came on, and instead of fixing the problem, I waited for the bulb to burn out. Crisis solved.
Jarod Kintz
For decades, buying a car has been as much about emotion as practicality. Shiny brochures, polished showroom floors and persuasive sales talk often overshadowed the cold, hard numbers of ownership. But today, where information is currency, consumers are no longer satisfied with glossy marketing – they want data, and they want it now.
According to a Reuters report, South Africa is engaged in discussions with Chinese automotive manufacturers to encourage local investment, with at least one company showing considerable interest in establishing production facilities in the country, a senior government official revealed on Wednesday.
Europe’s automotive sector, once a global leader, is facing what McKinsey describes as “the largest transformation in the industry’s history”.
