Business confidence remained steady in July; this was according to the South African Chamber of Commerce and Industry (SACCI) Business Confidence Index (BCI),
Business confidence has been under pressure in 2026 due to rising fuel prices and inflation linked to the ongoing Middle East tensions, as well as structural problems in the economy.
SACCI stated that the BCI was 125.4 in July 2026. “The BCI was still 8.7 index points higher than in July 2025. The most significant positive monthly impacts on the BCI in July were due to the number of new vehicle sales, merchandise export volumes, and lower energy prices.”
SACCI added that a substantial negative impact on the BCI was made by higher inflation and the decrease in global precious metal prices.
“It was only higher inflation that had a notable negative effect on business confidence in July compared to July 2025. The number of overseas tourists remains a major positive driver for business confidence despite short-term instability.”
SACCI said that the business climate was further sustained by the continuing high global price of precious metals, increased merchandise import volumes, and the exceptional increased number of new vehicles sold.
“The South African economy continues to be affected by the consequences of the war in the Middle East as well as domestic economic performance and policy matters.”
SACCI added that ratings regarding South Africa’s creditworthiness and investment improved, but a stricter Reserve Bank's Monetary Policy stance and slow economic growth emphasise the impact of the uncertainty created by the present inflationary process.
“International commodity prices played a major role in the trade environment and business climate of South Africa. There was the positive effect from precious metal prices but also the negative effect of the crude oil price.”
SACCI said that in dealing with the AGOA agreement, agriculture producers had to contend with reaching favourable deals for specific produce.
“Although the South African economy must deal with slow performance and other structural challenges, the inflationary trend and the fiscal challenges remain despite continuous efforts to address the economically unsustainable demands for social adherence.”
SACCI concluded that serious attention is needed for especially the dire straits some local governments find themselves
yogashen.pillay@nationalmg.co.za
THE NATIONAL