SA business optimism wanes in March on Iran conflict

South African business confidence moderated in March as the US-Israeli war with Iran roiled financial, commodity and foreign-exchange markets.

A measure of sentiment compiled by the South African Chamber of Commerce and Industry dropped to 131.3 from 134.6 in the previous month, it said in a statement on Tuesday.

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The decline “was mainly the result of a more volatile and weaker rand exchange rate, lower share prices on the JSE, the lower global price of precious metals, and decreased volumes of merchandise imports,” it said. “These declines were mainly owing to exogenous developments pertaining to the war in the Middle East.”

Since the conflict began on February 28, the rand has shed some of its previous gains — at one point weakening to below R17 per dollar — while the benchmark FTSE/JSE All Share Index has fallen 10%.

Chief among the concerns of the business sector were lower volumes of foreign merchandise trade, restrained retail trade sales, and the higher cost of energy, the chamber said.

Despite the dip in the main index from the prior month, it increased 6.3% year-on-year basis, boosted by increased tourism and higher precious metal prices, the SACCI said.

“Increased new vehicles sales, more overseas tourists, and lower inflation had a notable positive impact on business confidence in March 2026,” it said.

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