FX.co ★ South Africa Business Confidence Ticks Higher: SACCI

The South African Chamber of Commerce and Industry (SACCI) reported a rise in its business confidence index to 115.8 in May 2025, up from a six-month low of 114.9 recorded in the previous month. This modest upturn is attributed to a strengthened rand, robust equity markets, and increasing prices of gold and platinum. The earlier dip in the index was likely due to concerns over US trade policies, particularly with former President Trump’s threat to impose 30% tariffs. As the United States stands as South Africa’s second-largest trading partner after China, such potential actions present considerable risk. In response, the South African government has initiated a series of trade proposals following President Ramaphosa's recent discussions with President Donald Trump. South Africa is currently revising its offer to purchase American LNG after the initial bid was declined and is contemplating the adoption of US technology to bolster its domestic gas production.