Despite a decline in the Durban Business Confidence Index for the first quarter of 2025, there is an underlying optimism among business leaders, which is largely due to the proactive interventions being put in place to revitalise the city.

The latest Durban Business Confidence Index (DBCI) report, which is compiled by the Macroeconomics Research Unit at the University of KwaZulu-Natal, was released on Tuesday.

The index dropped from 60.74 in the fourth quarter of 2024 to 56.32 in the first quarter of 2025.

“This represents a quarter-on-quarter (Q-o-Q) 7% decline in confidence in the Durban business climate, marking a second consecutive decrease in business confidence.”

However, the report noted that “the mood remains positive, indicating the efficacy of the interventions aimed at rehabilitating the city”.

On a year-on-year basis, business confidence showed strong improvement, rising 47% from 38.42 in the first quarter of 2024 to 56.32 in the same period of 2025.

The report also said that the Durban BCI diverged from the national BCI, which remained unchanged at 45. “These differences reflect variations in the timing of data collection. The national data was collected in February, while the City’s data was gathered in the last two weeks of March.”

Service delivery issues remain a key concern for businesses. “70% of the respondents (compared to 57.6% in the previous quarter) reported that if they (or anyone) complained about poor service delivery, it is unlikely that the local municipality would deal with it within a reasonable time frame.”

Sector-specific confidence varied. Business confidence in the agricultural sector is exceptionally high, with the industry registering 83.10 points in the first quarter of 2025. Manufacturing rose 11% quarter-on-quarter and 55% year-on-year. In contrast, the wholesale and retail trade recorded a sharp decline in confidence of 35%.

The construction and financial sectors also saw declines, while agriculture recorded the highest level of confidence at 83.10 index points.

The report said businesspeople remain optimistic about business conditions in the city. It said this resilience is partly due to the interventions by President Cyril Ramaphosa who established the Presidential eThekwini Working Group (PeWG).

THE MERCURY