Business confidence in Durban has declined for a second consecutive quarter, driven by a confluence of inflationary pressures, geopolitical tensions, and rising fuel costs.
The downturn in sentiment is further exacerbated by ongoing migration-related protests that have disrupted local commerce and supply chains.
The slump in confidence reflects broader structural headwinds facing the region, including persistent electricity and water challenges that continue to hamper operational efficiency.
These utility constraints, combined with the social unrest, are creating a difficult environment for local enterprises to maintain growth momentum.
This development aligns with earlier warnings from Standard Bank Group CEO Tim Sibala, who argued that xenophobic violence and restrictive migration policies are directly inflating the country's cost of capital.
The current dip in Durban's business outlook underscores the tangible economic impact of such civil unrest, as anti-migrant marches have forced shop closures and fractured local supply networks.