Economists call for structural reforms to sustain rise seen in SA's economy

Some economists have called for continued structural reforms to help sustain the marginal improvement seen in the economy.

The latest calls come after business confidence rebounded in the fourth quarter, rising by five points.

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Rand Merchant Bank (RMB) and the Bureau for Economic Research (BER) released the latest survey results on Wednesday, putting confidence above its long-term average.

The most notable improvementcame from the manufacturing sector, where confidence rose by 16 points to 39.

Retail confidence also saw a big jump of 11 points to 43.

RMB economist Isaah Mhlanga said the increase in sentiment is a welcome signal after a choppy year, especially given the need to see higher confidence to reignite private sector fixed investment and job creation in the economy.

“Let's hold the champagne, let's put it in the fridge. You know, we still need to see a bit more done from a reform perspective, particularly on the logistic sector, the water sector, the municipalities, as far as they deal with infrastructure, because that is ultimately where businesses reside.”

Looking ahead, Mhlanga said it will be important to see if manufacturing output catches up with sentiment, if retail spending maintains momentum in 2026, and building contractors bounce back from this quarter's dip.

“The Q4 RMB/BER BCI uptick is another green shoot. While promising, but still fragile, it will need steady policy progress and consistent demand to take root and grow.”