South Africa’s Consumer Confidence Improves Amid Rate Cuts, Stronger Rand

Consumer confidence in South Africa is beginning to recover, supported by lower interest rates, rising stock market performance, and a stronger rand.

According to the latest FNB/BER Consumer Confidence Index (CCI), sentiment improved to -7 in the first quarter of 2026, up from -9 in the previous quarter. This represents the highest level recorded since the final quarter of 2024, when the rollout of the two-pot retirement system temporarily boosted household finances.

FNB Chief Economist, Mamello Matikinca-Ngwenya, attributed the overall improvement largely to increased optimism among high-income earners.

However, she cautioned that the survey was conducted before the United States launched its military operation against Iran on February 28. She warned that the potential economic fallout from that development could dampen consumer sentiment in the months ahead.

Matikinca-Ngwenya noted that while confidence has been on a gradual upward trend, external geopolitical tensions now pose a significant downside risk to this recovery.