Cyril Xaba hails business confidence boost following State of the Nation address
eThekwini Mayor Cyril Xaba celebrates a significant boost in business confidence following President Cyril Ramaphosa's State of the Nation Address, highlighting the municipality's renewed optimism for economic recovery
Image: NTOMBIZODWA DLAMINI Sunday Tribune
eThekwini Mayor Cyril Xaba expressed that the mention of the municipality in the State of the Nation Address (SONA) on Thursday, particularly regarding business confidence, was a significant morale booster.
During his address, President Cyril Ramaphosa highlighted that South Africa’s economy is experiencing growth, with this momentum gathering pace.
He noted that the country has recorded four consecutive quarters of gross domestic product growth; however, he emphasised the need for this growth to accelerate significantly to address the pressing social and economic challenges.
“We will continue to implement targeted support to improve the delivery of basic services through the Presidential Working Groups on eThekwini and Johannesburg. We have made progress in stabilising eThekwini, which has led to investor confidence returning,” Ramaphosa stated.
The President also mentioned that South Africa has achieved two consecutive primary budget surpluses. Furthermore, he pointed out improvements in the credit rating, declining interest rates, and inflation levels that are at their lowest in two decades.
Xaba remarked that enhanced service delivery has raised business confidence to over 63.38 points.
“The president’s commendation inspires the municipality to work even harder to ensure that eThekwini remains a premier destination for investment and tourism. I applaud the city’s political and administrative leadership and its social partners for their hard work and strong collaboration in driving positive change,” he noted.
According to Ramaphosa, the nation has made significant strides in improving the efficiency of its ports and freight rail networks, resulting in a steady increase in the volume of goods transported into and out of the country. He also highlighted that South Africa has successfully been removed from the Financial Action Task Force's grey list concerning money laundering and terrorism financing.
“Although we are moving forward, we must not claim any easy victories. We are still far from where we need to be. South Africans are concerned at the state of local government and its inability to deliver basic services in many parts of the country,” Ramaphosa cautioned.
The fourth quarter 2025 Durban Business Confidence Index report, presented in January 2026, revealed an upward trajectory in business confidence, alongside a stabilisation in trust regarding the municipality's service delivery. More business leaders are now confident that their complaints about service delivery will be addressed.
Compiled by the University of KwaZulu-Natal (UKZN) Macro-economics Research Unit, the quarterly report assesses various economic sectors in Durban, finding that nearly all are exhibiting increased confidence. The index ranges from 0 to 100, with a score below 50 indicating low confidence, a score of 50 reflecting a neutral economic outlook, and a score above 50 signalling positive confidence in the economy.
Dr Ntokozo Nzimande from the UKZN Macro-economics Research Unit noted that there is a near consensus among academics and business professionals that the Business Confidence Index (BCI) provides valuable insights into future investment growth due to its predictive capabilities. “After deteriorating for four consecutive quarters, the Durban Business Confidence Index (DBCI) significantly improved in Q4 2025,” he stated.
The index rose from 52.12 points in Q3 2025 to 63.38 points in Q4 2025, indicating that six out of ten surveyed business executives are satisfied with current conditions. In summary, the DBCI improved by 21.60 points in Q4 2025, climbing from 52.12 in Q3 2025 to 63.38 index points in Q4 2025. Compared to the same quarter in 2024, the index surged by 4.35%, suggesting that overall economic conditions are significantly better than they were a year ago.
The report also highlights a marked improvement in businesspersons' perceptions of service delivery in Q4 2025. The proportion of respondents who believed that complaints about poor service delivery were unlikely to be addressed within a reasonable timeframe dropped from 80% in the previous quarter to 66.67% in Q4 2025.