South Africa's private sector experienced marginal growth in June, despite a significant decline in business optimism, which has reached its lowest point in five years. This indicates a contrasting trend between economic activity and the sentiment of business leaders in the country.

South Africa has improved its position by 10 places in the World Competitiveness Ranking, with the highest score being for prices, ranked seventh. This improvement reflects the South African Reserve Bank's efforts to achieve a 3% inflation target, according to The South African Biz.

According to The South African Biz, the South African Purchasing Managers' Index (PMI) decreased in June, with a second quarter average of 50.2, which is an improvement over the first quarter average of 48.3.

A survey indicates that nearly half of South Africans are concerned about their ability to cope with another interest rate hike, with the next announcement scheduled for 23 July, according to The Citizen Business.

According to The South African Biz, the Consumer Confidence Index (CCI) in South Africa decreased to -19 in the second quarter of 2026, down from -7 in the first quarter, indicating a negative sentiment among wealthy South Africans.

In early May 2026, anti-immigrant protests occurred in major South African cities, raising concerns about rising xenophobia in post-apartheid South Africa. President Cyril Ramaphosa urged citizens to show solidarity with their African neighbors, while foreign governments expressed their discontent. Police were deployed to manage the situation and prevent violence during the demonstrations, which featured participants in traditional Zulu attire, as seen in Johannesburg on April 29, 2026.