The Durban Business Confidence Index (BCI) computed by the University of KwaZulu-Natal’s (UKZN) Macroeconomics Research (MRU) has received presidential recognition, according to the Chief Financial Officer (CFO) of the Durban Chamber of Commerce and Industry, Mr Mike Raftery.
Raftery was speaking at a business breakfast hosted by the University of KwaZulu-Natal’s Macroeconomics Research Unit (MRU), in partnership with the Durban Chamber of Commerce and Industry NPC (DCCI) and eThekwini Municipality, to launch the 2025 third-quarter Durban Business Confidence Index (BCI) findings at a business breakfast.
“The Presidential eThekwini Working Group (PeWG) uses the Durban BCI as a key metric to monitor and evaluate the effectiveness of its interventions in Durban.
“The index is an important indicator that the Working Group tracks to gauge the success of its efforts to improve service delivery, address infrastructure challenges, and reposition eThekwini as an investment and tourism destination,” said Raftery.
The business breakfast brought together influential leaders, innovators, business captains, the media and other stakeholders who continue to drive growth and resilience in the city’s economy.
Delivering the opening remarks, UKZN’s Deputy Vice-Chancellor and Head of the College of Law and Management Studies, Professor Ernest Khalema, emphasised the need for continued research on the BCI and its implications for Durban’s economic trajectory.
“Going forward, it would be much appreciated to have the business community assist with funding students’ postdoctoral research fellows mentored by professors in the BCI technical team. This support will help position Durban at greater heights, as it remains the first metro in the country with its own Business Confidence Index,” he said.
Presenting the findings, MRU founder and economics expert Professor Harold Ngalawa, reported that the Durban BCI declined by 0.53% in the third quarter of 2025, falling from 52.40 index points in the second quarter to 52.12 index points in the third quarter. He noted that this dip reflects a steady deterioration in economic conditions, although the index remains above the neutral zone – indicating continued investor confidence in Durban’s economy.
“The city’s confidence is driven by national economic trends more than local factors,” said Ngalawa, adding that South Africa’s current state of affairs and ongoing geopolitical and trade uncertainties continue to undermine investment attraction in the country.
Guest speaker, Dr Sthembiso Mthimkhulu, Senior Manager for Information and Research at eThekwini Municipality, shared insights on the local and global economic outlook. He noted that the decline in business confidence reflects concerns about service delivery, policy uncertainty, and global trade challenges.
“Changing market demands and labour pressures have left unemployment at persistently high levels, with limited absorption of new entrants into the labour market,” he remarked.
Representing the DCCI, Raftery said business investment remains a key avenue for addressing unemployment. “By identifying high-performing sectors and addressing structural challenges at their root, we can unlock new opportunities for entrepreneurship and growth.
“Collaboration between the public and private sectors is vital to driving robust and sustainable change in Durban,” he said.
Adding to this, Mr Shunnon Tulsiram from eThekwini Municipality underscored the importance of continued stakeholder collaboration to strengthen the city’s economic and social fabric. “We must not see this picture in isolation,” he said, “there is need for integration between academia, the business community, and all spheres of government to shape the city’s future.”
Facilitating the proceedings, College of Law and Management Studies Public Relations Manager Ms Hazel Langa closed the breakfast by emphasising the value of collaboration across different departments and relevant stakeholders, noting that such partnerships enhance the University’s contribution to knowledge generation and community impact.
Words: Andiswa Dladla
Photograph: Sethu Dlamini