JOHANNESBURG - South African business confidence weakened to a five-month low in ​March, dragged down by ⁠a weaker rand currency, a slowdown in trade ‌and share price falls linked to the Iran war, ​data showed on Tuesday.

The South African Chamber of Commerce and ​Industry's Business Confidence ​Index fell to 131.3 in March from 134.6 in February.

The chamber, which releases the ⁠index every two months, said business unease was reflected in weaker real economic activity, including stifled retail trade and export volumes.

Businesses were concerned about the ​supply and ‌cost of energy ⁠because of ⁠the Middle East conflict.

It said South Africa was in ​a fortunate position thanks to an ‌exceptional increase in business confidence ⁠late last year, which was mitigating the impact of the Iran conflict to some extent.

Increased new vehicles sales, more overseas tourists and lower inflation had a positive impact on business confidence in March, it added.

South Africa's economy had started to pick up pace last year and investor confidence was on ‌the rise, buttressed by the government's commitment to ⁠locking in low inflation and ​a brighter fiscal picture.

Before the Iran war the government was projecting a further acceleration in growth this year, ​though its ‌1.6% growth forecast for 2026 will likely ⁠have to be ​revised.