SOUTH AFRICA, Johannesburg, 11 March 2026: The National Automobile Dealers’ Association (NADA) notes the latest economic data released this week showing that South Africa’s economy grew by 1.1% in 2025, reflecting gradual progress despite a challenging operating environment.
While the growth rate remains modest, it signals continued resilience across several sectors of the economy and points to incremental recovery following years of disruption caused by energy constraints, infrastructure challenges and broader global economic pressures.
However, NADA notes that the outlook for 2026 will require careful navigation as businesses and consumers continue to manage rising input costs. The recent announcement by the National Energy Regulator of South Africa (Nersa) confirming electricity tariff increases of 8.76% for Eskom direct customers from 1 April 2026 and 9.01% for municipal customers from 1 July 2026 will form part of the cost environment facing businesses this year.
Electricity is a critical input cost across most sectors of the economy, including automotive retail, manufacturing, logistics and services. As such, tariff adjustments inevitably feed into the overall cost of doing business, influencing operational expenses throughout the value chain.
At the same time, rising fuel prices continue to impact transport and distribution costs across the economy. Together, these factors highlight the importance of maintaining an environment that supports business sustainability, consumer confidence and economic activity.
For the automotive retail sector, stable operating conditions remain essential. Dealerships operate as small and medium enterprises that support employment, investment and mobility across the country. Managing input costs while continuing to provide value and service to consumers remains a key priority for the sector.
Despite these pressures, NADA remains optimistic about the resilience of South Africa’s automotive retail sector and the broader economy.
“South African businesses and consumers have consistently demonstrated resilience in the face of challenging conditions,” says Brandon Cohen, Chairperson of NADA. “Continued focus on improving infrastructure, energy stability and policy certainty will play an important role in supporting stronger economic growth going forward.”
Cohen believes that predictability in energy supply and pricing, alongside ongoing economic reforms, will be key to unlocking stronger growth and supporting both businesses and consumers in the year ahead.
