Energy sector organisation the Energy Council of South Africa welcomes the rise in business confidence to 121.1 in September, as reported by the South African Chamber of Commerce and Industry.

Business confidence is at its highest level this year and up from the 120 index points recorded in August.

This upward trend reflects growing optimism in the country’s energy sector, where tangible progress is being made toward market reform, investment and infrastructure delivery, the Energy Council says.

“The steady recovery in business confidence signals that reforms are taking root. Energy has become a central driver of this growing sentiment, since the eradication of structural loadshedding which now feels like a distant nightmare. We are starting to see the alignment between policy certainty, investment appetite and delivery on the ground,” says Energy Council CEO James Mackay.

Further, recent milestones in South Africa’s market reform journey, including the promulgation of the Electricity Regulation Amendment Act and ongoing work to strengthen the national grid solving for new connection capacity, are reshaping investor perceptions of the sector.

These developments are opening new capital flows and building confidence in the country’s ability to deliver a modern, competitive and secure electricity market, he adds.

The Energy Council continues to work closely with business and government to prioritise delivery support for the South African Wholesale Electricity Market in April 2026, as well as the timely expansion of transmission infrastructure over the critical period to 2030, to ensure the continued investment momentum in renewable energy project development.

Through collaborative initiatives such as the Energy Data and Modelling South Africa project and the communications campaign Energise Mzansi, the Energy Council is supporting data transparency to improve business confidence to unlock a capital investment portfolio of R2-trillion over the next decade, Mackay says.

“We have an opportunity to convert optimism into momentum. Energy remains the backbone of economic growth and the vehicle through which our economy can achieve its 3.5% growth ambition.

“With continued reform, investment and collaboration, South Africa can achieve energy security and economic renewal,” he says.

Meanwhile, the South African Reserve Bank September Quarterly bulletin highlighted that the cash reserves of business stood at a record level of R1.8-trillion.

The Energy Council believes the growing confidence and stability in public debt and budget surplus as recently reported by the National Treasury will stimulate the release of these reserves and accelerating economic growth, Mackay says.

To maintain energy sector investment and reform momentum, increased productive electricity demand is also a key driver.

Recent focused statements by the Department of Electricity and Energy on Pricing Policy and stimulating demand through industrial growth supports this positive outlook for the sector, he notes.