South African small and medium enterprises (SMEs) are cautiously optimistic that the newly established Madlanga Commission will mark a turning point in the fight against corruption and crime – long seen as one of the greatest barriers to doing business in the country.
This is according to Quarter 2 2025 SME Confidence Index by Business Partners Limited, which shows a slight improvement in overall confidence across most indicators compared to the previous quarter.
When asked specifically about the Madlanga Commission, 56,82% of SMEs said they believe it will help dismantle entrenched crime syndicates and lead to a meaningful reduction in crime across the country.
“Crime continues to drain resources, disrupt operations, and raise the cost of doing business for small businesses,” says Jeremy Lang, MD at Business Partners Limited. “SMEs lose out on procurement opportunities because they may not have the ‘right connections, which directly impacts their profitability and sustainability. Similar to business owners, our hope is that this commission will expose the networks behind criminal activities and lead to stronger enforcement.”
President Cyril Ramaphosa’s decision to establish the commission in response to General Nhlanhla Mkhwanazi’s revelations has been interpreted by many SMEs as a renewed commitment to transparency and reform. Lang says this signal of political will is encouraging for business owners who have long called for more decisive action to improve law and order.
Hopeful confidence amid GNU uncertainty
While disagreements within the Government of National Unity (GNU) raised questions about its stability, most SMEs appear to have retained their positive outlook, with 66,74% of respondents saying they remain confident in achieving business growth this year.
SMEs remain divided on whether the GNU structure is delivering better support to SMEs than its predecessor government. According to recent findings, 34% of SMEs report indicating that they have more confidence in the GNU’s ability to support their growth while 36% believe there has been no noticeable change, indicating a need to accelerate support to SMEs.
According to the SME Confidence Index, business owners want funding, direct business flow from government and the implementation of existing policies for economic growth from government.
“SMEs rely on policy stability to plan effectively,” Lang explains. “It’s clear from these results that, despite local political tensions, entrepreneurs are choosing to focus on opportunity rather than uncertainty. However, they are also challenging the GNU to do more to support SME growth.”
Global pressures continue to test resilience
More than half of respondents (52,04%) said recent US tariff increases have indirectly affected their businesses, particularly those reliant on imports or export-linked supply chains. Global tensions and disruptions in oil supply chains are also taking a toll: 41,5% of SMEs said they were indirectly impacted, and 31,7% directly impacted, with rising costs and logistical delays putting additional pressure on operations.
“Even when South African SMEs are not directly part of global trade routes, they still feel the ripple effects through fuel prices, input costs and currency volatility,” says Lang. “The data again highlights just how interconnected our economy has become.”
Confidence improves quarter-on-quarter
Despite these persistent external pressures, SME sentiment strengthened compared to both the previous quarter and the same period last year. Confidence that businesses will grow in the next 12 months rose to 81% (up one percentage point quarter-on-quarter), while confidence in the broader economy being conducive to growth increased to 66%.
Confidence in accessing finance improved notably – up 5 percentage points from the previous quarter to 67%, and 5 percentage points higher year-on-year – while confidence in finding skilled and experienced staff edged up one percentage point to 71% quarter-on-quarter and down by the same percentage point year-on-year.
Support mechanisms remain vital
SMEs continue to place high importance on access to finance, mentorship, and SME-specific information. When asked about their biggest challenges for the next six months, cash flow remains the most pressing, followed by economic conditions and crime.
“While the challenges remain familiar, the slight improvement in confidence shows that SMEs are adapting and finding ways to navigate instability,” says Lang. “The optimism around the anticipated impact of the Madlanga Commission on crime reflects a deeper desire for accountability, fairness, and a more secure environment to do business. If these expectations are met, it could mark a meaningful shift in sentiment going forward,” he concludes.