“Plan approval is a nightmare.”

That was one of the frustrations voiced by iLembe business owners battling rising costs, red tape, infrastructure problems and municipal service delivery concerns.

The latest iLembe Business Confidence Index (iBCI) shows confidence slipping in four of six key sectors during the first half of the year, although businesses are more optimistic about the months ahead.

Compiled by the iLembe Chamber of Commerce in collaboration with Enterprise iLembe, the iBCI is a bi-annual snapshot of the regional commercial landscape, combining a survey of local business owners with a measure of business indicators.

The overall index score dropped as a result of declining sentiment, with businesses citing shared pressures including higher fuel costs linked to conflict in the Middle East, infrastructure problems and municipal service delivery.

Tourism, catering, accommodation and property management recorded the largest decline, falling 17.9 points to 40.9.

Businesses cited difficulties attracting and retaining quality staff, environmental pressures and uncertainty around new regulations.

“Legislation around guesthouses, bed and breakfasts etc needs clarity. All establishments want to comply, but need to fully understand what is needed and to be given time to achieve the required compliance levels,” said one respondent.

Construction, property development and property sales also came under pressure, with confidence falling 10.2 points to 46.

One respondent claimed building plan approvals were taking eight to 12 months and argued the process should take six weeks. Another said that since online submissions were introduced, their office had not had a plan approved in under five months. Land invasions, power and water interruptions and the rising cost of doing business were also among the concerns raised by the sector.

Agriculture confidence declined 7.1 points, with continuing uncertainty around Tongaat Hulett’s business rescue process among the factors weighing on the sector. Wholesale, retail and vehicle trade confidence also fell, dropping six points from the previous survey.

But it was not all negative.

Education, financial and business services – including IT, media, security and related businesses – improved, as did manufacturing and assembly.

Businesses were also more upbeat about the months ahead, with expectations for the second half of 2026 rising to 57.1. The index of actual economic activity remained firmly positive at 57.5 points, suggesting that despite declining confidence in several sectors, economic activity in the region remained resilient.

To read the full report, visit ilembechamber.co.za.