As the Durban Chamber of Commerce and Industry prepares to mark its 170th anniversary, its chief executive says investment in the city continues despite declining confidence, but warns that ageing infrastructure and unreliable municipal services threaten future growth.

The Chamber held its annual gala dinner at the playTSOGO Globe, Suncoast, on October 28 under the theme “Building Confidence Together”.

Chief executive Palesa Phili said manufacturing investment, port developments and projects supported through the Presidential eThekwini Working Group revealed that business had not lost faith in the city.

“We continue to witness businesses that remain steadfast in their belief that Durban holds immense potential and will recover,” she said.

The Durban Business Confidence Index fell from a record 63.38 points in the fourth quarter of 2025 to 50.63 in the first quarter of 2026 and 48.82 in the second quarter. It was the first reading below the neutral 50-point mark since the second quarter of 2024.

Phili attributed the decline largely to national and international pressures, including changing inflation and interest rate expectations, geopolitical tensions, migration-linked protests and higher fuel costs. Durban nevertheless remained above the national business confidence index of 39 points for the same quarter.

The index measures business sentiment rather than actual investment spending. Although the Chamber highlighted developments in several sectors, it did not provide an overall value for recent investments or identify projects delayed because of weaker confidence.

Phili pointed to an R11 billion investment commitment associated with the 25-year concession for the Durban Container Terminal Pier 2, rather than money already spent on the project.

Durban recorded the biggest year-on-year improvement in the World Bank’s 2025 Container Port Performance Index, though it remained near the bottom globally.