SA business concerned over unstable investor confidence
Sacci's chairperson has warned the impact of new regulatory proposals on potential investors.
JOHANNESBURG - A collective of South African businesses has raised what they say is a serious concern about the business confidence in the country.
They say there is a need for the implementation of regulatory impact assessments.
The South African Chamber of Commerce and Industry(Sacci), Tourism and Black Business Council and the Small Business Project have called for better consultation before draft Bills are published for comment.
Sacci says uncertainty and unpredictability are the biggest threats to business confidence, which is currently not conducive for investment.
The council's chairperson, Vusi Khumalo, says business confidence in South Africa remains lower than levels last experienced in 2010.
"This is a clear indication that the business environment is not conducive to economic growth."
#SAbusiness Khumalo: Business concerned about unintended consequences and impact on business this legislation will have.— EWN Reporter (@ewnreporter) February 2, 2016
Khumalo has also warned uncertainty about the private security, mineral resources and expropriation Bills has a negative effect on potential investors.
#SAbusiness Khumalo: Private security amendment bill - requirement for 51% ownership local. GW— EWN Reporter (@ewnreporter) February 2, 2016
#SAbusiness Khumalo: Expropriation Bill - concerns regarding what would be classified public interest and just and equitable compensation.— EWN Reporter (@ewnreporter) February 2, 2016
"The perceptions of both foreign and local stakeholders can be significant deterrent. Sacci has called for the regulatory impact assessments before regulatory proposals are published for comment."
The business representatives say these impact assessments must be based on internationally accepted evidence and should be transparent.