A Business Forum representing twenty bi-lateral Statement to the Media
October 22,2004
HIGHLIGHTS FROM THE BCCC INVESTOR : Response from the seven participating foreign Scandinavian chambers
78% found the economy satisfactory to excellent, as compared with 31% who found it good to excellent in 2002
95% saw it getting better and had "confidence" in the economy
53% had increased confidence in the SA government, whereas in 2002, 32% expressed such increased confidence
60% said their investment in SA would be increased, whilst 72% said the same in 2002 when the global economic climate was better
14% will disinvest from SA, whereas 3°& said the same in 2002. However, 7% want to go elsewhere in Southern Africa, whereas none wanted to before. 10% wanted to re-locate elsewhere in SA.
70% viewed corruption as the most significant future concern in SA, followed in descending order by a concern on the competency of the public service, flexible, labour relations and crime and violence (60%).
There was significant confidence (70%) that South Africa would remain a market driven economy and 53% felt that balanced taxation would be retained. 46% felt that democracy as experienced at the present would be retained, 34°-s were confident in the political leadership of South Africa and 32% expressed confidence that foreign companies would be treated equally in the future.
Whilst most respondents were relatively happy about future returns on investment, cheap electricity and the fact that South Africa would remain as a free-market environment most were ambivalent or despondent about any improvement in the area of incentives, accountability of unions, ability to transfer more funds out of SA and equal opportunities for foreign business.
Factors seen as essential if SA were to compete better for further FDI were low levels of crime, absence of political and relatively "pessimistic" about incentives and accountability of trade unions.
On international events impacting on South Africa, 73% had experienced problems as a result of volatility of the rand and 59% had been negatively affected in one way or another by events in Zimbabwe. 48% were similarly affected by events in Zimbabwe in 2002.
On Black Economic Empowerment respondents were asked for additional comment as well as rating their views and actions. 90% were able to respond that they had embraced BEE in one way or another as far as employment issues were concerned, 80% reported that they were considering, implementing or had implemented some sort of empowerment plan.
55% found ownership equity aspects of BEE the most difficult to implement for a number of reasons and 32°i found the human resources aspects, such as workforce composition, employee
representation and the development of skills, the most difficult to implement. 13% said that they found indirect empowerment factors such as affirmative procurement, enterprise development, social development and specific industry measures difficult to apply.
51% reported that BEE had no effect on their business. 37% said that it had a negative effect on their businesses.
From the comments, most respondents had clearly adopted all aspects of BEE but were unsure that government will achieve the broad based empowerment hoped for in the preambles of government legislation or in terms of their strategic plans.
A 79% " bad to very bad" return was made on government's policy towards the HIV/Aids issue, respondents stating that in general government is not hearing business with regard to the HIV/Aids pandemic and that government should move urgently to counter the perception that it was doing very little to deal with its effects.
Nearly of companies reporting said that HIV/Aids had affected their businesses in some way or another. 67% categorised these "effects" as moderate to very little, at this stage.