Cape Town - Rating the key issues affecting business in the first 100 days of the Zuma administration, the South African
Chamber of Commerce and Industry (Sacci) reckons that crime and security have regressed and so have labour relations.
"The recent spate of heists in shopping malls is alarming and had a very negative impact on the policy radar," the Sacci report, issued on Friday said. "The level of criminal activity currently experienced is usually associated with the festive season, but seems to have been drawn forward possibly as a consequence of economic hardship."
The chamber wants government to develop an urgent response to this emerging trend over the next weeks. "The appointment of the new police commissioner and the potential appointment of an operations officer in the police service coupled with new ministerial leadership would be expected to yield new, creative approaches to the crime challenge," it said.
The business lobby added that fraudulent activities like the recently exposed Ponzi scheme also call for strong action to bring confidence to investment portfolios. "Other areas that must be addressed include improving the judicial system to enable it to perform its constitutional mandate effectively, strengthening correctional services, transforming the police
services and a no-tolerance policy against corruption," Sacci's report said.
On labour matters, the chamber said that the annual "strike season" of labour unions reached record highs this year and has come at a significant cost the economy if one considers the labour days lost nationally. "The labour environment appears increasingly belligerent," the report said.
"Especially from the perspective of foreign stakeholders who may not always distinguish between labour strikes and service delivery protests."
"The national skills shortage continues to be a challenge," the report said. "Combined with the efforts of the newly established Ministry of Higher Education and the transfer of the mandate for oversight for the Setas from the Department of Labour to the Department of Higher Education, new energy should be directed at the skills challenge."
The report also notes that attention is finally being turned to
resolving concerns surrounding labour broking practices. Parliament will open public debate on the matter late in August.
Other matters on business's radar screens include infrastructure
spending, to which the chamber gives only a tentative rating.
"Business awaits the direct benefits of the infrastructure improvement programmes," the report said. Projects include the roads upgrade, bus rapid transport system, construction of houses, schools, and water and sanitation infrastructure.
"Many of these development projects do cause hardship to both business and consumers until their completion," the report points out.
The report also complains that cost pressures in the business
environment have been created by the recent adjustments in certain administered prices although these could also be viewed as contributing to the maintenance of infrastructure that services the business environment.
"Government's infrastructure programmes and expenditure are crucial in leading the economy through the economic crisis," the authors said.
"Government's ongoing commitment to these programmes is welcomed."
Commenting on the ease of doing business in South Africa, the report said that the rating improved marginally on the policy radar as business anxiously waits for implementation plans in support of government's commitment to reducing red tape, especially in the SME environment.
On the downside, the authors say: "While there have been improvements in respect of the commitment of development finance institutions (DFIs) to supporting businesses through the crisis, the challenge of accessibility of the DFIs as well as accessing financial support through private sector financial institutions remains."
The report also comments on the ICT environment, which, it notes, is looking up, thanks to the activation of the Seacom undersea fibre optic cable as well as the undertaking by the Minister of Communications to reduce communication-related costs through the implementation of action programmes to improve affordability, quality, availability and usage of ICT.
- I-Net Bridge