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Johannesburg - South Africans business is caught between two stools as a result of the uncertainty created by sweeping statements on future policy.
Sanlam [JSE:SLM] chief executive Johan van Zyl said that in these circumstances it was very difficult for businesses to grow and create the necessary job opportunities.
This also meant that South Africa would be overlooked as an investment destination.
Within the regulatory framework it was difficult for enterprises to grow and therefore opportunities passed South Africa by, Van Zyl said in an interview with Sake24.
Businesses wanted certainty, even if based on bad decisions.
Van Zyl said calls for the nationalisation of mines could lead to calls to nationalise other industries – such as financial services.
After mining, the financial services sector was the most important in South Africa. It was the second industry for which calls for nationalisation could be expected.
In this regard he referred to the noises that had already been made about the creation of a state bank.
Last year, in a document on a growth path for job creation, Cosatu called for the creation of a state-controlled bank. According to the trade union, a state-controlled bank would stimulate growth and help regulate the economy.
Such remarks scare investors off and create uncertainty, said Van Zyl. In turn they lead to companies not making the necessary investments to create jobs.
He went on to say that the rand was too strong. He expected that in time the rand would weaken dramatically as a result of unproductive expenditure by the state.
No infrastructure was being created, he pointed out, and the country would consequently in time experience higher interest rates and higher inflation.
- Sake24.com
For business news in Afrikaans, go to www.sake24.com.
Sanlam [JSE:SLM] chief executive Johan van Zyl said that in these circumstances it was very difficult for businesses to grow and create the necessary job opportunities.
This also meant that South Africa would be overlooked as an investment destination.
Within the regulatory framework it was difficult for enterprises to grow and therefore opportunities passed South Africa by, Van Zyl said in an interview with Sake24.
Businesses wanted certainty, even if based on bad decisions.
Van Zyl said calls for the nationalisation of mines could lead to calls to nationalise other industries – such as financial services.
After mining, the financial services sector was the most important in South Africa. It was the second industry for which calls for nationalisation could be expected.
In this regard he referred to the noises that had already been made about the creation of a state bank.
Last year, in a document on a growth path for job creation, Cosatu called for the creation of a state-controlled bank. According to the trade union, a state-controlled bank would stimulate growth and help regulate the economy.
Such remarks scare investors off and create uncertainty, said Van Zyl. In turn they lead to companies not making the necessary investments to create jobs.
He went on to say that the rand was too strong. He expected that in time the rand would weaken dramatically as a result of unproductive expenditure by the state.
No infrastructure was being created, he pointed out, and the country would consequently in time experience higher interest rates and higher inflation.
- Sake24.com
For business news in Afrikaans, go to www.sake24.com.
