Business confidence falls on strike threats

Johannesburg - South Africa's business confidence index fell to a three-month low of 89.1 in March from 92.8 in February, with the investment mood soured by the threat of labour stoppages and uncertainty over property right laws, a survey showed on Thursday.

"The continuous labour pressures for further strikes and work stoppages is causing uncertainty amongst business and withholding investment decisions," the South African Chamber of Commerce and Industry (Sacci) said referring to the survey.

"Loose ends must be tightened to nurture business confidence amongst local and foreign business before further momentum is lost," Sacci said, cautioning that weak global growth prospects would also continue to constrain confidence.

Workers at an Anglo American [JSE:AMS] coal mine downed tools on Tuesday, while public sector unions have threatened that its more than 1.2 million members may chose to go on strike after wage negotiations with government deadlocked.

READ: NUM members down tools at Anglo coal mine

Last Tuesday, Mining Minister Ngoako Ramatlhodi revealed that there was "no consensus" with industry over a mandated target of 26% black ownership by 2014, forcing the government to resort to the courts over the matter.

READ: Courts to decide on mines ownership compliance