Johannesburg - South Africa's Bureau for Economic Research (BER) has identified regulatory constraints, state leadership and capacity, infrastructure deficiencies and costs, and labour skills as key issues hampering business activity, and by extension, economic growth in South Africa.
A total of 4 238 business executives received questionnaires in the survey and the aggregate response rate for the special question was 16.1% - 682 responses were compiled.
A list of 18 business constraints was included in the survey questionnaire, grouped into six different categories.
"It can only be concluded that the government is on the right track by addressing these constraint areas in terms of its Asgisa (Accelerated and Shared Growth Initiative of SA) strategy.
"However, what the overall survey results suggest, is that great urgency is required, particularly regarding the 'government's interface with business' - labour regulations,
official red tape, tax administration, government policy support, municipal services, competition policy and infrastructure and logistics deficiencies are all factors holding back SA's economic growth and employment creation
potential," the BER said.
The researchers concluded that a more competitive currency and skills training could also go a long way in improving the economy's growth rate.
They said that rapid growth of the South African economy over recent years was increasingly exposing key constraints in the economy, which could deter South Africa from attaining even higher economic growth rates over the medium to longer term.
"It emerges that - in order of importance - regulatory constraints (labour regulations and official red tape), state leadership and capacity (policy support and municipal services), infrastructure deficiencies and costs (electricity supply problems and communications costs) and labour
skills are key issues hampering business activity - and by extension - economic growth in South Africa," the BER said.
The researchers said that between 30% and 45% of all the respondents rated these factors to be serious to debilitating issues in terms of the operation of their business.
A "second tier" of constraints could also be identified, namely, the volatility and (strong) level of the exchange rate, lack of competition (e.g. monopoly pricing), tax administration and road travel deficiencies.
Between 17% and 22% of all the respondents regarded these factors to be of a serious constraining impact.