Johannesburg - SA's economic "bleeding" has slowed down as negative trends started to subside, the SA Chamber of Commerce and Industry (Sacci) said on Thursday.
Releasing its third quarter 2009 review, it added that the Sacci Policy Radar - that includes sectors such as Crime and Security, Environment, Labour, Infrastructure, Ease of Doing Business and ICT - had moved from strength to strength showing strong recovery in all focus areas.
"Attention to the ease-of-doing business, investment attractiveness and speedier implementation of supportive policies and strategies to assist ailing enterprises will further drive improvements in the radar in its next assessment," Sacci said.
It added that the way had been paved for a recovery in economic trends and financial indicators.
"But before rejoicing, we must continue to bear in mind the burden that taxpayers, both locally and internationally, will carry as we emerge from the crisis," it said.
"It is hoped that the positive sentiments that continue to drive the policy radar outward will be sustained into 2010," Sacci added.
The policy radar assessment for the third quarter clearly identified the ease of doing business as a focus area in need of urgent attention.
"The global Doing Business Report bears testimony to African neighbours like Mauritius and Rwanda rapidly gaining on South Africa in this regard," Sacci noted.
"There will no doubt be a dramatic improvement in this focus area once government turns stronger attention to the current plight of SMEs [small to medium enterprises] and, in particular, aggressively moves towards easing the regulatory and bureaucratic burdens that saddle emerging enterprises," it said.
Although signs of a meaningful recovery eluded the South African economy, the possibility of stability, albeit at a low level, was realisable in the near term.
"Economic activity may improve in the fourth quarter 2009, albeit at a sluggish pace," Sacci said.
To maintain or raise the tempo of fixed investment and to provoke a stronger path to economic recovery, it was imperative that business and investor confidence were prioritised in new policy proposals and policy implementation, it added.
- Sapa