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Pretoria - Agri SA president Johannes Möller says it is important to guard against South Africa being seen as a risky, unstable and uncompetitive economy by investors.
"A visible lack of consensus on economic and social policy is undermining the feasibility of the National Development Plan and confidence in the country as an investment destination.
"In light of the sharp depreciation of the rand, the South African economy this past week paid a high price for general uncertainty and the handling of problems in the labour market.
"The negative sentiment extends further than mere concern about wage demands and violent unrest.
"It's exacerbated by sharp increases in administered prices such as those of electricity and fuel, unhappiness with and mass action due to poor service delivery and alarming statements regarding property-related issues,” said Möller.
President Jacob Zuma on Thursday said at a news conference that South Africa needed a stable mining industry to increase its economic growth and the rand fell to around R10/$ a few hours later - the lowest level in four years.
He called for dialogue in South Africa's troubled mining sector the day after a union leader was shot dead following a series of strikes.
The industry, which brings in around 60% of export earnings and accounts for a fifth of Africa's largest economy, has seen a rash of wildcat strikes sparked by wage demands and union rivalries.
Production
Referring to debates in parliamentary budget votes, Möller said they served as guidelines to which local as well as foreign investors responded.
He regarded Minister of Agriculture Tina Joemat-Pettersson's budget speech as moderate but was nevertheless concerned that her continued support for farm worker organisations could contribute to further unrest in the industry.
Möller however welcomed her initiatives to strengthen the production side of the industry with a view to food security and trade expansion.
Farming towns across the Western Cape came to a standstill between November and February this year during a protest by workers against poor wages and harsh living conditions.
Möller was of the opinion that the budget speech on rural development and land reform on Thursday last week had ended on a low note.
He referred to Land Reform Minister Gugile Nkwinti 's response to an opposition member’s warning that the reopening of land claims would create too much uncertainty, which could ultimately lead to food insecurity and may place South Africa on the Zimbabwean route.
“Hopefully Minister Nkwinti’s comment in this regard, namely that the Zimbabwean land reform model was worthy of emulation (not a direct quote), had been made in the heat of the debate. However, the potential damage that remarks of this nature can cause should not be underestimated,” said Möller.
Over the past few years government, in consultation with the community, had developed good policy documents which, if implemented effectively, could result in a better and more prosperous society.
Möller said the National Development Plan was a good example of this, which should be used more consistently by all role players.
"A visible lack of consensus on economic and social policy is undermining the feasibility of the National Development Plan and confidence in the country as an investment destination.
"In light of the sharp depreciation of the rand, the South African economy this past week paid a high price for general uncertainty and the handling of problems in the labour market.
"The negative sentiment extends further than mere concern about wage demands and violent unrest.
"It's exacerbated by sharp increases in administered prices such as those of electricity and fuel, unhappiness with and mass action due to poor service delivery and alarming statements regarding property-related issues,” said Möller.
President Jacob Zuma on Thursday said at a news conference that South Africa needed a stable mining industry to increase its economic growth and the rand fell to around R10/$ a few hours later - the lowest level in four years.
He called for dialogue in South Africa's troubled mining sector the day after a union leader was shot dead following a series of strikes.
The industry, which brings in around 60% of export earnings and accounts for a fifth of Africa's largest economy, has seen a rash of wildcat strikes sparked by wage demands and union rivalries.
Production
Referring to debates in parliamentary budget votes, Möller said they served as guidelines to which local as well as foreign investors responded.
He regarded Minister of Agriculture Tina Joemat-Pettersson's budget speech as moderate but was nevertheless concerned that her continued support for farm worker organisations could contribute to further unrest in the industry.
Möller however welcomed her initiatives to strengthen the production side of the industry with a view to food security and trade expansion.
Farming towns across the Western Cape came to a standstill between November and February this year during a protest by workers against poor wages and harsh living conditions.
Möller was of the opinion that the budget speech on rural development and land reform on Thursday last week had ended on a low note.
He referred to Land Reform Minister Gugile Nkwinti 's response to an opposition member’s warning that the reopening of land claims would create too much uncertainty, which could ultimately lead to food insecurity and may place South Africa on the Zimbabwean route.
“Hopefully Minister Nkwinti’s comment in this regard, namely that the Zimbabwean land reform model was worthy of emulation (not a direct quote), had been made in the heat of the debate. However, the potential damage that remarks of this nature can cause should not be underestimated,” said Möller.
Over the past few years government, in consultation with the community, had developed good policy documents which, if implemented effectively, could result in a better and more prosperous society.
Möller said the National Development Plan was a good example of this, which should be used more consistently by all role players.
