Confusion over policy hampering growth

Uncertainty over economic policies such as nationalisation was hampering efforts to raise SA’s growth rate, business said yesterday, while acknowledging confidence improved slightly last month.

The South African Chamber of Commerce and Industry (Sacci) business confidence index showed only a slight increase last month, according to data released yesterday , suggesting business was still pessimistic about SA’s future.

The index rose 0,6 points to 87,6 last month from 87 in November.

"It will be challenging to muster the momentum towards growth while investment and household spending are driven by credit, and while employment and fixed investment remain subdued," Sacci said.

Calls for big policy shifts damaging confidence

Business confidence is under pressure from “ill-conceived” demands for debate about drastic shifts in economic policy, the South African Chamber of Commerce and Industry (SACCI) has warned.

The warning comes amid a standoff in the ruling alliance over calls for a radical rethink of policy on nationalising the mines, scrapping the inflation target framework and introducing taxes on capital inflows to curb unwelcome gains in the rand.