Businesses pessimistic about 12-month economic outlook

© alexmillos – 123RF.com

Of the 100 SA companies surveyed, the majority said that rising energy costs, a volatile rand exchange rate, policy uncertainty, poor government service delivery, and lack of skilled workers were among major concerns.

Grant Thornton CEO Andrew Hannington says the survey results suggest that it is getting more expensive to do business in SA.

Surveyed companies have had to spend more on upgrading security due to crime, as well as invest in expensive alternative sources of energy due to frequent power cuts.

"The cost of the security (and) of energy - these are additional costs which our respondents are saying (are making it) more expensive to do business in SA," Mr Hannington said.

Surveyed businesses said they were reluctant to invest further in SA or were thinking of investing outside SA mainly due to policy uncertainty, particularly several bills that are before Parliament.

Identified bills included the Expropriation Bill, the Promotion and Protection of Investment Bill, and the Private Security Bill, among others.

The survey for SA was part of a global one run by Grant Thornton to compile the first-quarter 2015 International Business Report.

The report seeks to establish business growth prospects and growth constraints.

The report found that globally, there was still optimism about the economy over the next 12 months.

Source: BDpro