Political insecurity, nationwide strikes in the mining sector, regulatory concerns and public policy issues are major factors putting unnecessary pressure on the stability of South Africa's business environment, an international accounting firm revealed on Monday.

According to Grant Thornton's quarterly tracker data for the fourth quarter of 2012 released in Johannesburg, 48 percent of South African business leaders think uncertainty about the future political direction of the country is impacting on their future business decisions.

"Business owners have admitted they are delaying making important business judgements about the upcoming prospects for their organizations, with 26 percent seriously considering investing offshore in an alternative economy that's more stable," Grant Thornton South Africa national chairman Deepak Nagar said in the company's International Business Report (IBR).

The report said other core constraints noted which directly impact South Africa business expansion plans include socio- economic factors such as crime and corruption, the lack of available skills in the current workforce and poor government service delivery.

"Next year – 2014 – is a national election year for South Africa. Those who successfully formulate feasible solutions to these concerns would certainly take the lead on next year's electoral battle ground," he said.

IBR provides quarterly tracker insights into the views and expectations of over 12,000 businesses surveyed in total per year across 44 economies. The data highlights regional and national business owner's perceptions regarding crime, service delivery and political climate for South Africa business owners.

Nagar noted the constraints highlighted by South African business executives each quarter are consistently the same. "The fact that these results indicate such similar business concerns each and every quarter emphasizes just how critical these issues are for South African business owners," he said.

"In line with BRIC business leaders, 42 percent of executives in South Africa agree that overregulation and complex red tape also constrict business growth and this highlights how stifling regulatory systems and processes affect the day-to-day functions within a company," Nagar said. Endi

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