Following a meeting of its regional heads, the African Christian Democratic Party (ACDP) said the two issues were scaring away investors who might be interested in the country.

"While it is government's stated intention to enhance growth, employment and equity, it is the ANC government itself that is hindering its own economic policy," said ACDP president Kenneth Meshoe.

He said economic growth was further constrained by the poor quality of education, the lack of skills development, fraud and corruption.

Moshoe also placed the blame on Black Economic Empowerment (BEE).

"BEE, from the ACDP's perspective, facilitates self-enrichment of the politically connected, especially as the ANC is both referee and player," Meshoe said.

South Africa also needed to follow the International Labour Organisation (ILO) guidelines on labour broking.

"This allows the industry to exist, develop and grow while effectively banning exploitation and abuse," he said.

Moshoe said there needed to be urgent action on youth unemployment.

"The ACDP supports the youth wage subsidy, however it will need responsible and coherent implementation...it should be linked to training and certification."

He said the ACDP was also appalled at the poor performance of the country's schools.

The non-delivery and destruction of textbooks in Limpopo and the Eastern Cape, and the 90% failure rate in Further Education and Training (FET) colleges in KwaZulu-Natal were appalling.

Moshoe proposed that teaching be made an essential service and remuneration of teachers be benchmarked on international norms and standards.

"Teachers must be given the facilities and tools they need to teach effectively. Those responsible for negligence or sabotage must be held accountable and prosecuted."