Business has good reason for caution: Ruling party policy

President Jacob Zuma told the nation on Tuesday night that it was his fervent wish that the private sector shows ''as much confidence in the economy as the public sector''.

The statement must have had business leaders scratching their heads.

It is true that, collectively, business is sitting on a sizeable cash pile that could be productively invested in the economy but which is, instead, being saved for a rainy day or to be passed on to shareholders.

But to suggest that this cautious approach is proof that private businesses are being less patriotic than their counterparts in the public sector is as misguided as it is dishonest.

The vast public service and the parastatals - many of them failing - would not be able to function at all were it not for the taxes levied on private companies and individuals.

Businesses are not pouring billions into the economy right now because, against the backdrop of policy uncertainty, continued labour unrest and power-supply constraints, it has become risky to do so.

Under the Zuma administration, economic growth has slowed to a trickle and the country has suffered two ratings downgrades.

It is understandable that many companies are diversifying their risk by investing in faster-growing economies north of our borders.

Good investment decisions ensure that these companies continue to grow and provide employment for millions of South Africans.

Zuma has pledged to work with the private sector to remove obstacles to investment, and to improve relations with business.

For a start, he would do well not to sign the controversial Security Bill which, if enacted, could result in the country facing economic sanctions, shedding large numbers of jobs and drastically driving up the cost of home and business security. The bill, an attempt to force foreign-owned security firms to cede 51% of their ownership to South Africans, has a disturbingly Zanu-PF feel to it.

Unravelling property rights is definitely not the way to build bridges with business.