Johannesburg - Independent business lobby organisation, Sakeliga, says South Africa’s political risk is worse today than it was three years ago under President Jacob Zuma.
In a statement issued on Sunday, the organisation said international diversification to hedge against local political risk is becoming a norm. This deduction was made from a poll it conducted among its members and subscribers last month and the poll had 261 respondents.
The statement by Sakeliga comes at a time when South Africa’s political risk, together with its rising debt and “bloated and ineffective" civil service, has been a concern for rating agencies and economists.
The chief executive of Sakeliga Piet le Roux said as a result of the political risk, hedging against political risk in South Africa is eminently sensible. He said “State-proofing” enables businesses to continue local operations and protects the economy against an intensifying political storm and without it, the South African economy would be in much worse shape soon.
He added that while true that some businesses and executives are exiting South Africa altogether, they were yet find evidence of a wholesale exodus. Rather, they saw numerous signs of healthy strategic hedging against the rising political risk.