Economist: SA experiencing an investment recession
Professor at the NWU School of Business & Governance, Raymond Parsons, says weak governance and policy uncertainty have led to an "investment recession".
Parsons released the latest Policy Uncertainty Index (PUI) in Rosebank on Thursday.
The index moved further into negative territory in the third quarter, down from 53.1 in the second quarter to 53.6.
Parsons says the latest drop in the index is mostly due to the uncertain political situation in South Africa.
"A lot of it is noise of course with no real market implications. But underneath it there are more serious issues which worry business and worry the markets.
"There is the possibility of another cabinet reshuffle. We make the point in the document, if you look at the research that's been done recently on the turnover in the directors-general and in cabinet ministers, it is quite horrendous. And from that you can already see a source of uncertainty.
"Some of the things we don't understand why they aren't being done, or being done properly, it comes a lot from that turnover in cabinet ministers and in directors-general.
"Never mind policy uncertainty, that also has a damaging impact on implementation and on delivery."