Companies rated South Africa higher than expected in a recent investment climate survey on issues like crime and government bureaucracy, the trade and industry department said on Tuesday.

Compared to some other countries, advantages for South Africa included confidence in the legal system, low energy costs, a low burden of government regulations and lower levels of corruption.

As far as crime was concerned, this was found to cost companies about one percent of their sales compared to four or five percent in some other countries, said the department's policy head Ravi Naidoo.

"Yes, there is big crime problem, but in terms of doing business it isn't at such large costs," he told reporters in Pretoria.

"It is more favourable than we had thought."

Investment drawbacks for South Africa included a worker skills shortage, exchange rate volatility and high labour costs.

Sapa

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