19 November 2004

South Africa's business environment is positive, with a low political and security risk, says London-based business risk assessment consultancy Control Risks Group.

The findings, in RiskMap 2005, an annual study and forecast of political and security risks across the globe, follows a much publicised debate between South African President Thabo Mbeki and Anglo American CEO Tony Trahar.

Trahar suggested in an interview that political risk was still an issue in South Africa, a view subsequently challenged by Mbeki.

Now the internationally respected Control Risks Group says violent crime is low in SA, that the authorities provide effective security, and that there is virtually no political violence.

The study says business in South Africa will benefit from the government's macro-economic policies, and indicates that its empowerment policy will help the government achieve economic redistribution.

This is in sharp contrast to the view that South Africa's black economic empowerment drive is a business risk, Business Day reports.

The report is likely to fuel South Africa's economic growth and help better its image as an investment destination.

"Low security risk" means assets and personnel are not at risk - except from isolated incidents or petty crime - making normal business operations tenable. "High security risk" is when there are severe risks to assets or personnel.

On the negative side, the study says there is room to improve the delivery of basic social services to the poor - including housing. It has also criticised the roll-out antiretroviral drugs for people with HIV/Aids.

But the group says South African businesses are promoting good governance, and seem to recognise that good governance and transparency set the trend for the rest of Africa and promote foreign investment.

In Africa, Somalia is the only country still rated by Control Risks Group as an extreme political and security risk. Burundi, Côte d'Ivoire, Guinea, Liberia, Togo and Zimbabwe are all rated high political risk, Business Day reports.

SouthAfrica.info reporter

	Johannesburg, South Africa's financial capital

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