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Viewing cable 04PRETORIA5303, Amcham Business Climate Survey - 2004

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Reference ID Created Released Classification Origin
04PRETORIA5303 2004-12-08 14:01 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Pretoria 
This record is a partial extract of the original cable. The full text of the original cable is not available.
 
UNCLAS PRETORIA 005303 
 
SIPDIS 
 
USDOC FOR 4510/ITA/MAC/AME/OA/DIEMOND 
TREASURY FOR OAISA/JEWELL 
USTR FOR PCOLEMAN 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: BEXP ECON EINV SF
SUBJECT: Amcham Business Climate Survey - 2004 
 
Sensitive but Unclassified; Protect Accordingly.  Not 
For Internet Distribution. 
 
1.  (SBU)  In the American Chamber of Commerce's 
(Amcham) 2004 Business Climate Survey, 62 percent of 
companies viewed the business climate as "Excellent" 
or "Good," up from 50 percent last year.  Three times 
more companies have increased confidence in the 
government's ability to improve the business 
environment, and almost one-half (48 percent) the 
companies planned to invest more in the coming year, 
up from 41 percent last year.  The survey, conducted 
in October, covered 65 Amcham member companies 
employing over 100,000 South Africans. 
 
2.  (SBU)  As last year, respondents most frequently 
cited "Healthy Economy/Macroeconomics" and "Stable 
Government" as favorable factors influencing business 
and investment.  Companies also cited "Future 
Potential of South Africa" as a positive investment 
factor.  The most frequently cited negative factor 
was local equity ownership requirements in BEE 
charters (74 percent versus 45 percent last year). 
Crime and security was the second most frequently 
cited negative factor, but at a slightly lower level 
this year (57 percent against 64 percent).  Exchange 
rate controls and volatility were the third most 
frequently cited negative factor, but again by fewer 
respondents (32 percent versus 37 last year). 
 
3.  (SBU)  The Department of Trade and Industry (59 
percent positive), the National Treasury (48 percent 
positive) and the South African Revenue Service (43 
percent positive) received the most favorable ratings 
among government departments.  The Department of 
Health (18 percent positive) again received the 
lowest rating.  Telkom and Eskom received mixed 
ratings suggesting inconsistency of service. 
 
4.  (SBU)  The full survey will be sent by e-mail to 
AF/S, Commerce and USTR.  Amcham plans to send the 
survey to the South African government on December 13 
and issue a press release.  FRAZER