JOHANNESBURG, Dec. 12 (Xinhuanet) -- Although American companies operating in South Africa were more positive about the local economy in 2004, there was now more concern over forced local equity than crime, a survey revealed on Sunday.

    Black economic empowerment "negatively affected investment decisions," according to an overwhelming 74 percent of respondentssurveyed by the American Chamber of Commerce in South Africa (AmCham). This grouping had grown from 54 percent last year.

    "This issue also received the single highest number of voluntary comments in the open-ended questions section," said Luanne Grant, director of AmCham, which surveyed 65 US companies operating locally, which employ 100,000 people.

    However, Grant said the survey environment differed from last year in that the 2004 survey was dominated by negotiations on transformation charters in most sectors of commerce and industry.

    He also stressed that most US companies were embracing the broad tenets of empowerment and were pursuing policies that encouraged it.

    On crime, 57 percent of respondents referred to "business crime" specifically and stated that it had a "negative effect on business decisions."

    This concern had dropped from 64 percent last year, according to the survey.

    Third on the "worry list" was the poor regulatory environment created by the Department of Health.

    In spite of their worries, 62 percent of respondents reported that the current economic climate was "excellent" or "good," compared with 50 percent who said so last year.

    "Encouragingly, three times more companies have increased confidence in the government's ability to improve the business environment, compared with companies that have less confidence in the government's ability to do so," said Grant.

    "Even more positive is the fact that almost half the companies report that they plan to invest more in South Africa in 2005 than in the previous year."

    "Only 15 percent have reported 'less investment', a similar figure to the 2003 survey." AmCham further reported, adding that relationships with and service from government departments was "generally good" - a major exception being the Department of Health.

    The most regularly cited positive factor was in the area of thegovernment's macroeconomic policies, reported overwhelmingly as "stable or healthy."

    "The most favorable voluntary comments were received on the performance of the Department of Trade, their trade policies in general and attempts by them to improve the regulatory environment."

    The department and the South African Revenue Services were the highest rated government departments. Enditem