FINGERS are again being pointed at South African businesses for not investing their cash piles to revive the country’s moribund economy, but analysts say the criticism is unjustified.Analysts say private companies, which generate two-thirds of all investment in SA, should not be blamed for the dearth of investment, as cash is just one aspect of the investment trail in an uncertain political and economic environment.Trade and Industry Minister Rob Davies said last week the government was committed to enhancing business confidence in the economy for companies to invest the R600bn worth of cash on their balance sheets."Being cautious may not be such a bad thing as companies face a number of uncertainties," said Inkunzi Investments analyst Petri Redelinghuys.These included a possible hard Brexit in the UK, US rate increases and doubts about the survival of the domestic economy, he said.SA’s investment spending amounts to 19% of GDP, which is low by emerging market standards. China inves...
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