South Africa requires growth-enhancing economic reforms to improve productivity and export competitiveness and to attract new investment, according to South Africa's 2009 Budget review released today.

"Such reforms, along with a commitment to improve the quality of public spending, are necessary to ensure a return to higher rates of economic growth once global conditions have improved," said the Treasury.

It adds that it is "essential" macroeconomic policies that promote a stable economic environment and prevent inflation from undermining competitiveness are maintained.

It says there will be new emphasis on higher standards of appropriate market conduct and banking-sector regulation as a well-regulated and capitalised banking system is also needed to manage risks.

"Productivity and export competitiveness can be improved by reducing the cost of doing business," said Treasury.

It called for trade reform to lower costs to consumers, reduce input costs, support diversification and promote competitiveness.

"Regulatory reform is needed to facilitate competition, protect consumer rights, support innovation and create greater flexibility in the business environment," said the Treasury.

It added that in some areas, industrial support measures can promote development of new industries and "more work is needed to design effective policies that can boost employment and exports in competitive global markets".