President Jacob Zuma's State of the Nation speech was positive considering the socio-economic challenges facing the country, Business Unity South Africa (Busa) said on Wednesday.

Earlier, Zuma made his maiden State of the Nation address to Parliament in Cape Town.

According to Busa, Zuma's address struck the right balance between continuity and change in policy.

"The emphasis on strengthening public sector delivery is particularly essential. Busa supports the concept of accountability through performance instruments, established targets and output measures and looks forward to scrutinising detailed project plans."

Busa also welcomed the collective efforts to expedite infrastructural spending and to revitalise the education, health and criminal justice systems.

"These measures are an important ingredient for promoting investor confidence and enhancing South Africa's global competitiveness," it said.

Particularly welcome was Zuma's commitment to assist small business and to reduce the costs of doing business in South Africa in order to encourage an enterprise-driven economy.

"In general, Busa would like to see greater use of Public-Private Partnerships building on those already planned in the health care sector."

The organisation endorsed the need to fast track those elements in the framework response document to the international economic crisis - such as local procurement - which still had to be implemented.

"These measures will help to both boost business confidence and minimise job losses."

The priority now was to ensure that the South African economy was successfully positioned to take advantage of the business cycle when it turned and to attract the investment it needed for growth and development, Busa said.

"Overall Busa believes that partnership and social dialogue are essential factors in building a truly inclusive economy and society in South Africa."