S.Africa to debate impact of rand strength-minister

* Labour, companies to discuss rand strength * Currency value impacting trade and competitiveness

CAPE TOWN, Nov 6 (Reuters) - South Africa's economic development ministry has agreed to hold discussions with trade unions and companies on the impact of a strong rand on the economy, a government minister said.

The rand has gained around 20 percent against the dollar and firmed sharply against other currencies this year, making it one of the best performing emerging market currencies.

The central bank and finance ministry has warned that its relative strength could harm sectors of the economy with the country already in its first recession in nearly two decades.

The government has reiterated, however, that while it wants a stable and competitive currency, it is committed to a free floating exchange rate set by the market.

"Private sector representatives and trade unionists have met with my ministry to convey their concerns of the impact of the rand on their businesses and on workers," Ebrahim Patel, Minister of Economic Development, said in a written reply to a parliamentary question.

"We agreed that there is value in a policy platform that we will convene with economists and social partners to dialogue further on this matter," he said.

Labour federation COSATU has called for action to weaken the rand, while companies have also complained its strength is impacting their businesses.