• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

Don't bank on political ties - Sexwale

Nov 07 2012 18:03
Johannesburg - Business should not rely on political connections for success, Human Settlements Minister Tokyo Sexwale said Wednesday.

"There is no quick fix to business with reliance on political networks of who knows who," he said in a speech prepared for delivery at the Zimele Conference on Enterprise Development in Midrand.

"In entrepreneurial development there is no substitute for hard work, which is a measure of success."

He said no self-respecting business person would want to be known for relying solely on government contacts and political networks.

Entrepreneurs needed to take a stand against corruption.

South Africa's fragile economic situation was further exacerbated by ratings agencies, Standard & Poor's, and Moody's, downgrading the country's credit ratings.

"This has had a further knock-on effect upon sub-sovereign issuers, including metros and other municipalities and state-owned enterprises, all regarded as financially linked to the national government."

Due to these downgrades, South Africa had effectively moved out of the A and into the B-league.

Through the downgrades the agencies were on the brink of warning financiers to be cautious in handing funds to the government in particular.

"This situation has the negative outcome of putting a damper to our much- needed economic recovery as the cost of capital and that of servicing our national debt has increased."

This had further consequences for capital spend, which was critical for national infrastructure development projects.

He said support and development of small and medium enterprises had to be encouraged for economic growth.
tokyo sexwale



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote