• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

'State handouts hamper growth'

Aug 11 2010 16:56 Leani Wessels

Company Data

DISCOVERY LIMITED [JSE:DSY]

Last traded 90.39
Change 0.88
% Change 0.01
Cumulative volume 680622
Market cap 53.50bn

Last Updated: 24/04/2014 at 04:28. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Rethink on BEE

Davies: BEE not functioning

Zuma appoints BEE council

Zuma: No BEE changes

No more BEE on tap

Finland raises BEE concerns

 
Johannesburg - Government handouts and political patronage stifle economic growth and are an insult to the majority of South Africans, renowned businesswoman Mamphela Ramphele said on Wednesday.

Speaking at the annual Discovery Leadership summit in Sandton, Ramphele said government is not addressing the country's wealth gap.

"At the heart of this failure is government turning citizens into recipients of handouts," said Ramphele.

According to Ramphele, RDP housing is an example of handouts creating a vicious cycle of dependency on government.

"Taking away this ability (of people to build their own houses) adds salt to the wound of indignity and humiliation," she said.

'BEE an empty promise'


She also said black economic empowerment (BEE) has not lived up to its promises. "It has resulted in many unintended consequences, like creating a culture of compliance rather than a culture of transformation," she said. "The focus on political patronage has denied rural people significant benefits."

Also speaking at the conference, Discovery Holdings [JSE:DSY] CEO Adrian Gore said there is no roadmap to success, and many Bric (Brazil, Russia, India and China) countries face bigger problems relating to crime, corruption and social ills than South Africa.

"We are dogged by negativity, and this is fundamentally irrational," he said. Gore said this is largely due to the country being framed as a "poor African state" by international perceptions and media.

"I'm not saying this isn't our reality, I'm saying we can get out of it."

Ramphele said the private sector should engage with government to find solutions for problems like unemployment and poverty, and challenged the country's CEOs to debate the role of the media in the country.

Earlier in the conference, Tokyo Sexwale said the country's media was not at risk of losing its independence.

"I can state from where I sit, from where I stand, that the perception that the leading party is at war with the media is just that - a perception," he said.

"South Africans are made of stellar stuff - we should be able to discuss the media- government relationship," said Sexwale.

 - Fin24.com
NEXT ON FIN24X

 
 
 

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
11 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Nkandla: Zuma 'still looking for undue benefit'

President Jacob Zuma has told supporters at an election rally in Mpumalanga that he had not wrongfully benefited from the upgrade to his Nkandla home.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

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