Ramphele wary of small business ministry

The Agang SA leader lashed out at govt departments, saying they have failed entrepreneurs.

Agang SA leader Mamphela Ramphele. Picture: Reinart Toerien/EWN.

JOHANNESBURG - Just two days after reports emerged that sensitive discussions are underway in the ANC to establish a new ministry for small businesses, Agang SA leader Mamphela Ramphele has criticised the move, saying it would only create more inefficiency.

Ramphele took part in a debate on the state of South Africa's affairs, which was hosted by the Daily Maverick in Johannesburg earlier today.

She lashed out at government departments, saying they had failed to nurture entrepreneurship.

"One more ministry isn't going to help. I know exactly how that system works. It's terrible. It is simply another layer to destroy entrepreneurship in this country."

Minister of Public Enterprises Malusi Gigaba supports the move but Ramphele said his support was misplaced.

The minister said the new ministry could be a vital component of growing the small business community.

Earlier this week, ANC Secretary General Gwede Mantashe said the party would create the ministry to deal properly with smaller firms.

There has been a mixed reaction to the proposal, with questions being asked about whether such a department would really help grow the economy.