KZN Finance MEC tells young business owners to put integrity first

Young people starting businesses should rely on hard work, honest dealings and careful money management, KwaZulu-Natal Finance MEC Francois Rodgers has said, according to SAnews.

He spoke at a recent session with young business owners, organised together with the South African Institute of Professional Accountants (SAIPA) and Standard Bank. Rodgers said entrepreneurship can open up income and jobs for youth, and that young professionals have a part to play in growing the provincial economy and in building what he called a capable and ethical State.

“It takes courage to build a business,” Rodgers said. He added that business owners must work hard to earn an income and create openings for other young people.

No direct funding from provincial Treasury

Rodgers made it clear that the provincial Treasury does not give money straight to entrepreneurs. It can, however, offer guidance on managing finances. He urged young business owners to improve their financial knowledge so their enterprises can last.

Tough words on state-owned companies

The MEC also turned to the way public money is handled, focusing on state-owned enterprises (SOEs). He said the country already has plenty of policies, commissions and turnaround plans. What is missing, in his view, is the political will and discipline to carry out real reform. He wants the focus to move from describing the problems to delivering solutions that improve performance and give the public value.

Rodgers said a state-owned company should have a clear public purpose, such as supplying electricity, moving people and goods, delivering water, building infrastructure or supporting growth. Such entities should be judged on whether they meet their mandates, deliver services, stay financially sustainable and follow ethical governance.

“There is nothing developmental about continuously funding failure,” he said. He warned that repeated bailouts strain public finances and take money away from schools, clinics, roads and water infrastructure.

According to Rodgers, any government support should be conditional, transparent, time-bound and tied to measurable reform. He also called for:

• transparent board appointments based on competence;
• no political interference in procurement, appointments or commercial decisions;
• early-warning systems to spot problems before they become crises;
• firm action on audit findings that keep recurring.

He said solutions must suit each entity and could include restructuring, consolidation, strategic partnerships and partial private sector participation. Where an entity has no sustainable mandate or credible recovery path, he said, government must be ready to consider closing it.

What this means for ordinary South Africans

Young people thinking of starting a business should note that the provincial Treasury will not fund them directly, though it can help with financial management advice. More broadly, Rodgers linked the fate of failing state entities to the money available for local services such as schools, clinics, roads and water.

This story is based on reporting by SAnews.