All parties should be free to campaign across the country, he said on Monday.
"We should be able to shun and frown on those who create no-go areas."
Addressing an open debate at the University of Johannesburg on the formation of the breakaway party, Shilowa said democracy entailed that parties had the right to go to the public and explain who they were.
"We have the right to go to the market place and share ideas...say who we are and this is what we stand for, " Shilowa said.
Referring to membership of various parties, Shilowa said large numbers did not necessarily mean a party would win the majority vote.
''It's not the membership you have that ensures a win, it's the message, consistency and hope. No amount of insults will stop us," he said.
Commenting on the new party's convention slated for November 1, Shilowa said delegates would deliberate on among other issues, whether the country's electoral process was still adequate.
"Is there any merit to change the electoral process. Should the President, Premiers, Mayors be directly elected by the electorate," he asked.
Shilowa said South Africans had matured enough to have a direct say as to who their leaders should be.
He said the convention would be open to all South Africans.
"You cannot choose which South Africans you want to dialogue with... Helen Zille for example will be allowed to come. You will not read any headline that says Zille barred from the convention," Shilowa said.
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