Cabinet has called on South Africans and business to have faith and rally behind President Cyril Ramaphosa’s soon-to-be announced economic-stimulus package.
The plan is aimed at boosting economic growth.
This comes after Stats SA reported on Tuesday that the country’s economy had slipped into a technical recession.
At a post-cabinet meeting media briefing by the Communications Minister, Nomvula Mokonyane, she quelled concerns over the recession.
The Cabinet met on Wednesday with the economy, fuel price hikes and land reform featuring high on the agenda.
Mokonyane says, “Economic growth has slowed down significantly over the last four years. This reflects factors such as drought conditions in the agricultural sector and low commodity prices; but also domestic structural constraints which have discouraged investment and employment creation.”
Cabinet also welcomed Energy minister Jeff Radebe’s fuel price interventions, giving motorists some relief as government is to absorb the September 25 cents fuel price rise.
Mokonyane says, “Cabinet welcomes the unchanged fuel price for this month as a once-off temporary relief for users of public transport, motorists and consumers, while other measures are being sought by the Department of Energy.”