President Cyril Ramaphosa will brief the media on Friday on the economic stimulus package meant to spark economic activity.
This comes after Statistics South Africa (Stats SA) announced earlier this month that the country had entered a technical recession.
Stats SA announced that the country’s gross domestic product (GDP) decreased by 0.7% in the second quarter of 2018.
Since GDP contracted by 2.2% in quarter 1, the country was now officially in a technical recession, which means two consecutive quarters of negative growth.
During a post cabinet briefing on Wednesday, Communications Minister Nomvula Mokonyane announced that cabinet has approved the economic stimulus package.
Ramaphosa met with business and labour leaders last Friday where he shared an outline of the package.
He indicated that the stimulus package will reprioritise government spending, within the existing fiscal framework, towards activities that will stimulate economic activity.
The package will include a defined set of economic reforms covering issues such as mining, telecommunications, tourism, and transport.
The meeting agreed that South Africa’s economic recovery demands urgent implementation of the stimulus package and promised growth-enhancing reforms.
The meeting also discussed proposals to establish an infrastructure development initiative that draws in private sector funding and delivery expertise.
The president welcomed the offer extended by business for the secondment of private sector professionals to the government to improve implementation.
The meeting provided an opportunity for government, business, and labour to exchange views on challenges facing the economy.
Delegates engaged frankly on constraints to growth and entrepreneurship, and issues affecting the lives of citizens, including safety and security.
Business and labour welcomed the measures being proposed to stimulate the economy, alleviate pressure on the poor, and create and preserve jobs.