Details of stimulus package on the way — Mokonyane

Cabinet’s interventions aimed at resolving South Africa’s latest recession will begin to take shape after the upcoming investment and job summits, according to Communications Minister Nomvula Mokonyane.

Mokonyane announced this during a post-Cabinet briefing in Pretoria on Thursday morning. She says that the recession announced by Stats SA on Tuesday was discussed by Cabinet on Wednesday in Cape Town.

The South African economy contracted by 0.7% in the second quarter of 2018, following a revised 2.6% contraction in the first quarter.

READ MORE: SA’s economy dips into recession dashing economists hopes

Mokonyane said Cabinet called on South Africans to get behind government-led initiatives aimed at driving economic growth.

“Although some sectors of the economy, such as mining, construction and finance recorded an improvement in growth, this was insufficient to offset the contraction in other sectors, such as the agriculture sector,” said Mokonyane.

Mokonyane said exports recovered strongly, but that this was offset by contractions in household expenditure. Meanwhile investment growth by private companies increased, but this was met with contraction in public sector investment.

“The upcoming job and investment summits, as well as the proposed government stimulus package, will provide details on the reforms needed to drive growth,” she said.

She said government would pump support into sectors of the economy which showed promise, to compensate for the under-performing sectors which dragged growth figures down.

“We will embark on a complete overhaul of the visa processes to boost tourism, reforms in mining and other reforms needed to drive growth. We remain committed to fiscal stability,” Mokonyane said.

When asked whether there were any immediate measures government could announce to improve the economy’s prospects in the long term, Mokonyane said government was in the process of collecting information needed to establish its stimulus package for the economy.

“The stimulus package has been raised by the president to say it will be presented in a short period. We also had many other engagements, such as a Cabinet Lekgotla and the costing of initiatives. A pronouncement will be made in due time,” she said. — Fin24

READ MORE: R48bn needed for Ramaphosa’s stimulus packages

Khulekani Magubane
Khulekani Magubane

Khulekani Magubane is a senior financial reporter for Fin24. 


Mabuza’s ‘distant relative’ scored big

Eskom’s woes are often because of boiler problems at its power plants. R50-billion has been set aside to fix them, but some of the contracts are going to questionable entities

ANC faction gunning for Gordhan

The ambush will take place at an NEC meeting about Eskom. But the real target is Cyril Ramaphosa

Despite tweet, Zuma keeps silent about providing his taxpayer information

The Public Protector has still not received confirmation from former president Jacob Zuma that she may access his tax records —...

Ahead of WEF, Mboweni will have to assure investors that...

The finance minister says despite the difficult fiscal environment, structural reforms are under way to put SA on a new growth path

Press Releases

New-style star accretion bursts dazzle astronomers

Associate Professor James O Chibueze and Dr SP van den Heever are part of an international team of astronomers studying the G358-MM1 high-mass protostar.

2020 risk outlook: Use GRC to build resilience

GRC activities can be used profitably to develop an integrated risk picture and response, says ContinuitySA.

MTN voted best mobile network

An independent report found MTN to be the best mobile network in SA in the fourth quarter of 2019.

Is your tertiary institution is accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.

Is your tertiary institution accredited?

Rosebank College is an educational brand of The Independent Institute of Education, which is registered with the Department of Higher Education and Training.

VUT chancellor, Dr Xolani Mkhwanazi, dies

The university conferred the degree of Doctor of Science Honoris Causa on Dr Xolani Mkhwanazi for his outstanding leadership contributions to maths and science education development.

Innovate4AMR now in second year

SA's Team pill-Alert aims to tackle antimicrobial resistance by implementing their strategic intervention that ensures patients comply with treatment.

Medical students present solution in Geneva

Kapil Narain and Mohamed Hoosen Suleman were selected to present their strategic intervention to tackle antimicrobial resistance to an international panel of experts.