Economic stimulus package on its way, vows Cabinet

Mokonyane briefed the media on the latest Cabinet meeting in Pretoria on Thursday. 

South Africa's economy has tipped into recession as it shrunk 0.7 percent in the second quarter. 

The downturn, which was the second consecutive quarter of negative growth, was driven by contractions in agriculture, transport, trade and manufacturing industries.

At the same time Mokonyane admits the government needs to do more to ease the pressure on consumers. 

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"There are processes that take time to yield results, the interventions (that the government is putting in place.) And we then definitely have to deal with balancing all those matters and see how best we can mitigate these kind of challenges.

"Those who are paying taxes, the majority of young people that are unemployed, our own intention is that no one suffers.  Including those who are actually contributing to job creation. That is why we need to look at our own regulatory environment, we need to be looking at our enabling means as government as to whether they are helping to circumvent the challenges that are there. 

Cabinet has also lauded Energy Minister Jeff Radebe's decision to approve an urgent temporary fuel-price intervention measure, which will see the petrol price increase 5c a litre in September.

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"It's actually a decision that seeks to demonstrate that we are a caring government. 

"And the statement released by (Finance) Minister Nene yesterday that indicates that yes, we are facing this challenge but we are in action, doing things that at an appropriate time the government together with the private sector and the people of South Africa, through the president of the country, we will be able to say 'here is the stimulus package, here are the role players'.

"We will even go to an extent of locating the areas where these interventions are going to be taking place."