Africa-Press – South-Africa. The Cabinet lekgotla hosted by President Cyril Ramaphosa and his executive will likely formulate a plan to deal with the economic harm to citizens caused by rising fuel and food prices.
On Monday, Ramaphosa hosted the first lekgotla to be held in person in more than two years since the Covid-19 pandemic began.
Familiar faces at the meeting included ministers, premiers and directors-general of different government departments.
A lot has happened in the country and globally since the last meeting took place.
Russia invaded Ukraine in February, leading to a global food shortage and rising oil prices.
The US, European Union and UK have tightened their fiscal belts through interest rate increases to curtail inflation. The SA Reserve Bank has done the same.
The country has also experienced an increase in xenophobic attacks.
Other trends include rising crime statistics, corruption and load shedding.
While the lekgotla was under way at the Presidential Guesthouse in Pretoria, Minister in the Presidency Mondli Gungubele said the above factors would be top the agenda at the gathering.
The most crucial was the country’s economic outlook.
Load shedding was a regular feature of South African life this past winter, and its impact on the economy was a concern, Gungubele said, adding:
“One of the reasons we are concerned is that top economies have tightened their financial stuff regarding interest rates because of the inflation they are confronted with. That has an impact on emerging economies like ours,” Gungubele said.
The minister added the government remained concerned about balancing the fiscal outlook while balancing spending and debt.
“How will those top economies affect our fiscal framework, which is key in ensuring we stay afloat and pay our debts and close the deficit. There will be discussions about budget pressures and expenditure pressures. Safety and security measures on economic growth.”
Gungubele said the government would also be assessing the implementation of infrastructure projects.
But the most significant talking point for the meeting will be whether the government can develop a package to help alleviate pressure on citizens caused by rising fuel prices.
“For fuel, some is out of our control, but there is a part that comes from our taxation. Overall, the lekgotla is going to come up with a package on how we improve the situation,” the minister added.
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