SABC News - Economic challenges set to dominate agenda at Cabinet lekgotla:Tuesday 2 February 2016

Economic challenges set to dominate agenda at Cabinet lekgotla

Tuesday 2 February 2016 05:54

Tshepo Ikaneng

The recent fall of the rand has triggered a hike in import prices.(SABC)

Government's plans to boost investor confidence and stimulate economic growth will come under discussion at the Cabinet Lekgotla which gets underway in Pretoria on Tuesday morning.  

The five day meeting, which will be chaired by President Jacob Zuma and his deputy Cyril Ramaphosa, comes at a critical time for the country's struggling economy.  

Recommendations by the Lekgotla will lay the foundation for President Zuma's State of the Nation address in Parliament next week.  

The Lekgotla comes a few days after the African National Congress (ANC) National Executive Committee Lekgotla instructed government leaders and senior officials to do everything in their powers to avoid another credit ratings downgrade and recession.  

The recent fall of the rand has triggered a hike in import prices and the severe drought is driving up costs of basic foodstuffs.  

The request by Eskom for electricity price hikes and the decision by the president to approve the law preventing retired workers from cashing their pension has angered the Congress of South African Trade Unions (Cosatu) and others.

The Lekgotla is also expected to discuss suggestions that government cut social spending and raise tax for the rich to boost dwindling government revenue.   

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