This is according to the economics cluster this week, headed by acting minister in the Presidency Nosiviwe Mapisa-Nqakula and Gugile Nkwinti.
Several measures had been taken to kick-start the economy, including building infrastructure in the former homelands and townships.
The government projected 5% economic growth in the next five years, but external factors had slumped growth, resulting in growing unemployment.
Mapisa-Nqakula said the meeting between President Jacob Zuma and business last week was the first package of measures to ring in changes to the economy.
Business, labour and the government met in Pretoria last Friday to look at progress made to kick-start growth.
“Cabinet welcomes the announcement by ratings agency, Moody’s, which reaffirmed the country’s credit rating at two notches above sub-investment grade,” said Mapisa-Nqakula.
Rating Agency Moody maintained South Africa’s negative rating – a sigh of relief for the government as there were fears that South Africa could be downgraded.
This would have led to capital flight, increased costs of borrowing, high unemployment and a decline in the economy but interventions in the economy would begin a cycle of growth, says Nkwinti.
According to Moody, SA was on a good path to recovery.
