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The Cabinet meeting today, 21 October, dedicated most of its time to a briefing and discussion on the macroeconomic situation facing the country as well as a report on the recent Annual Meetings of the IMF and World Bank. The meeting noted the strength of South Africa's economic fundamentals and expressed the confidence that, after the recent turmoil in the financial markets, the outlook for the South African economy was encouraging.

In this context, Cabinet considered matters pertaining to the 1998/99 adjustment estimates and the Medium-term Expenditure Framework (MTEF). It also noted relevant results of Census 96 with regard to their implications for budget allocations. These matters will be further canvassed by Cabinet in future meetings, and the outcome thereof will be communicated by the Minister of Finance in the context of the MTEF budget cycle.

Cabinet also welcomed progress that has been made in preparation for the Jobs Summit scheduled for 30 October, and it noted that the Summit has the potential to break new ground in identifying practical job-creation programmes on the basis of a partnership between government and various sectors of civil society. The meeting also approved the approach of government and its contribution tot the NEDLAC Framework Agreement on the Social Plan to alleviate the effects of any retrenchments.

Cabinet was also briefed on progress towards making recommendations on acquisitions for the South African National Defence Force. Noting the multi-faceted benefits that would accrue from these acquisitions as well as the costs, Cabinet resolved to consider the final recommendations at its next meeting, after which relevant announcements will be made.

The meeting accepted the contents of the Six-Monthly Report of the National Conventional Arms Control Committee. It also adopted the White Paper on South Africa's participation in peace missions, as well as guidelines for capacity-building in the SANDF for such missions.

Cabinet also welcomed progress that has been made in Lesotho towards a lasting political settlement. The meeting noted that these developments were in part a result of the decisive contribution made by SADC countries, including the military intervention which has helped lay the basis for stability in that country.

The meeting also noted progress towards the handing over of the TRC Interim Report on 29 October, as well as preparations for the Public Sector Anti-corruption Conference which is to be held in November as part of the process towards the National Anti-corruption Summit scheduled for early next year.

The meeting also approved appointments into the boards of leading structures of the SA Civil Authority, Special Pensions Fund, Industrial Development Corporation, Interim Statistics Council, Council for Scientific and Industrial Research, Central Energy Fund (the Chairperson of which will be Mr KS Kunene), Commission for Conciliation, Mediation and Arbitration, National Lotteries Board, and the National Advisory Council on Innovations.

Cabinet approved recommendations arising from the institutional and system-wide review of South Africa's Science. Engineering and Technological institutions. It also agreed to the further development of the Battle of Ncome ("Blood River") Legacy Project.

The meeting also authorised South Africa's participation in the drafting of the International Convention on Crime in Cyber-space, which will include measures against child pornography on the Internet.

Cabinet received a briefing on preparations for the All-Africa Games to be hosted by the city of Johannesburg next year, and it reiterated the commitment of national government to assist wherever practicable.

For further enquiries, contact: Joel Netshitenzhe 082-900-0083

Issued by: Government Communications (GCIS), 21 October 1998

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