This follows a GDP contraction of 2.2% in the first quarter of the year. A technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's gross domestic product, or GDP.

Meanwhile, further strain on consumers has been slightly averted with the announcement of the intervention by the Department of Energy to limit the fuel increase to only five cents per litre. This to cover the cost of wage increases of frontline staff at service stations. Senior agricultural economist at FNB Agri-Business, Paul Makube, says in a media statement at current levels, the cost of producing and transporting agriculture commodities continues to erode profit margins. This as about 80% of grain is transported by road. He says these costs will gradually be passed on to consumers.

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Oral submissions in Parliament, regarding the amendment of Section 25 of the Constitution which will allow for expropriation of land without compensation, continue today. The Joint Constitutional Review Committee (CRC) says a divergence of presentations were heard on Tuesday. Academics and agriculture organisations, like Grain SA, and the Agricultural Business Chamber, Agbiz, were generally not in favour of an amendment. It was argued that it will not address land reform. The Congress of South African Trade Unions (Cosatu) were, however, in support of the expropriation of land, either by way of a constitutional amendment or necessary legislation. Co-chairperson of the committee, Lewis Nzimande, says this is the last leg of the public consultation process. The oral submission process continues until Friday.

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