University of the Witwatersrand senior lecturer, Lumkile Mondi, says poor South Africans will mostly be affected by the downgrade.
On Friday credit rating agency, Fitch, said it was dropping South Africa’s status to below investment grade because it believed economic policy was about to change.
The rating agency is the latest to downgrade South Africa to junk status after Standard & Poor’s Global also downgraded the country to junk status last week.
Mondi says the so-called radical economic transformation agenda pushed by President Jacob Zuma and other ministers supporting him will marginalise the majority of South Africans.
It means that it will cost more for government to borrow and to pay back the R2.2 trillion that we owe.— Lumkile Mondi, economist and Wits senior lecturer
For individuals, it means we will see the Reserve Bank coming in because inflation is gonna creep up in the next few months. Petrol price is gonna be coming up in the coming month due to the falling of Rand.— Lumkile Mondi, economist and Wits senior lecturer
For many South Africans there will few cents in their pockets.— Lumkile Mondi, economist and Wits senior lecturer
This whole behavior by those ministers and their friends is really a celebration of impoverishment of South Africans, particularly black people.— Lumkile Mondi, economist and Wits senior lecturer
Mondi says Finance Minister Malusi Gigaba doesn't seem to have a clear economic policy.
Listen to the full interview with Lumkile Mondi below for more economic analysis...
This article first appeared on 702 : 'Ministers (and their friends) celebrating impoverishment of South Africans'