Standard & Poor's credit downgrading of South Africa to junk status, is due to president Jacob Zuma, who once again proved that he puts his own interests above those of South Africa.
Standard & Poor's said that the early decision to the downgrading is linked directly to the reshuffling of the cabinet. It gives proof that Zuma and the new finance minister, Malusi Gigaba, could not establish any trust in the financial world and destroyed the good work of Pravin Gordhan with a single action of Zuma.
It will be the consumers who will pay the price for this because there is a risk that interest rates could rise significantly in the future, the economic growth rate will be more limited and taxpayers will have to pay for increased interest on government debt.
Gigaba`s incompetence is illustrated clearly in the process. Before the announcement of Standard & Poor’s he even said that South Africa will incur more debt to finance projects.
Further rumours that he told the media today that the country will not be downgraded, shows that he is completely out of touch with real economic requirements set by the world at countries that want to borrow money.
The financial suffering of the people of South Africa will only get worse as the financial pressure on the country mounts, and it's all caused by pres. Jacob Zuma.
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