Business Leadership South Africa Says Zuma Is 'Directly Responsible' For Our Junk Status

"The cost of the downgrade, the poor in particular, will be felt in higher interest rates, higher inflation, higher food prices and lower economic growth."
Siphiwe Sibeko / Reuters

Business Leadership South Africa (BLSA) believes that President Jacob Zuma is directly responsible for South Africa's catastrophic rating downgrade by Standard & Poor's [on Monday].

Prior to the [president's] ill-considered decisions on the restructuring of the Cabinet, South Africans working together had made sufficient progress on economic growth, structural reforms and fiscal consolidation to maintain our investment grade rating and engender confidence that was reflected in the gradual strengthening of the Rand.

The cost of the downgrade to all South Africans, the poor in particular, will be felt in higher interest rates, higher inflation, higher food prices and lower economic growth, which will reduce investment and employment. In addition, capital from international investors will be less available and more expensive for the funding of government, SOEs, projects and companies.

President Zuma has done South Africa great harm, and should be held to account by all South Africans.

Close

What's Hot