With the rand hitting an all-time low on Friday, breaching the R19/$ mark it is now crystal clear that South Africa is staring tough times in the face.
This, while other emerging markets like ours are severely impacted by Covid-19 and are expected to fare even worse over the next few months when the full impact of the pandemic hits home.
This most recent blow to the country and the economy was dealt by international ratings agency Fitch when it downgraded our long-term foreign currency debt from BB+ to BB with a negative outlook, a week after Moody’s stripped South Africa of its last remaining investment grade.
Government has responded by committing to implement structural economic reforms to address the weak economic growth, constrained fiscus and ailing state-owned companies.
The effect of the weakening rand, downgrades by Fitch and Moody’s and the impact of Covid-19 amidst deteriorating growth prospects will stretch workers, the unemployed and the poorest of the poor to the limit.
UASA urges our members and all citizens not to panic but to be cautious and make informed financial decisions during these difficult times. Consulting with financial advisors, reaching out to your financing houses and listening to advice from experts will paint a clear picture for you to make informed decision.
We are hopeful that the rainbow nations’ resilience will shine through once more and we will get through these uncertain times.
For further enquiries or to set up a personal interview, contact Stanford Mazhindu at 074 978 3415