Brace yourself for higher fuel prices due to junk status

Since the announcement of the Cabinet reshuffle by President Jacob Zuma, two rating agencies have downgraded South Africa’s foreign currency rating to sub-investment grade status (junk status).

But how will the ratings downgrade impact the lives of ordinary South Africans?

Christie Viljoen, economist at KPMG South Africa, says the immediate impact of the downgrade will be seen in fuel prices in the coming month.

In a few months from now, Viljoen says SA's weaker Rand will push up the price of imported goods.

Read: What being downgraded to junk status really means

South Africa imports a wide variety of goods from vehicles, food and clothing, so a price increase will been seen there as well.

Christie Viljoen, Economist at KPMG South Africa

The government needs to pay more money whenever it goes to borrow money abroad.

Christie Viljoen, Economist at KPMG South Africa

South Africans will see a little less of their tax money being spent on local infrastructure... and tax will go up again.

Christie Viljoen, Economist at KPMG South Africa

Click here to hear more from Viljoen:


This article first appeared on CapeTalk : Brace yourself for higher fuel prices due to junk status


702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Could Brics ratings agencies take a different view on SA?

Could Brics ratings agencies take a different view on SA?

Prof Adrian Saville explains what would happen if SA doesn't use the big three credit rating agencies S&P, Moody's and Fitch.

JUST IN: Fitch second ratings agency to slap SA with junk status

JUST IN: Fitch second ratings agency to slap SA with junk status

Ratings agency Fitch has followed suit after S&P cut South Africa's sovereign credit rating to below investment-grade.

Here’s what it’ll take for South Africa to rise from junk status…

Here’s what it’ll take for South Africa to rise from junk status…

It’s hard, but not impossible. Arabile Gumede interviews Argon Asset Management Economic Strategist Dr Thabi Leoka.

Africa Focus: A forecast of South Africa post downgrade status

Africa Focus: A forecast of South Africa post downgrade status

Ambassador Advisory's Refilwe Moloto discusses South Africa's chances of further downgrades and the impact this will have.

We list all the protest action planned for Cape Town this week

We list all the protest action planned for Cape Town this week

Here are details of activities you can get involved in to protest against President Zuma and state capture.

Consequences of being downgraded to junk status: Magda Wierzycka

Consequences of being downgraded to junk status: Magda Wierzycka

Chief Executive Officer of Sygnia Group explains in detail what South Africa would have to go through as a result of a downgrade.

When you find out this is true, it will make you angry

When you find out this is true, it will make you angry

There is no shortage of news stories, but determining which are true is no simple matter.

Unarmed black man shot by Miami cop

Unarmed black man shot by Miami cop

Therapist Charles Kinsey was apparently helping an autistic patient, and put his hands in the air, before being shot.

Popular articles
This tech institute forges top coding talent in SA - for free

This tech institute forges top coding talent in SA - for free

WeThinkCode funds top human talent with the potential to become the future coders of SA, despite their background or experience.

Dr Mbuyiseni Ndlozi opens up about his thesis

Dr Mbuyiseni Ndlozi opens up about his thesis

Ndlozi explains the significance of the the first chapter of his thesis: 'Trauma in the archives'.

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

German prosecutors probing Steinhoff CEO Markus Jooste (for accounting fraud)

The Money Show’s Bruce Whitfield interviews Steinhoff International Chairperson Christo Wiese.

Happy 50th birthday, Pick n Pay (congrats on growing your bottom line by 18%)!

Happy 50th birthday, Pick n Pay (congrats on growing your bottom line by 18%)!

50 years ago the retailer started out when Raymond Ackerman bought three tiny stores from Click founder Jack Goldin.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

Is it normal to have a curved penis? Dr Shingai explains

Is it normal to have a curved penis? Dr Shingai explains

Urologist Dr Shingai Mutambirwa says penile curvature is only a concern if it impedes a man's ability to have penetrative sex.

Nkosazana Dlamini-Zuma's simply did not do her job as  AU chair - analyst

Nkosazana Dlamini-Zuma's simply did not do her job as AU chair - analyst

Analysts weigh-in with very different views on Dlamini Zuma's failures and achievements as chairperson of the African Union.

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?