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


Recommended

by NEWSROOM AI
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.

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
CR17: 'Face the nation! Tell us what happened! End this PR disaster'

CR17: 'Face the nation! Tell us what happened! End this PR disaster'

There was nothing illegal, yet the CR17 leaks is a PR disaster for Cyril Ramaphosa, says communications consultant Chris Vick.

Trevor Noah – 4th highest paid comedian on Earth – made R430 million in 2018

Trevor Noah – 4th highest paid comedian on Earth – made R430 million in 2018

Trevor Noah cracked Forbes magazine’s list of highest-paid stand-up comedians in the world.

Want to get rich? Got R100? You don’t need millions to start

Want to get rich? Got R100? You don’t need millions to start

Bruce Whitfield interviews Anthea Gardner, author of "Make Your Money Work for You: Think Big, Start Small".

SA’s richest woman opens up about being a refugee and becoming a billionaire

SA’s richest woman opens up about being a refugee and becoming a billionaire

Magda Wierzycka – Sygnia’s renegade CEO – on her attitude toward money (hopes and fears, successes and failures, etc.).

Former EFF MP: 'I didn't know where the money came from until it was leaked'

Former EFF MP: 'I didn't know where the money came from until it was leaked'

EFF member Tebogo Mokwele and Small Business Development Minister Khumbudzo Ntshavheni respond to leaked CR17 bank statements.

Benguela Global Fund Managers is buying Naspers, Standard Bank and Pick n Pay

Benguela Global Fund Managers is buying Naspers, Standard Bank and Pick n Pay

Zwelakhe Mnguni (CIO at Benguela Global Fund Managers) shares his stock picks of the week: Naspers, Standard Bank and Pick n Pay.

'Debt relief law may cause banks to stop lending to lower-income clients'

'Debt relief law may cause banks to stop lending to lower-income clients'

The Money Show’s Bruce Whitfield interviews Cas Coovadia, Managing Director at the Banking Association of South Africa.

[WATCH] Father and daughter dance-off changes tune when she starts twerking

[WATCH] Father and daughter dance-off changes tune when she starts twerking

Khabazela shares tweets and Facebook posts that have gone viral.