Debt Rescue blames Zuma for credit rating downgrade
Debt Rescue says Jacob Zuma disregarded about 10 million South Africans who are over indebted.
CAPE TOWN - Debt Rescue says President Jacob Zuma failed to keep in mind those who are struggling financially when he made his Cabinet reshuffle.
The organisation has blamed Zuma for the recent credit downgrade, saying while he was making political decisions, he disregarded about 10 million South Africans who are over-indebted.
On Monday, ratings agency S&P Global downgraded the country to junk status, citing political and institutional uncertainty.
Debt Rescue CEO Neil Roets says President Zuma’s decisions may see more South Africans unable to service their debt.
“President Zuma, in his decision, didn’t do anybody any favours, definitely not the people who are already struggling financially. The consequences of his conduct are just going to put consumers at a worse condition.”
At the same time, financial commentator Qhubekile Segabi says South Africans should be extra cautious before taking on new debt.
Economists have encouraged consumers to cut out unnecessary expenditure and to buy as much Proudly South African products as possible.
(Edited by Winnie Theletsane)