Debt Rescue has warned South Africans to prepare for the worst after Moody’s downgraded the country’s credit rating to junk status.
The company’s CEO Neil Roets says while ordinary people will not feel the impact of the downgrade directly, it will have a severe impact on the rand.
“It will affect foreign investments that could dry up, which would mean that foreign countries won’t want to invest in South Africa which will then reduce the buying power of the rand. This means South Africans will get poorer every day.”
He says the current lockdown will also have a long-lasting impact.
“The reality is that South Africans are suffering and have been suffering before the coronavirus, but now with the virus and the downgrade, things are going to get tough and people need to brace themselves for difficult times because it is only speculation but we feel that the lockdown might take longer than 3 weeks.”
Roets has urged South Africans to cut down on expenses, save money, draw up emergency budgets and stick to them.