Debt Rescue has predicated the recall of processed meats could have financial implications for poor South Africans.
Debt Rescue says the recall of processed meats will have dire consequences for stokvels and the poor of the country.
The production of polony, russians, cold meats, viennas and other processed meats have been stopped at three major contributors in the sector.
CEO Neil Roets believes the replacement of these meats, usually consumed as staple foods, will have a major impact on debt.
“Contrary to the belief of some, the majority of consumers don’t have spare cash. Most live a hand-to-mouth existence and even small adjustments in price such as the increased VAT rate, can have a major impact on them.”
Consumers in possession of the processed meats will be reimbursed, but Roets argues that cash-strapped citizens will move to credit.
“All other forms of meat such as mince and even the cheapest cuts of beef are significantly more expensive which ultimately is going to have an impact on the nutrition of people.”
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According to Roets more than half of all South Africans are three months or more behind their debt repayments.