President Jacob Zuma’s reshuffling of his cabinet is causing further adverse consequences for the economy.
Local traders are feeling it where it counts most, namely their income and profits.
Previously, the Lewis group’s 35% decline in revenue has already been reported. On Monday, the food group, Taste Holdings, announced that they had a loss of R20,8 million.
The Mr. Price group recorded its first weak period in 16 years with a 10,4% decline in revenue this year.
Economists blame Zuma’s cabinet reshuffle, the downgraded status, as well as distrust in the current political leadership’s ability to rule the country during the situation.
Meanwhile, another credit rating is being awaited by Standard and Poor’s, and economists are not optimistic that this rating agency will follow a different route than the other agencies who have already downgraded the country to junk status.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News
