The downgrading of SA’s debt to junk territory will have significant consequences: our cost of borrowing will increase and investor sentiment towards our equity and bond markets will decrease.

However, while I’m not downplaying the difficult times ahead, I’d argue that it won’t be as painful as expected, and that this final downgrade may be the not-so-gentle push that the government needs to fast-track structural reforms and make real inroads in turning around the economy...

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