Though we are still reeling from the April credit rating downgrade announcements by Standard & Poor’s and Fitch, we still don’t know what the long-term economic effects are going to be, and, more importantly, to what extent they will affect ordinary South Africans. A quick search has revealed that it can take some countries up to seven years before any significant changes to their status can be seen. Though consumers will not stop spending, their spending will become more conservative and discerning. SA has one of the highest ratios of debt relative to income in the world. So much debt, coupled with higher inflation rates, will force people to spend more money on essentials such as food, transport and interest payments, which will no doubt eat into their very limited disposable income. Luxury items or services may become a thing of the past for many. Savvy brands are going to have to raise the bar in terms of how they operate. There is a strong likelihood that they will have to reju...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now