US ambassador to South Africa Reuben Brigety’s allegations that the country supplied Russia with weapons have left citizens uncertain about a number of things including the country’s ailing economy.
Sunday World took to the streets on Friday to find out how South Africans feel about the allegations, and how this will directly or indirectly impact their livelihoods.
Bradley Johnson said should the US place South Africa on sanctions, this will affect him badly because his business is mainly based in the US.
“I will be affected in terms of the work that I do. I purchase most of my equipment in the US, and seeing the rand weakened like that will mean I have to dig deep in my pockets to buy the equipment,” he said.
Johnson said other than that, he believes South Africans can do well without the US.
“It is going to benefit those who work for US-based companies, as their salaries will be a bit better if the rand continues going down like this.”
Anda Mangxaba, business development executive for a property fund, said if the country was to be hit with sanction, that will have a negative impact on the cost of living.
“The cost of living is already high, and it is only a matter of time before it gets worse. Things are about to get heated,” Mangxaba said.
Speaking about the interest rate, Mangxaba said there is likely going to be an increase in the repo rate in the next quarter.
“I think the governor [of the Reserve Bank], Lesetja Kganyago, will use every tactic at his disposal to increase the repo rate by higher basis points compared to the last quarter.”
Mangxaba said should South Africa lose relations with the US, this is where being part of Brics will be beneficial.
“Brics has been saying they want to replace the dollar by creating another currency, this will present an opportunity to actually employ those ideas.”
One of the citizens who preferred to remain anonymous said sanctions will affect South Africa’s economy, noting that because South Africa relies on the West for trade, it is going to be a major blow to the country.
“To survive these sanctions, we might need to strengthen our relations with the Brics countries in order to stabilise our economy,” she said.
A worried resident, Solomon Mathebula, said South Africa and the US have strong ties economically.
“There is a lot at stake for America to sanction the Republic, meaning even if the accusation is proven to be true, the US will not sanction based on this development. Both countries benefit from one another economically,” shared Mathebula.
On the other hand, Sibusisiwe Ndlangamandla noted that the US knows the power of Brics.
“Should the US attempt to cut ties with SA, it will lose the bilateral relations, meaning that it will be affected the same way SA would.”
Koketso Monareng said the rand has been suffering for too long and has affected economic growth largely based on different factors.
“Some of these factors include Covid-19, high employment rate, and most importantly energy crisis, which has played a huge role in destabilising our economy.
“There’s a lot of uncertainty in terms of investors coming to do business in our current state of energy,” added Monareng.
He added that until the government finds an effective mechanism to revitalize the economy, particularly in creating sufficient jobs for young people, the economy will continue to struggle.
Speaking on how the current rate of the rand will have an impact on her, Ayanda Pieters said the cost of living will be much more expensive.
“Not only will I be affected, but ordinary citizens will find it difficult to make ends meet due to the economic meltdown.”
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