I know we’ve talked about what junk status means to the people of South Africa already (HERE), but this is a hole that takes some climbing out of so I guess we should all get used to it.

It takes an average of seven years to recover from such a rating, when you look at countries who have fought back from a downgrade during the past three decades (HERE), so it’s not a laughing matter.

That’s unless you happen to count Jacob Zuma as a tight mate, in which case it’s all a bit of fun and games.

Some of the reactions below from the Sunday Times:

…Zuma’s son Edward, said the ratings agencies “did us a favour, really”.

Displaying a breathtaking ignorance of economics, Zuma’s allies cheered the downgrade, which analysts  warn could restrict the country to a low-growth path for decades.

One close Zuma ally, Water and Sanitation Minister Nomvula Mokonyane [apove], told a WhatsApp chat group: “It’s actually better Western investors will pull back and we have an opportunity to bring them back in our own terms, after we have consolidated our relations with Africa and Brics. We must rearrange our foreign debt repayments.”

Another member of the so-called Black Empowerment Foundation chat group, close Zuma associate and SAA chairwoman Dudu Myeni, replied to Mokonyane: “I concur cdes. Let the rand fall and rise and emerge with the masses.”

Hey Dudu, less time on WhatsApp and more time sorting out the money-haemorrhaging SAA, please.

I don’t know how the Sunday Times managed to find out the details of that WhatsApp group, but some of the exchanges in the hours leading up to the sacking of Pravin Gordhan are terrifying:

Edward told the group: “Am going to celebrate this grading decision tonight long overdue hence mama action they must go hang labantu [these people] really now.”

Edward, who has gained notoriety by hurling insults at his father’s critics, appeared to know several hours beforehand that Gordhan would be axed, telling the group at 9pm: “That one is definitely going Rand or not he is out”…

Among the prominent politicians in the chat group are new Communications Minister Ayanda Dlodlo, disgraced former SABC chairwoman Ellen Tshabalala, former South African Chamber of Business CEO Kevin Wakeford, Zuma’s daughter, Thuthukile, and KwaZulu-Natal MECs Mthandeni Dlungwane and Bongi Sithole-Mlaba…

Tshabalala [above], who resigned as SABC chairwoman amid a scandal over allegedly false academic qualifications, was excited last week at the prospect of Gordhan losing his job. He had caused “some of us real agony”, she said.

“Every dog has its day! He mobilized against me. Akahambe kahle! [Let him go well],” she wrote.

Over on BusinessLive, another moron on that group:

Another Zuma ally, Black Business Council president Danisa Baloyi, told the group: “Who really cares?

Many South Africans don’t have billions on the stock exchange. Those with money should transform this economy. Most black people are born in junk status so they aren’t bothered.”

Whether or not you have stocks, when the cost of basic living goes up everyone suffers.

At least the chair of the ANC’s subcommittee on economic transformation, Enoch Godongwana, can see how shortsighted these Zuma cronies are and has called them out.

Below from BusinessTech:

Godongwana was speaking at a media briefing where some of the ANC’s policy documents ahead of the party’s policy conference in June were discussed. He hit out at those who said they welcomed the country’s downgrade to junk status.

He said there can be no radical transformation in the face of a possible recession.

“Recession means the economy is not growing, it’s contracting. If it happens in the context of 27% unemployment, you will be adding more people to the pool of unemployment and be excluding more people from the income stream so that can’t be an inclusive growth,” Godongwana [below] said.

He said there was a need to engage those who had welcomed a ratings downgrade.

“Those comrades who do not understand this particular phenomenon, we still have to engage them to understand the consequences,” he said.

He also isn’t all that keen on the catastrophic Russia deal, which seems to already be in motion:

“We said recently that if we do nuclear, we must do it at a scope and pace which is affordable. The test becomes affordability; will the country be able to afford it?” he asked.

He said South Africa, in light of the junk status would need to “sharpen its pencils” and revise its expenditure patterns.

Someone advocating for fiscal responsibility? I guess we can expect him to get the sack soon, then.

[sources:sundaytimes&businesslive&businesstech]