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... I have received many representations to reconsider my decision.
As a democratic government, we emphasise the importance of listening to the people and to respond to their views.
"If anyone still does not think we are in a banana republic, they cannot be helped. Zuma is a humiliation and disaster for South Africa, who prioritizes personal aspirations at the expense of the country. The ruling party should now appreciate that the country is more important than the personal interests of one individual,” -Mbuyiseni Ndlozi
“Zuma has lost control. It's clear that he has been told that the decision he has made is costing the country.” - Bantu Holomisa
"JZ is not fit to be a head of any government. I call on him and his sycophantic supporters to step aside for the state of our country... We are nothing but a laughing stock in the whole world." - Zwelinzima Vavi
“Zuma must stop playing Russian roulette with our economy. Both these decisions have an impact on the poor in South Africa.” - Mmusi Maimane
On Tuesday and Thursday, the Reserve Bank will hold its usual scheduled bond auctions to raise funding for government operations. That funding is now going to cost almost 17% more to service. Typically, about R4-billion is raised per fortnight. If the same amount is raised this week, it will cost us R70-million more than it would have in interest per year.
Over the course of a year’s fundraising, it will add up to R1.8-billion extra in debt service costs.
That is a burden we will all share as taxpayers, but then there is the effect on us as consumers. Every drop of oil and tonne of maize we import will cost 10% more. Thanks to the drought, we are set to be major net importers of food this year.
With foreign funding closed to it, it will have no choice but to increase taxes, probably both VAT and income tax. That will further restrain consumers’ ability to spend in the economy. The heightened tax burden, higher interest rates and higher inflation will further damage consumer and business sentiment, leading to cash-hoarding and risk-averse behaviour. That will wipe out fixed investment spending, the main driver of sustainable economic growth.