Laverne Rampono does not have to be told how depressed South Africans have become about the state of the country's economy. It is a picture she knows all too well.
After the company she worked for closed its doors as a result of the declining economy, she has only been able to take up a part-time job at a recruitment agency. This has made life even tougher for her, her husband, their 25-year-old daughter and 16-year-old son.
"All our cuts are due to affordability or reduced income. We've had to downgrade our medical aid and DStv [subscriptions] and re-adjust our bond and car installments. We've also made payment arrangements for school fees and other creditors," she said.
Rampono was unconvinced the situation would be reversed any time soon.
"Politically, this country is in a state of turmoil and uncertainty. We're forced to cope on the bare minimum," she said.
A First National Bank-sponsored study by the Stellenbosch University Bureau for Economic Research released yesterday shows South Africans have been down in the dumps for longer now than any time since the grip of apartheid sanctions.
The consumer confidence index has now been at a negative rating for the past three years, the longest pessimistic streak since the index was launched in 1982.
FNB senior economist Mamello Matikinca warned that, unless South Africa dealt with political instability, the country could slide further into recession, especially if the ANC elects at its conference in December a leader who "is for looting the state".
She warned that if the winning candidate "doesn't care enough to do the right thing", the economy would take a further battering.
"The issue that I want to emphasise [is] - there is not a resource issue in South Africa; we have a confidence issue ... so I think that until there is some level of policy certainty, we're not going to see business participating. We need for the government to at least try to lift sentiment," she said.
The current negative sentiment is also fuelled by soaring food prices. FNB said meat prices in particular would continue to increase until the end of the year - and would probably cost as much as 15% more than a year ago.
South Beach, Durban, resident Sharleen Mdani is feeling the pinch.
"Food prices are ridiculous. I used to go to one supermarket and grab what I needed. Now I'm shopping at many places. I find shopping frustrating these days," the shop assistant said.
She budgets R500 a month for groceries for herself and R1,000 for her family in Pietermaritzburg.
"It's tough. I often leave things like chips and chocolates out of my groceries. Things like soap I buy in bulk," she said.
Another Durbanite, who did not want to be named, said her salary did not go as far as it used to.
The mom, whose youngest child has special needs, said the rising costs of medical treatment was one of the reasons for the shortfall. She had to cut back on extramural activities for her children, downgraded her medical plan and stopped spending money on the home.
"Although I am still positive about our country and I believe we are the most resilient nation compared to other countries, I don't see there being any major improvements any time soon. I think we all need to look at optimising our income and bringing in an additional stream per family," she said.
A Pretoria-based attorney, who did not want to be named for professional reasons, said, like many others, her family had to tighten their belts.
"We are now in a position where we have no choice but to stick strictly to our budget with no room to buy luxuries. Living costs increase every month.
"Where basic groceries cost R1,000 a week three months ago, suddenly it's R1,400 for the same groceries. I refuse to reduce insurance premiums or medical aid costs so that if something happens to me I can at least receive money back to secure my kids' futures," the married mom-of-two said.
Crunch time: SA consumers haven't been this pessimistic since apartheid
Image: Thinkstock
Laverne Rampono does not have to be told how depressed South Africans have become about the state of the country's economy. It is a picture she knows all too well.
After the company she worked for closed its doors as a result of the declining economy, she has only been able to take up a part-time job at a recruitment agency. This has made life even tougher for her, her husband, their 25-year-old daughter and 16-year-old son.
"All our cuts are due to affordability or reduced income. We've had to downgrade our medical aid and DStv [subscriptions] and re-adjust our bond and car installments. We've also made payment arrangements for school fees and other creditors," she said.
Rampono was unconvinced the situation would be reversed any time soon.
"Politically, this country is in a state of turmoil and uncertainty. We're forced to cope on the bare minimum," she said.
A First National Bank-sponsored study by the Stellenbosch University Bureau for Economic Research released yesterday shows South Africans have been down in the dumps for longer now than any time since the grip of apartheid sanctions.
The consumer confidence index has now been at a negative rating for the past three years, the longest pessimistic streak since the index was launched in 1982.
FNB senior economist Mamello Matikinca warned that, unless South Africa dealt with political instability, the country could slide further into recession, especially if the ANC elects at its conference in December a leader who "is for looting the state".
She warned that if the winning candidate "doesn't care enough to do the right thing", the economy would take a further battering.
"The issue that I want to emphasise [is] - there is not a resource issue in South Africa; we have a confidence issue ... so I think that until there is some level of policy certainty, we're not going to see business participating. We need for the government to at least try to lift sentiment," she said.
The current negative sentiment is also fuelled by soaring food prices. FNB said meat prices in particular would continue to increase until the end of the year - and would probably cost as much as 15% more than a year ago.
South Beach, Durban, resident Sharleen Mdani is feeling the pinch.
"Food prices are ridiculous. I used to go to one supermarket and grab what I needed. Now I'm shopping at many places. I find shopping frustrating these days," the shop assistant said.
She budgets R500 a month for groceries for herself and R1,000 for her family in Pietermaritzburg.
"It's tough. I often leave things like chips and chocolates out of my groceries. Things like soap I buy in bulk," she said.
Another Durbanite, who did not want to be named, said her salary did not go as far as it used to.
The mom, whose youngest child has special needs, said the rising costs of medical treatment was one of the reasons for the shortfall. She had to cut back on extramural activities for her children, downgraded her medical plan and stopped spending money on the home.
"Although I am still positive about our country and I believe we are the most resilient nation compared to other countries, I don't see there being any major improvements any time soon. I think we all need to look at optimising our income and bringing in an additional stream per family," she said.
A Pretoria-based attorney, who did not want to be named for professional reasons, said, like many others, her family had to tighten their belts.
"We are now in a position where we have no choice but to stick strictly to our budget with no room to buy luxuries. Living costs increase every month.
"Where basic groceries cost R1,000 a week three months ago, suddenly it's R1,400 for the same groceries. I refuse to reduce insurance premiums or medical aid costs so that if something happens to me I can at least receive money back to secure my kids' futures," the married mom-of-two said.
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