Those who dismissed – even joked – about South Africa’s recent downgrades were either displaying unbelievable arrogance or dangerous ignorance. While the brunt of ‘junk’ has been softened by the fact that the country’s local currency debt remains investment grade, the impact will, nevertheless, be felt in the form of more expensive debt and lower growth. Both will exact a very humourless toll on a country already struggling with low growth, high levels of poverty, inequality, unemployment and rising indebtedness.