President Jacob Zuma's Cabinet reshuffle and the credit ratings downgrade will make it harder for already struggling NGOs to raise money, the Community Chest of the Western Cape warned on Wednesday.
"As it stands, it is hard to raise money for the important work being done by NGOs in this kind of environment and economy," said Community Chest CEO Lorenzo Davids.
Davids said the organisation is worried about how the poor will be affected by higher debt repayment fees and higher food and transport costs arising from higher currency costs.
There could also be a possible increase in inflation and long-term unemployment.
"Whilst we fully recognise the constitutional prerogative of the president to decide on the members of Cabinet, we note with alarm that these appointments are being made at a time of great division in our body politic, as well as at a time of great concern over the state of the South African economy," he said.
"Whilst we seek to believe that the best of intentions are behind this reshuffle, statements made by leading politicians and economists have indicated that this recent reshuffle will diminish the ability of our government to execute its social mandate, and will reduce trust in the legitimacy of key democratic institutions."
Davids said the costs associated with the retiring ministers were also worrying because the government has to pay out benefits and pensions.
Pravin Gordhan and Mcebisi Jonas, the former minister and deputy minister of finance, were among Cabinet ministers and deputies who were fired.
- This article was written by journalist, Jenni Evans. This article first appeared on News24.
Photo courtesy: eNCA