Impact of SA's economic decline to SMEs

South Africa, known as one of the biggest economies in Africa, is currently facing a challenging economic climate due to recent downgrades to junk status and entering a recession. The impact of these events is being felt across various sectors, especially on small and medium-sized businesses. CNBC Africa's Aviwe Mtila went to the streets of Johannesburg to investigate how these changes are affecting entrepreneurs in the region. Johannesburg, often seen as the promised land by many Africans seeking better economic opportunities, is now struggling amidst the economic turmoil. Many individuals from different African countries have migrated to Johannesburg in search of money and hope, leaving behind their families and risking their lives to cross borders. However, the once promising environment is now overshadowed by economic hardships. Small businesses like hair salons are feeling the brunt of the economic downturn. Jessica Mutdoyngi, a 36-year-old stylist from Zimbabwe, has been working at a salon in Johannesburg for seven years. She expressed concerns about the declining business activity, attributing it to the weakening economy. Mutdoyngi mentioned that even on days when the salon is full, they struggle to make enough money to cover rent. The lack of clients has made it increasingly difficult for her and other stylists to make ends meet. The quiet streets and empty salon chairs are a somber reminder of the challenges faced by entrepreneurs like Mutdoyngi. Street vendors in the CBD echoed similar sentiments, highlighting the decrease in foot traffic and sales. The uncertain economic future has left many small business owners anxious about their livelihoods. As South Africa grapples with entering a recession, the outlook appears bleak for entrepreneurs who rely on daily sales to sustain their businesses. Mutdoyngi, a mother of three, remains hopeful despite the challenges, relying on her faith to see her through tough times. She emphasized the importance of staying positive and believing that things will eventually get better. The situation in South Africa serves as a stark reminder of the disproportionate impact economic downturns can have on small business owners. As the country navigates through these turbulent times, the resilience and determination of entrepreneurs like Mutdoyngi are what will drive them forward.