Because the economy will suffer, we run the risk of a downgrade from the ratings agencies. With #DayZero fast approaching in the Western Cape and the possibility of taps running completely dry, South Africa’s economy could be severely affected if water refugees embark on a mass exodus to other provinces. Added to this, experts say the Western Cape drought also has the potential to widely affect a number of sectors, resulting in South Africa experiencing a downgrade. “When acute water scarcity hits, people have a choice. They either have to live with it or they can migrate,” said University of Free State Centre for Environmental Management Professor Anthony Turton. Turton, a trained scientist specialising in water resource management, pointed to global studies of water scarcity, ultimately resulting in “a study of migration”. “It becomes a push factor in human migration. Environmental scarcity ultimately results in resource capture. “I am speaking to people who own residential complexes in Cape Town. And I am speaking to one person that owns 10 such complexes. One has 300 units. And they are already talking about people breaking their leases and leaving. They are saying they are not willing to go through it. It’s not a far-fetched concept.” Economist Mike Schussler said there is also the potential for big firms moving from Cape Town to other parts in South Africa, including the economic hub of Johannesburg. “We saw with the electricity crisis that South Africa missed out on a lot of growth. A water crisis to me is a few times worse. There’s no rolling blackouts with water. It’s permanent,” Schussler said. “If the crisis is over relatively quickly, I don’t think it would be a…

Cape Town’s impending Day Zero is likely to have a severe knock-on effect across the entire national economy, widely affecting a number of sectors, and resulting in a possible credit rating downgrade for South Africa. Speaking to the Citizen on Tuesday, economist Mike Schussler said that the water crisis is several times worse than load shedding, as not having access to water is relatively permanent compared to rolling blackouts. This could lead to a number of businesses and industries looking at semigrating so that they can continue business operations in the country, he said. Depending on how long the drought lasts, he believes that major industries such as IT, transport, agriculture as well as exports will all be significantly impacted as water scarcity limits businesses and causes Capetonians to look for greener pastures. “We saw with the electricity crisis that…