The South African government has welcomed Fitch Ratings’ decision to affirm the country’s long-term foreign and local currency credit ratings at “BB-” with a stable outlook.
In its latest review, Fitch acknowledged persistent challenges, including low real GDP growth, high poverty and inequality, and a rising debt-to-GDP ratio.
“The ratings are supported by a favourable government debt structure with long maturities and mostly local-currency-denominated, strong institutions and a credible monetary policy framework,” the Ministry of Finance said.
It also attributed the rating to structural reforms and improved macroeconomic management.
The ministry highlighted the role of Operation Vulindlela Phase 2, a joint initiative with the Presidency aimed at accelerating reforms in infrastructure, logistics and digital transformation.
These efforts have helped ease load shedding and stabilise freight volumes, contributing to Fitch’s forecast of modest GDP growth.
Treasury reaffirmed its commitment to macroeconomic stability, public investment and fiscal discipline.
JN/APA