S&P Global Ratings reaffirmed South Africa’s sovereign ratings and maintained a positive outlook at the weekend, saying fiscal improvements and reform momentum outweighed rising global inflation risks.
S&P maintained South Africa’s long‑term foreign‑currency rating at BB and its local‑currency rating at BB+, reinforcing the upgrade it issued in November 2025 – the first by a major agency in more than 16 years.
The latest decision follows Moody’s move last week to shift South Africa’s outlook from stable to positive, signalling growing investor confidence in the government’s consolidation efforts.
National Treasury director general Duncan Pieterse said the positive outlooks from both S&P and Moody’s demonstrated that South Africa had the potential to accelerate economic growth and reduce public debt more rapidly.
“Two of the major rating agencies, S&P and Moody’s, now have South Africa on a positive outlook, which is an encouraging signal that we have the potential to lift our economic growth rate higher and reduce our public debt faster. We are determined to do so,” he said.
S&P said stronger‑than‑expected revenue in the 2025/26 fiscal year helped deliver a third consecutive primary surplus, while expenditure discipline supported its view that debt stabilisation is underway.
The rating agency expects general government debt, which it estimates peaked at 79 percent of GDP in 2025, to edge down to about 78 percent by 2029 as fiscal consolidation continues.
Economic growth is forecast at 1.2 percent in 2026, rising to an average of 1.7 percent between 2027 and 2029 as reforms in electricity, logistics and digital infrastructure begin to lift productivity.
S&P highlighted the turnaround at Eskom, which posted its first profit in eight years in 2025 and has delivered a full year without load shedding. It said progress at Transnet remains slower, with the utility still posting losses and relying on government guarantees.
JN/APA