Bond.az - S&P Global Ratings affirmed South Africa's long-term foreign currency rating at 'BB' and local currency rating at 'BB+', maintaining a positive outlook.
The ratings reflect the country's improving fiscal trajectory and a third consecutive year of primary fiscal surplus. General government revenue reached ZAR 1.98 trillion in fiscal 2025, exceeding budget targets.
S&P forecasts real GDP growth of 1.2% in 2026, down from 1.4%, before rising to an average of 1.7% over 2027-2029. Higher inflation and interest rates due to energy price shocks may dampen growth.
The government has accelerated reforms under the Government of National Unity. The second phase of 'Operation Vulindlela' focuses on electricity, transport, and housing. Eskom posted its first profit in eight years in 2025.
S&P views gross government debt as peaking at 79% of GDP in fiscal 2025 and falling to 78% by fiscal 2029. Foreign-currency debt remains below 15% of total debt.
