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South Africa's Credit Rating Upgraded After 20 Years

11/17/2025

Summary

Story summary

S&P Global Ratings upgraded South Africa's foreign currency sovereign credit rating to BB from BB-, the first upgrade in nearly 20 years.
The upgrade reflects improved growth prospects and fiscal management, including Eskom's restructuring.
The National Treasury welcomed the upgrade, signaling a shift in finances.
S&P projects GDP growth of 1.1% in 2025 and 1.5% on average from 2026 to 2028, noting high unemployment and the need for structural reforms.

History

Historical Context

In 2004, South Africa launched the Growth, Employment and Redistribution (GEAR) strategy to stabilize its economy, achieving a GDP growth rate of 4.5% by 2006. This initiative, alongside recent restructuring efforts at Eskom, has led to an S&P Global Ratings upgrade to BB. Continued reforms are essential to combat high unemployment and meet projected growth rates of 1.1% in 2025 and 1.5% from 2026 to 2028.

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Story summary

S&P Global Ratings upgraded South Africa's foreign currency sovereign credit rating to BB from BB-, the first upgrade in nearly 20 years.
The upgrade reflects improved growth prospects and fiscal management, including Eskom's restructuring.
The National Treasury welcomed the upgrade, signaling a shift in finances.
S&P projects GDP growth of 1.1% in 2025 and 1.5% on average from 2026 to 2028, noting high unemployment and the need for structural reforms.

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