South Africa's sovereign rating affirmed by S&P Global with positive outlook

S&P Global Ratings confirmed South Africa's long‑term sovereign credit rating at BB in foreign currency and BB+ in local currency, maintaining a positive outlook. The agency projects real GDP growth of 1.2% in 2026, accelerating to an average of 1.7% over 2027‑2029, supported by reforms in the electricity sector and other areas.

For the 2025 fiscal year ending 31 March 2026, South Africa’s tax revenue exceeded budget targets, delivering a third consecutive primary fiscal surplus. S&P noted that improved tax collection and constrained spending should keep fiscal consolidation on track through 2029, reducing the general‑government debt‑to‑GDP ratio. The positive outlook also reflects expectations that the coalition government will sustain fiscal discipline and that Middle‑East energy‑price shocks will ease.