Africa: Fitch Affirms South Africa's BB - Rating, Maintains Stable Outlook

14 September 2025
SAnews.gov.za (Tshwane)

Government has welcomed Fitch's decision to affirm South Africa's long-term foreign and local currency debt ratings at "BB-" and maintain the stable outlook.

According to Fitch, South Africa's credit rating is constrained by several factors, including low real gross domestic product (GDP) growth, high poverty and inequality levels, a high and rising government debt-to-GDP ratio, and a rigid fiscal structure that hampers budget deficit reduction.

"However, 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 National Treasury statement read.

Fitch also noted that the Government of National Unity (GNU) continues, under Operation Vulindlela Phase 2, to implement a reform agenda.

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Operation Vulindlela Phase 2 is a joint initiative between the Presidency and National Treasury to accelerate the implementation of structural reforms to enable economic growth and job creation.

Phase II of Operation Vulindlela will implement reforms in three new areas, including in digital transformation.

According to the Treasury, reforms focused on improving network infrastructures, such as electricity, logistics, water, and digitalisation, have alleviated load shedding and halted the decline in freight volume transported, contributing to Fitch's forecast of a modest increase in real GDP growth.

"Government's economic growth strategy will continue to focus on maintaining macroeconomic stability to reduce living costs and grow investment, executing reforms to promote a more dynamic economy, building state capability in core functions and supporting growth-enhancing public infrastructure investment," said the Treasury on Friday.

Over the medium term, Treasury said government will invest over R1 trillion in infrastructure, and reforms will make it easier for the state and the private sector to invest in roads, rail, energy and water.

In addition, major reforms to state spending and the budget process are underway, including the implementation of targeted and responsible savings across government.

Treasury announced that further details will be provided in the Medium-Term Budget Policy Statement on 12 November 2025.

Read the original article on SAnews.gov.za.

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