Treasury says govt improving health of public finances as S&P gives SA the thumbs up

Nokukhanya Mntambo

Nokukhanya Mntambo

17 November 2025 | 10:10

Last week, South Africa was given its first rating upgrade by S&P in nearly two decades, putting it two notches below investment grade on the foreign currency rating. 

Treasury says govt improving health of public finances as S&P gives SA the thumbs up

This illustration picture taken in Toulouse on March 29, 2025, shows a screen displaying the logo of the rating agency Standard and Poor's. Picture: Lionel Bonaventure/AFP

National Treasury says government is improving the health of the public finances and accelerating infrastructure investments as global ratings agency S&P gives the country the thumbs up.
Last week, South Africa was given its first rating upgrade by S&P in nearly two decades, putting it two notches below investment grade on the foreign currency rating.
It also puts S&P in line with Moody’s for the first time in years.
Government has welcomed S&P's decision to upgrade South Africa’s foreign currency long-term sovereign credit rating to 'BB' from 'BB-'.
The outlook remains positive.
The ratings agency says the rating upgrade reflects South Africa’s improving growth and fiscal trajectory, alongside a reduction in contingent liabilities tied to performance improvements at the state-owned electricity utility, Eskom.
Government is also currently on track to post its third annual primary surplus in 2025/26.
Treasury says general government revenues are forecast to outperform budgeted numbers for 2025/26, despite the government having revised down its GDP growth forecasts.
"This is due to strong value[1]added tax (VAT) and corporate income tax receipts, which have exceeded estimates, alongside higher-than-expected tax buoyancy rates."
With what government says is improving the health of the public finances and accelerating infrastructure investments, Treasury over the medium term, this will strengthen growth prospects, reduce borrowing costs, improve confidence and foster faster job creation.
Treasury said raising the country's growth trajectory depends on continuing to strengthen macroeconomic stability, accelerating structural reforms, building a capable state and improving public-sector infrastructure investment.
South Africa is one of just three countries globally to secure an S&P upgrade in 2025, while continuing to maintain a positive outlook after the rating revision.
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