Chamwe Kaira
S&P Global Ratings has upgraded South Africa’s long-term sovereign ratings, raising the country from ‘BB-’ to ‘BB’ for foreign currency and from ‘BB’ to ‘BB+’ for local currency.
The outlook is positive, the South African National Treasury said.
South Africa is one of Namibia’s biggest trading partners. In September, it was Namibia’s largest export destination with a share of 17.8%. Botswana followed with 14%. Zambia, China, and the UAE were also among Namibia’s top five export markets. South Africa remained Namibia’s main source of imports, accounting for 33.3% of all goods entering the country.
China held 10.8%, while Oman, Morocco and Bahrain were also key suppliers.
According to S&P, the upgrade reflects South Africa’s improving growth path and fiscal position. It also reflects reduced risks linked to Eskom as reforms begin to improve the utility’s performance.
“The government is on track to post its third annual primary surplus in 2025/26, while contingent liabilities are likely to ease as Eskom is being reformed,” the national treasury said.
General government revenue is expected to come in above budget for 2025/26. Strong VAT and corporate income tax receipts have boosted collections.
Higher-than-expected tax buoyancy has also played a role, even though GDP growth forecasts were revised down.
The upgrade is South Africa’s first from a major credit ratings agency in more than 16 years.
It is also one of only three countries worldwide to receive an S&P upgrade in 2025 while keeping a positive outlook.
“Government is improving the health of the public finances and accelerating infrastructure investments. Over the medium term this will strengthen growth prospects, reduce borrowing costs, improve confidence and foster faster job creation. The 2025 Medium Term Budget Policy Statement underscores the government’s commitment to fiscal sustainability, even in a low-growth environment,” the National Treasury said.
It said fiscal policy continues to support macroeconomic stability by stabilising debt this year, growing the primary balance in the coming years and narrowing the budget deficit over the Medium-Term Expenditure Framework period.
JSE Group chief executive officer Leila Fourie said long-term growth depends on stable policy and continued reforms.
“Raising South Africa’s growth trajectory depends on continuing to strengthen macroeconomic stability, accelerating structural reforms, building a capable state and improving public-sector infrastructure investment. Credible policy, disciplined execution, and ongoing collaboration between government, business, and institutions are rebuilding the foundations of stability and long-term growth. When reforms take root, credibility strengthens, investment follows, and momentum begins to compound.”
This week’s Medium-Term Budget Policy Statement highlighted the shift in South Africa’s economic position. Debt is projected to stabilise at 77.9% of GDP.
Growth is expected to move toward 2% by 2028. Primary surpluses are forecast to rise from N$68.5 billion this year to more than N$220 billion by 2028/29, reversing earlier fears that debt would push toward 100% of GDP.
