Fitch Ratings raises South Africa's sovereign credit rating

SOUTH Africa has received a major boost to its international credit profile after Fitch Ratings upgraded the country’s long-term foreign and local currency credit ratings from BB- to BB.

- SIPHELELE DLUDLA

The upgrade, announced on Friday, marks Fitch's first sovereign ratings upgrade for South Africa in nearly 21 years and signals growing confidence in the country’s fiscal position.

According to Fitch, the decision was driven by prudent management of public finances and sustained progress in strengthening South Africa’s fiscal outlook, despite weak economic growth and ongoing domestic and global challenges.

The agency noted that South Africa's debt-to-GDP ratio had tracked well below the levels it had anticipated when it downgraded the country to BB- in 2020. Other factors supporting the upgrade included sustained primary budget surpluses, stronger revenue collection, disciplined expenditure controls and ongoing reforms aimed at improving the performance of the energy and logistics sectors.

According to Fitch, South Africa had successfully shifted from primary fiscal deficits to consistent and widening primary surpluses in recent years. The agency also highlighted the country's debt structure as a positive, pointing to the long maturity profile of government debt and the relatively small share of borrowing denominated in foreign currency. The decision places South Africa among a limited number of countries worldwide to receive a Fitch upgrade during 2026.