South African SMEs poised for growth amid festive season and credit rating upgrades

AS DECEMBER ushers in the festive season, the landscape for small and medium enterprises (SMEs) in South Africa appears cautiously optimistic, thanks to positive developments in fiscal conditions and consumer spending.

- ASHLEY LECHMAN

Miguel da Silva, Group Executive of Business Banking at TymeBank, provides insights into the factors influencing this encouraging outlook for SMEs as they navigate the end of 2025.

The forthcoming review by Moody's on South Africa's credit rating, scheduled for 5 December, is a pivotal moment for the economy.

Currently rated Ba2, just shy of investment grade, Moody’s will consider the implications of recent credit upgrades performed by S&P Global Ratings, which marked a significant milestone for the country. In November, S&P upgraded South Africa’s foreign currency long-term sovereign rating from BBto BB and lifted the local currency rating from BB to BB+.

This was the first upgrade from a major agency in over 16 years, showcasing growing confidence in South Africa's fiscal trajectory.

The positive fiscal indicators highlighted in Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement, delivered on 12 November, have not gone unnoticed by credit rating agencies.