South African banks poised for growth amid rising precious metals prices

SOUTH African banks are expected to expand lending to the broader economy over the next two years, supported by strong export earnings driven by elevated precious metals prices, according to S&P Ratings.

- TAWANDA KAROMBO

The ratings agency said on Monday that economic growth is likely to average 1.5% in both 2026 and 2027, up from a subdued 0.6% recorded in 2024, despite ongoing logistical constraints and tariff-related bottlenecks.

Last week, the ratings agency told Business Report that it was exploring raising SA's rating within a year should fiscal imbalances improve.

On Monday, Charlotte Masvongo, an analyst with S&P, said economic growth was likely to average 1.5% in 2026 and 2027, rising from a subdued 0.6% in 2024.

"We expect GDP growth will average 1.5% over 2026-2027, from a subdued 0.6% in 2024," said Masvongo.