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South Africa Secures First Credit Upgrade in 20 Years
15 Nov
Summary
- S&P upgrades South Africa's credit rating to BB
- Reforms and growing fiscal revenue drive the upgrade
- Eskom returns to profit after 8 years of losses
On November 15, 2025, South Africa celebrated a significant milestone as it secured its first credit upgrade in two decades. S&P Global Ratings lifted the country's sovereign ratings by one notch to BB, two notches below investment grade, on the back of reforms and growing fiscal revenue.
The upgrade reflects the positive strides made under President Cyril Ramaphosa's government. Just a few years ago, South Africa was grappling with constant power blackouts and a crisis within the ruling African National Congress party. However, the country has since embarked on structural reforms and the advent of coalition government, signaling a turnaround in its economic fortunes.
The improvement in South Africa's fiscal metrics and the stabilization of government debt have been key drivers of the upgrade. Additionally, the state power company, Eskom, has returned to profitability after eight years of losses and reliance on government bailouts. These developments have raised hopes of further upgrades by other rating agencies and the eventual restoration of South Africa's investment-grade status.
Despite the positive developments, challenges such as high levels of crime and corruption in both the private and government sectors remain a concern. However, the country's removal from the Financial Action Task Force's grey list and the survival of the government of national unity have bolstered investor confidence.
