South Africa targets return to investment-grade rating in 2028
By the AFREEQUE newsroom, based on Daily Maverick
South African Finance Minister Enoch Godongwana believes the country could regain investment-grade status by 2028, following several rating upgrades and a fall in debt. Markets have welcomed the medium-term fiscal policy, according to an interview with the Daily Maverick.
South Africa could regain an investment-grade sovereign rating by 2028, Finance Minister Enoch Godongwana said in an interview with the Daily Maverick on Thursday. “It is within our reach and I think we will have achieved this goal by 2028,” he said, expressing hope for further rating upgrades before then.
The three major credit rating agencies currently place South Africa two notches below investment grade. Since the presentation of the 2025 medium-term budget framework, S&P Global and Fitch have each raised the country’s rating by one notch, while Moody’s has changed its outlook from stable to positive. The yield on South Africa’s 10-year government bond has also fallen by 20 basis points to 8.72%, compared with about 9.30% for Mexico, which is already investment grade, according to the Daily Maverick.
Godongwana attributed the improvement to higher tax revenues and lower debt. However, he said he was not sure he would still be minister in 2028, given his age and the president’s future decision. His comments came after the presentation of South Africa’s medium-term budget framework on 18 October.
