{"id":265665,"date":"2025-11-17T14:05:21","date_gmt":"2025-11-17T15:05:21","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=265665"},"modified":"2025-11-17T19:04:07","modified_gmt":"2025-11-17T19:04:07","slug":"business-economists-cheer-sp-upgrade-as-momentum-builds-for-south-africas-recovery","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/business-economists-cheer-sp-upgrade-as-momentum-builds-for-south-africas-recovery\/","title":{"rendered":"Business, economists cheer S&P upgrade as momentum builds for South Africa\u2019s recovery"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

South Africa\u2019s business community and leading economists have welcomed S&P Global Ratings\u2019 upgrade of the country\u2019s long-term foreign and local currency credit ratings \u2014 the first upward revision in nearly 20 years.<\/p>\n

S&P lifted South Africa\u2019s foreign currency rating from BB\u2013 to BB, while the local currency rating improved from BB to BB+, reflecting stronger fiscal performance, a more stable economic environment, and improving investor sentiment.<\/p>\n

North-West University Business School economist, Professor Raymond Parsons, said the upgrade, though widely anticipated, marks an important vote of confidence in the economy.<\/p>\n

\u201cIt recognises the extent to which certain recent positive economic developments have improved SA\u2019s fiscal position and growth outlook, and which have strengthened investment sentiment,\u201d Parsons said. <\/span><\/p>\n

\u201cThe S&P decision has now opened the way for SA to eventually extricate itself from its current junk status, but there remains a long way to go.\u201d<\/span><\/p>\n

Parsons added that to regain full global investment status still requires that SA\u2019s economic steersmanship stays firmly on track over the next few years.<\/span><\/p>\n

Unisa economist Dr Eliphas Ndou said the sovereign upgrade will reduce South Africa\u2019s risk premium and, by extension, the cost of servicing government debt.<\/span><\/p>\n

\u201cIn addition, this upgrade should uplift domestic business confidence and improve investor sentiment, which are needed for raising economic growth,\u201d Ndou said.<\/span><\/p>\n

The Johannesburg Stock Exchange (JSE) <\/span>also welcomed the upgrade, saying it confirms that South Africa\u2019s economic trajectory has begun to turn.<\/p>\n

JSE Group CEO Leila Fourie said credible policy, disciplined execution, and collaboration between government, business and institutions are helping to rebuild the foundations for long-term growth.<\/p>\n

\u201cWhen reforms take root, credibility strengthens, investment follows, and momentum begins to compound,\u201d she said.<\/p>\n

Fourie noted that the upgrade reflects the cumulative effect of institutional improvements, including stronger financial integrity following South Africa\u2019s exit from the FATF grey list, improved revenue collection, and reforms driven through partnerships between the National Treasury and financial sector leaders.<\/p>\n

“As we prepare to host the G20 and B20 meetings, the upgrade sends a positive signal of progress and the potential for further upgrades as the country drives towards building fiscal credibility, growth and executing fiscal reform,” she said.<\/span><\/p>\n

“It indicates that the reform path is credible, that institutions are strengthening and that the macroeconomic framework is sound. It supports South Africa\u2019s position at a moment when the world has its eyes focused on South Africa.” <\/span><\/p>\n

The Business Unity South Africa (Busa) said the decision affirms progress in restoring fiscal stability, strengthening institutions, and steering the economy onto a more inclusive growth path.<\/p>\n

Busa CEO Khulekani Mathe said the upgrade represents a turning point in South Africa\u2019s economic recovery. <\/span><\/p>\n

\u201cIt reflects the combined effort of government, business, and civil society to rebuild credibility and restore confidence. What matters now is translating this progress into real outcomes such as investment, job creation, and broader economic opportunity.\u201d<\/span><\/p>\n

S&P cited improvements at key State-owned enterprises, including Eskom, and stronger revenue collection as contributing factors. <\/span><\/p>\n

\u201cThese developments suggest a more credible fiscal trajectory, which is critical to investor confidence,\u201d Mathe said.<\/span><\/p>\n

Professor Waldo Krugell, an economist at North-West University, said the local currency rating is now just one notch below investment grade, a significant milestone given that most government debt is rand-denominated.<\/span><\/p>\n

\u201cIt’s still a form of junk status, but we’re getting closer to investment grade. And that matters because most of our government debt is in local currency, in the local capital market. So it’s a massive step in the right direction,\u201d Krugell said.<\/span><\/p>\n

He added that if these improvements can keep going, that will lower the interest rate on government debt, which will lower the interest repayments, the cost of making new debt. <\/span><\/p>\n

\u201cIt’s not on the debt that’s already issued. It’s on new debt. But that could then be made at much lower interest rates and much lower interest rate repayment costs, which then just frees up money in the budget to spend on other stuff. It’s a really, really positive step. And we hope the other ratings agencies follow the lead here.\u201d<\/span><\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

South Africa\u2019s business community and leading economists have welcomed S&P Global Ratings\u2019 upgrade of the country\u2019s long-term foreign and local currency credit ratings \u2014 the first upward revision in nearly 20 years.S&P lifted South Africa\u2019s foreign currency rating from BB\u2013 to BB, while the local currency rating improved from BB to BB+, reflecting stronger fiscal performance, a more stable economic environment, and improving investor sentiment.North-West University Business School economist, Professor Raymond Parsons, said the upgrade, though widely anticipated, marks an important vote of confidence in the economy.\u201cIt recognises the extent to which certain recent positive economic developments have improved SA\u2019s fiscal position and growth outlook, and which have strengthened investment sentiment,\u201d Parsons said. \u201cThe S&P decision has now opened the way for SA to eventually extricate itself from its current junk status, but there remains a long way to go.\u201dParsons added that to regain full global investment status still requires that SA\u2019s economic steersmanship stays firmly on track over the next few years.Unisa economist Dr Eliphas Ndou said the sovereign upgrade will reduce South Africa\u2019s risk premium and, by extension, the cost of servicing government debt.\u201cIn addition, this upgrade should uplift domestic business confidence and improve investor sentiment, which are needed for raising economic growth,\u201d Ndou said.The Johannesburg Stock Exchange (JSE) also welcomed the upgrade, saying it confirms that South Africa\u2019s economic trajectory has begun to turn.JSE Group CEO Leila Fourie said credible policy, disciplined execution, and collaboration between government, business and institutions are helping to rebuild the foundations for long-term growth.\u201cWhen reforms take root, credibility strengthens, investment follows, and momentum begins to compound,\u201d she said.Fourie noted that the upgrade reflects the cumulative effect of institutional improvements, including stronger financial integrity following South Africa\u2019s exit from the FATF grey list, improved revenue collection, and reforms driven through partnerships between the National Treasury and financial sector leaders.”As we prepare to host the G20 and B20 meetings, the upgrade sends a positive signal of progress and the potential for further upgrades as the country drives towards building fiscal credibility, growth and executing fiscal reform,” she said.”It indicates that the reform path is credible, that institutions are strengthening and that the macroeconomic framework is sound. It supports South Africa\u2019s position at a moment when the world has its eyes focused on South Africa.”\u00a0The Business Unity South Africa (Busa) said the decision affirms progress in restoring fiscal stability, strengthening institutions, and steering the economy onto a more inclusive growth path.Busa CEO Khulekani Mathe said the upgrade represents a turning point in South Africa\u2019s economic recovery. \u201cIt reflects the combined effort of government, business, and civil society to rebuild credibility and restore confidence. What matters now is translating this progress into real outcomes such as investment, job creation, and broader economic opportunity.\u201dS&P cited improvements at key State-owned enterprises, including Eskom, and stronger revenue collection as contributing factors. \u201cThese developments suggest a more credible fiscal trajectory, which is critical to investor confidence,\u201d Mathe said.Professor Waldo Krugell, an economist at North-West University, said the local currency rating is now just one notch below investment grade, a significant milestone given that most government debt is rand-denominated.\u201cIt’s still a form of junk status, but we’re getting closer to investment grade. And that matters because most of our government debt is in local currency, in the local capital market. So it’s a massive step in the right direction,\u201d Krugell said.He added that if these improvements can keep going, that will lower the interest rate on government debt, which will lower the interest repayments, the cost of making new debt. \u201cIt’s not on the debt that’s already issued. It’s on new debt. But that could then be made at much lower interest rates and much lower interest rate repayment costs, which then just frees up money in the budget to spend on other stuff. It’s a really, really positive step. And we hope the other ratings agencies follow the lead here.\u201dBUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":265667,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-265665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=265665"}],"version-history":[{"count":2,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265665\/revisions"}],"predecessor-version":[{"id":265668,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265665\/revisions\/265668"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/265667"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=265665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=265665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=265665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}