Moody’s upgrades SA’s economic outlook to positive

A general view of densely packed residential housing in Alexandra township in the foreground and the Sandton central business district, Johannesburg’s financial district widely referred to as the “richest square mile in Africa” in the background, in Johannesburg, South Africa, May 21, 2026.

Rating agency Moody’s has upgraded South Africa’s economic outlook from stable to positive. However, it has maintained the country’s overall credit rating at a sub-investment grade of B-A-2, which is two notches below investment grade.

In a statement released on Friday night, Moody’s has noted that the positive outlook reflects gradually strengthening fiscal performance and a sustained commitment to structural reforms.

The agency expects improving debt-service costs to stabilise the general government debt burden soon.

Moody’s warned that the country’s sub-investment grade rating still reflects low growth potential, largely constrained by a weak labour market and fragile state of network infrastructure.

However, it has forecast real GDP growth to hit two per cent by 2028, underpinned by stronger investment and ongoing reforms.

The government has welcomed Moody’s decision. National Treasury says this upgrade makes South Africa the only G20 nation currently sitting on a positive outlook from the rating agency.

Rating agency Moody’s has upgraded South Africa’s economic outlook from stable to positive. However, it has maintained the country’s overall credit rating at a sub-investment grade of B-A-2, which is two notches below investment grade#MorningLive #SABCNews

— SABCNews_MorningLive (@MorningLiveSABC) May 23, 2026