Close Menu
    What's Hot

    Ghana’s Liquify – Accelerating Trade Finance for Africa’s SME Exporters

    June 20, 2025

    Winich Farms Secures Investment from DisrupTech to Scale Agri-Fintech Operations

    June 18, 2025

    Ibukun Awosika to Hold African Marketplace Dubai

    June 16, 2025
    Gulf Africa ReviewGulf Africa Review
    • Industry
    • Infrastructure
      1. Airport
      2. Hospitality
      3. Ports
      4. Power
      5. Rail
      6. Roads
      7. Transport
      Featured

      Osun seeks to capitalise on infrastructure momentum

      Infrastructure May 21, 2018
      Recent

      Salpha Energy Secures $1.3M to Expand Nigeria’s Solar Manufacturing Capacity

      June 6, 2025

      South Africa – Infrastructure Overhaul Set to Boost Transport and Trade

      May 16, 2025

      Navigating Challenges in the African Air Cargo Industry

      March 5, 2025
    • Business & Trade
      1. Agri-Business
      2. Entrepreneurship
      3. FDI
      4. Legislative
      5. MEA
      6. Telecoms
      7. Properties
      Featured

      Analysts predict bullish future for Nigeria’s REITs market

      Business Business & Trade January 21, 2018
      Recent

      Ghana’s Liquify – Accelerating Trade Finance for Africa’s SME Exporters

      June 20, 2025

      Ibukun Awosika to Hold African Marketplace Dubai

      June 16, 2025

      Egypt’s Paysky Unveils “Pay by Bank” to Transform Digital Payments

      June 11, 2025
    • Finance
      1. Banking
      2. Islamic finance
      Featured

      DP World and Nedbank Elevate Trade Finance in Africa

      Finance Trade September 18, 2024
      Recent

      DP World and Nedbank Elevate Trade Finance in Africa

      September 18, 2024

      Arab Coordination Group commits $50 billion for Africa’s sustainable development

      November 13, 2023

      MENAT to see investment flows increase substantially

      September 4, 2023
    • Innovation
    Gulf Africa ReviewGulf Africa Review
    Business

    S&P Global Ratings affirms positive outlook for South Africa

    November 23, 20223 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    S&P
    S&P Global has affirmed South Africa's positive ratings.
    Share
    Facebook Twitter LinkedIn Pinterest Email

    S&P affirms South Africa’s ‘BB-/B’ long- and short-term foreign currency and ‘BB/B’ long- and short-term local currency sovereign credit ratings.

    S&P Global Ratings, the international credit rating agency, has affirmed its ‘BB-/B’ long- and short-term foreign currency and ‘BB/B’ long- and short-term local currency sovereign credit ratings on South Africa. The outlook remains positive, it stated.

    S&P highlights positive outlook

    “The positive outlook reflects our expectation that a net external creditor position, a path toward fiscal consolidation and the implementation of some structural reforms could lead to an easing of fiscal and economic pressures,” said S&P.

    On the upside, S&P said it could raise the ratings if growth in economic output and fiscal consolidation continue on a sustained basis, against a backdrop of structural and governance reforms and supportive external sector dynamics.

    Other potential scenarios

    The negative scenario is that the outlook could be revised to stable if external or domestic shocks subdue South Africa’s economic growth over the forecast period, or if fiscal financing or external pressures significantly increase. This could, for example, result from a sharper global economic downturn, particularly in China.

    S&P could also revise the outlook to stable if the expected debt transfer from Eskom (CCC+/Negative/–) to the sovereign balance sheet significantly weakens the sovereign’s fiscal trajectory without addressing operational and financial shortcomings at the public utilities company.

    “South Africa’s economic and fiscal reforms could improve its medium-term growth and debt trajectory, in our view. We also see as fundamental credit strengths the reasonably large net external asset position, flexible currency and deep domestic capital markets that should cushion against rising external financing risks. Higher-than-expected tax revenue, relative to our expectations six months ago, will help to reduce the fiscal deficit as a proportion of GDP,” explained S&P.

    However, downside risks could be exacerbated by the ongoing domestic electricity and infrastructure constraints, along with a sharper economic slowdown in China and the rest of the world. Fiscal risks emanating from ongoing wage negotiations, further extensions of the Social Relief of Distress (SRD) grant and materialization of contingent liabilities could also increase the government’s fiscal imbalances.

    Growth will slow

    S&P said that growth will slow but remain stronger than pre-pandemic levels. Following a rebound of 4.9% in 2021, it expects growth to reach 1.9% in 2022 and taper off to 1.7% on average over 2023-2025. Deep-rooted constraints, including record high electricity loadshedding and infrastructure bottlenecks could continue to limit medium-term economic growth.

    “We forecast real GDP growth of 1.5% in 2023, with risks weighted to the downside. We assume that a broadly similar level of energy shortages will continue in 2023, handicapping agriculture, mining, and manufacturing sectors. Weaker global growth and protracted inflationary pressures could also dampen exports and domestic demand, and moderate import growth. A deeper-than-expected recession in the US and Europe, and sharper slowdown in China, could worsen the funding environment and growth outlook for emerging markets including South Africa. In a potential downside scenario, we could see growth in the country slowing 0.6% in 2023 and 1.1% in 2024,” said S&P.

    In a statement, South Africa’s National Treasury said: “Government’s medium-term fiscal strategy prioritizes achieving fiscal sustainability by narrowing the budget deficit and stabilizing debt; increasing spending on policy priorities such as security and infrastructure, thereby promoting economic growth; and reducing fiscal and economic risks, including through targeted support to key public entities and building fiscal buffers for future shocks.”

    In September, Sovereign Africa Rating graded South Africa at ‘Investment Grade’.

    Credit ratings S&P South Africa
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleSouth Africa announces new legislation to combat money laundering, terrorism financing
    Next Article Flapmax Launches AI Builders Garage at FAI Summit

    Related Posts

    Agri-Business

    Winich Farms Secures Investment from DisrupTech to Scale Agri-Fintech Operations

    June 18, 2025
    Logistics

    Cargoplug Expands, Strengthening UK-Nigeria Logistics Corridors

    May 23, 2025
    Agri-Business

    FarmXic Deploys Soilless Farming Kits to Power Urban Agriculture in Nigeria

    May 19, 2025
    View 1 Comment

    1 Comment

    1. Pingback: Ramaphosa undertakes UK state visit

    Leave A Reply Cancel Reply

    LATEST STORIES

    Ghana’s Liquify – Accelerating Trade Finance for Africa’s SME Exporters

    June 20, 2025

    Winich Farms Secures Investment from DisrupTech to Scale Agri-Fintech Operations

    June 18, 2025

    Ibukun Awosika to Hold African Marketplace Dubai

    June 16, 2025

    China to Drop Tariffs on African Exports

    June 13, 2025

    Egypt’s Paysky Unveils “Pay by Bank” to Transform Digital Payments

    June 11, 2025
    • Business
      • Agri-Business
      • Entrepreneurship
      • FDI
      • Legislative
      • MEA
      • Properties
      • Telecoms
    • Infrastructure
      • Airport
      • Hospitality
      • Ports
      • Power
      • Rail
      • Roads
      • Transport
    • Finance
      • Banking
      • Islamic finance
    • Commodities
      • Agri commodities
      • Metals & minerals
      • Precious metals
    • Culture & Society
      • Education
      • Energy
    GAR logo
    © GulfAfricaReview.com 2014-2022, All Rights Reserved.

    Gulf Africa Review is a trade news and future networking platform for businesses leaders and trade organisations, established to first inform and secondly assist in facilitating the ongoing business and trade relations between the Gulf Cooperation Council countries and Sub-Saharan Africa. We aim to provide an apolitical voice for this channel of economic activity in a way that benefits both geographies by improving the availability of information about market events, developments and opportunities, while publicising the successes achieved by this ever-broadening regional relationship.

      Subscribe to our newsletter

      Type above and press Enter to search. Press Esc to cancel.