Pretoria: The government has expressed its approval following Moody’s decision to affirm South Africa’s long-term foreign and local currency debt ratings at ‘Ba2’, with a maintained stable outlook. This decision has been interpreted as a positive signal for the country’s economic standing.
According to South African Government News Agency, Moody’s ratings affirmation highlights South Africa’s credit strengths, which are underpinned by effective core institutions like the judiciary and the central bank, a robust financial sector, and a solid external position. However, the affirmation also brings attention to ongoing challenges, including the nation’s significant inequalities, persistent structural constraints that impact economic growth, and a relatively high and expensive debt burden.
The government has noted Moody’s recognition of the Government of National Unity’s commitment to pursue structural reforms and alleviate growth constraints. Efforts are being made to implement policies aimed at achieving rapi
d, inclusive, and sustainable economic growth. Recent economic reforms have shown promising results, with improvements in electricity availability, stabilization of the logistics system, and a reduction in the cost of doing business in certain areas.
Furthermore, the government is revamping its approach to infrastructure project preparation and delivery. By mobilizing private sector resources, it aims to enhance public sector capabilities and open new financing channels. As part of its growth strategy outlined in the 2024 Medium Term Budget Policy Statement, the government is focusing on maintaining macroeconomic stability, implementing structural reforms, building state capability, and supporting growth-enhancing public infrastructure investment.