Government notes S&P’s decision to affirm South Africa’s long-term foreign and local currency debt
ratings at ‘BB-’ and ‘BB’, respectively, and maintaining the stable outlook.

According to S&P, the stable outlook balances South Africa’s credit strengths – particularly a credible
central bank, a flexible exchange rate, an actively traded currency, and deep capital markets –
against infrastructure-related pressures on growth, and downside risks to the fiscal and debt position.

The agency also acknowledges that private-sector investment in power generation and renewables
is picking up and will support the strengthening of real GDP growth over the medium term.

Over the next three years, government will focus on raising GDP growth by improving the provision
of electricity and logistics, enhancing the delivery of infrastructure and restructuring the state to be
efficient and fit-for-purpose. Fiscal policy continues to support this approach by stabilising debt and
debt-service costs. Additionally, fiscal consolidation will be implemented through spending
reductions, efficiency measures across government and moderate tax revenue measures.

Issued by National Treasury
Date: 17 November 2023

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