South Africa stands a good chance of regaining its investment-grade credit rating within two years and next week’s mid-term budget could take another step toward that goal, according to Investec Wealth & Investment International.
The fund manager sees a more than 50% chance the country will restore its investment grade rating by 2028, propelled by economic reforms and fiscal discipline that have shifted sentiment after years of being shunned by investors.
“A sufficiently credible medium-term budget policy statement could support an initial move by Moody’s Ratings and S&P Global Ratings to one notch below investment grade” said investment strategist Osagyefo Mazwai.
“If that progress is reinforced in the 2027 budget and 2027 MTBPS, an investment-grade rating by 2028 becomes achievable.”
Both ratings companies already have South Africa’s credit assessment on a positive outlook.
Finance Minister Enoch Godongwana will deliver the mid-term budget update on October 21 and is expected to
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