Finance Minister Enoch Godongwana. The National Treasury welcomed the decision by Moody's, describing it as evidence that government’s fiscal consolidation strategy is beginning to deliver tangible results.
Ratings agency Moody's has upgraded South Africa’s sovereign credit outlook to positive from stable, citing improving fiscal discipline, structural reforms and stronger investor confidence, in a move welcomed by government as a major vote of confidence in the country’s economic direction.
In a ratings action released on Friday, Moody’s affirmed South Africa’s long-term foreign and local currency ratings at Ba2 but revised the outlook upward, signalling the possibility of a future ratings upgrade if reforms and fiscal improvements continue.
The positive outlook marks Moody’s first upward outlook revision for South Africa since 2007. Treasury noted that the development follows a one-notch sovereign ratings upgrade by S&P Global in November 2025, which also retained a positive outlook on the country.
The agency said South Africa’s fiscal position was gradually strengthening, supported by rising primary budget surpluses, moderating debt-service costs and sustained reform efforts aimed at improving energy, logistics and infrastructure performance. It expects real GDP growth to rise gradually to around 2% by 2028, underpinned by higher investment and reform momentum.
