Finance Minister Enoch Godongwana. According to EY, the Fitch Ratings upgrade reflects growing international confidence in South Africa’s efforts to improve fiscal sustainability and implement structural reforms, particularly in the energy and logistics sectors.
South Africa’s recent sovereign credit rating upgrade by Fitch Ratings is a significant endorsement of the country’s fiscal discipline and reform agenda.
However, businesses should not expect an immediate economic turnaround as higher borrowing costs and weak domestic demand continue to weigh on growth, according to EY’s June 2026 Macroeconomic Outlook.
Fitch upgraded South Africa’s long-term foreign and local currency credit ratings to BB from BB- on earlier this month, marking the agency’s first upgrade of the country in almost 21 years.
The move follows positive ratings actions from other major agencies, including an upgrade by S&P Global Ratings in late 2025 and a positive outlook from Moody’s Ratings.
