An increase to investment grade should not only make it cheaper for government to borrow money but also enable better terms for companies and consumers when they borrow.
South Africa could regain its investment-grade credit rating by 2028, according to Investec, which would mark a significant turnaround after more than a decade of being rated below investment grade.
Investec’s South African Asset Allocation Committee says there is a reasonable chance of the country returning to investment-grade status in 2028, moving out of the junk rating that characterises South Africa as less likely to repay debt and, as a result, causes higher charges when the country borrows.
S&P Global Ratings upgraded South Africa last November, the first such change in two decades. Moody’s affirmed its rating in May 2026 but moved its outlook to positive, and Fitch upgraded the country a notch in June.
“The positive outlook reflects South Africa’s gradually strengthening fiscal performance and sustained commitment to structural reforms, with prospects of increasingly tangible results,” said Moody’s at the time.
