Days before the G20 Leaders Summit, S&P Global lifted South Africa’s credit rating for the first time in two decades — bringing long-awaited reprieve to a country that’s highlighted Africa’s high cost of capital throughout its G20 presidency this year.
South Africa’s credit rating — a key signal of how risky it is to lend to the country, and therefore how expensive its borrowing will be — was upgraded from a BB- to a BB. S&P Global cited improved tax systems, expenditure constraints, gross domestic product growth, and reform across the country’s electricity, transportation, and water systems as reasons behind the change.
“While South Africa remains below investment grade, the upgrade is significant,” said Ronald Lamola, South Africa’s minister of international relations and cooperation, at a G20 press briefing. “It lowers borrowing cost, broadens the investor base, and signals renewed confidence in the country's reform trajectory.”
About the author
Elissa Miolene
Elissa Miolene reports on USAID and the U.S. government at Devex. She previously covered education at The San Jose Mercury News, and has written for outlets like The Wall Street Journal, San Francisco Chronicle, Washingtonian magazine, among others. Before shifting to journalism, Elissa led communications for humanitarian agencies in the United States, East Africa, and South Asia.
