JOHANNESBURG – Fitch Ratings raised South Africa’s credit rating on Friday, citing stronger fiscal discipline and lower-than-expected debt, marking its first upgrade of the country in more than two decades.

The agency lifted the rating one notch to ‘BB’ from ‘BB-‘, keeping it below investment grade.

“The upgrade primarily reflects South Africa’s record of prudent fiscal management and progress on fiscal consolidation, despite weak economic growth and domestic and external shocks,” the ratings agency said.

Africa’s largest economy has posted primary fiscal surpluses averaging about one percent of the gross domestic product (GDP) over the past four years, it said.

Debt was also expected to stabilise over the next two years at around 80 percent of GDP, it added.

The government welcomed the move, saying it was the first upgrade from the New York-based agency in almost 21 years.

“Improved sovereign credit ratings help to lower borrowing costs for government, businesses and households and have tangible benefits for ordinary people,” treasury director-general Duncan Pieterse said in a statement.

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In November 2025, South Africa secured its first major credit upgrade in over 16 years after S&P Global lifted the country’s sovereign assessment to “BB” from “BB-“.

Last month, Moody’s revised its outlook on its credit rating for South Africa to positive from stable.

“South Africa still has some way to go to regain its investment grade credit rating but for the first time in more than a decade we are seeing a clear turnaround in the downward ratings trend,” Pieterse said.

The country’s inflation stood at four percent in April on higher fuel prices triggered by the US-Israel war against Iran, whilst unemployment remains above 32 percent.