Credit rating agency Fitch has maintained South Africa’s credit rating at sub-investment grade of double B minus with a stable outlook.
According to Fitch, South Africa’s credit rating was constrained by low real GDP growth, high level of inequality and rising government debt-to-GDP ratio, among others.
Growth for the country is also said to be hampered by power shortages and the country’s struggling logistic sector.
The credit ratings agency estimates that load-shedding will reduce in intensity in 2024 and 2025 but will not disappear, with more capacity expected to come from private-sector investments.
The government says it notes Fitch’s decision and is implementing the necessary reforms to be at investment grade. This includes raising GDP growth by improving the provision of electricity and logistics and enhancing the delivery of infrastructure.
