Overview
- South Africa secured its first S&P sovereign upgrade since 2005, moving the foreign‑currency rating to BB and the local‑currency rating to BB+ with a positive outlook.
- S&P cited improved revenue collection, efforts to slow debt growth, and progress at state firms such as Eskom, alongside South Africa’s new 3% inflation target.
- Nigeria’s outlook was raised to positive from stable, with S&P pointing to President Bola Tinubu’s fiscal and monetary overhaul as likely to deliver medium‑term benefits.
- Tinubu’s removal of the fuel subsidy and the unification of exchange rates have boosted foreign capital inflows, though the subsidy step triggered large protests.
- S&P said the improved assessments should reduce borrowing costs and draw investment, a shift with regional weight as Nigeria and South Africa comprise roughly 40% of sub‑Saharan Africa’s GDP.