South Africa’s finance minister said Wednesday the nation’s debt is stabilising for the first time in nearly two decades.
The government will spend 2.67 trillion rand in 2026/27, targeting economic recovery and tackling crime with army deployments in hotspots.
“For the first time in 17 years, debt will stabilise and continue to fall in the coming years,” Minister Godongwana said.
Debt, which once peaked near 80 percent of GDP, is forecast to ease to 77.3 percent next year and 76.5 percent thereafter.
South Africa secured its first major credit upgrade in over 16 years after S&P Global lifted its sovereign rating in November.
The country was also removed from the global money-laundering watchdog’s grey list, reflecting progress in financial oversight and regulatory reform.
“These are signals of restored credibility, renewed resilience, and a nation regaining its footing,” Godongwana said, projecting 1.6 percent growth in 2026.
Fiscal pressures easing, the government will increase spending on peace and security, with 291.2 billion rand earmarked for 2028 to counter crime.
Army units will join police in violent areas, part of President Ramaphosa’s latest measures against one of the world’s highest murder rates.
Authorities hope the combined financial discipline and security push will stabilise the economy while restoring public confidence across the nation.
