National Treasury has noted Moody’s decision to affirm the country’s long-term foreign and local currency debt ratings at Ba2 – otherwise known as non-investment grade or junk status – and maintain a stable outlook.

According to Moody’s, while the ratings affirmation reflects South Africa's credit strengths from effective, core institutions such as the judiciary and the central bank, a robust, deep financial sector and a solid external position, it also acknowledges chronic challenges posed by the country's inequalities, which hamper reform progress and fuel social risk, as well as persistent structural constraints on economic growth, and a relatively high and costly debt.

National Treasury said on December 4 that it welcomes Moody’s acknowledgment that the Government of National Unity will pursue structural reforms and ease growth bottlenecks.

It said government was pursuing policies to achieve rapid, inclusive and sustainable economic growth, claiming that economic reforms were beginning to bear fruit.

Specifically, it noted that electricity availability had improved and that the logistics system was stabilising, while the cost of doing business was declining in some areas of the economy.

National Treasury also said government was transforming the way it prepared and delivered infrastructure projects.

“It is mobilising private sector resources that will augment public sector capability and provide new channels for financing,” the department said.

In the 2024 Medium Term Budget Policy Statement, it was stated that government’s growth strategy over the medium term would be anchored by maintaining macroeconomic stability, implementing structural reforms, building State capability, and supporting growth-enhancing public infrastructure investment.