Delivering on a balanced fiscal strategy
In a constrained fiscal environment, credibility must be earned through action
25 May 2025 - 00:00
When South Africa lost its investment grade credit rating in 2020, it marked an important turning point in the country’s fiscal trajectory. The downgrade to junk status signalled to potential investors that the government might face challenges in meeting its debt obligations. Investors in South Africa’s bonds, in turn, demanded a higher interest rate to compensate for the increased risk. Foreign investors who at that time held 37% of the country’s rand-denominated bonds started selling their holdings — reducing their share to current levels of 25%...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
There’s never been a more important time to support independent media.
From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.
For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.
Already subscribed? Sign in below.
Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.