South Africa’s finance minister, Enoch Godongwana, announced on Wednesday that the country’s debt burden is stabilising for the first time in nearly two decades, reflecting cautious economic recovery.
The government plans to spend 2.67 trillion rand ($168 billion) in the 2026/27 financial year, including a targeted push to tackle crime after President Cyril Ramaphosa deployed the army to high-risk areas.
“For the first time in 17 years, debt will stabilise and it will continue to fall in the coming years,” Godongwana told parliament. South Africa’s debt, which hit nearly 80% of GDP, is projected to ease to 77.3% in 2026/27 and decline further to 76.5% the following year.
Credit Rating Boost
In November 2025, South Africa secured its first major credit upgrade in over 16 years, with S&P Global improving the country’s sovereign assessment. Godongwana described this as a signal of “restored credibility” and projected economic growth of 1.6% in 2026.
Increased Security Spending
The minister announced that spending on peace and security will rise to 291.2 billion rand ($18 billion) by 2028, part of a broader effort to deploy army units alongside police in crime hotspots. This is the latest measure by the government to address rising insecurity across the nation.
SOURCE: TRT AFRICA
