Fitch Ratings has upgraded South Africa's long-term foreign and local currency credit ratings from BB- to BB, marking the first upgrade in nearly 21 years. This decision, announced recently, reflects the country's improved fiscal management, including sustained primary budget surpluses and disciplined spending. Fitch noted that South Africa's debt-to-GDP ratio is now significantly lower than expected when it was downgraded in 2020. The agency highlighted the shift from primary fiscal deficits to consistent surpluses, with an average surplus of about 1% of GDP over the last four years. The government welcomed the upgrade as a sign of growing confidence in its fiscal policies and reform agenda. Treasury director-general Duncan Pieterse emphasized that while South Africa has not regained its investment-grade status, the upgrade indicates a positive turnaround in the country's credit ratings trend, especially amid a challenging global environment. Fitch forecasts that South Africa's debt burden will stabilize around 80% of GDP in the coming years, supported by continued budget surpluses and fiscal discipline. The government remains committed to maintaining sound public finances and advancing structural reforms to boost economic growth.