South Africa grew for six consecutive quarters, then contracted by 0.2% in the second quarter of 2026. The disruption at the Strait of Hormuz is the convenient explanation. It is not, however, a sufficient one. Manufacturing was already shrinking, fixed investment was already falling and construction was already under strain. Higher fuel prices found a…
read moreSouth Africa received some welcome news after the credit ratings agency S&P decided to upgrade both SA’s foreign currency long-term sovereign credit rating to ‘BB’ from ‘BB- ‘and local currency long-term sovereign credit rating to ‘BB+’ from ‘BB’. Its outlook remains positive. Another agency, Fitch affirmed South Africa’s sovereign rating at BB- with a stable…
read moreIntroduction On 21 May, Finance Minister Enoch Godongwana tabled an updated Budget that seeks to strike a delicate balance between economic growth and social stability. Positioned as a pragmatic response to South Africa’s intersecting crises – rising debt, stagnant growth, and widening inequality – Budget 3.0 offers targeted spending shifts rather than sweeping reforms. It…
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