Sub-Saharan Africa’s two biggest economies received favorable assessments from S&P Global Ratings, which praised government policies in both countries.
South Africa secured its first credit rating upgrade since 2005, moving up one level to BB, due to its improving growth and fiscal trajectory. S&P also revised its outlook on Nigeria to “positive” from “stable,” stating that the monetary, economic, and fiscal policy overhaul under Nigerian President Bola Tinubu would “yield positive benefits over the medium term.”
Both countries have pursued policy upheavals in recent years. South Africa, whose coalition government took office in 2024, last week cut its inflation target for the first time this century, to 3%. In Nigeria, a system of multiple exchange rates has been scrapped, along with a costly fuel subsidy, since Tinubu took office two years ago.
The improved assessment for the two countries looks set to cut the cost of borrowing, paving the way for more investment. Together, Nigeria and South Africa account for around 40% of sub-Saharan Africa’s GDP, making them major drivers of economic growth in the region.