S&P Global improved its outlook on sub-Saharan Africa’s two biggest economies, an indication that painful economic reforms are starting to pay off.
S&P lifted South Africa’s credit rating for the first time in two decades, pointing to efforts by Pretoria to increase its tax take and curb the growth of debt. The country, however, is still grappling with steep US tariffs as well as slow growth and persistently high unemployment.
Separately, S&P upgraded its outlook on Nigeria from “stable” to “positive.” Abuja’s scrapping of a costly fuel subsidy — which sparked massive anti-government protests — and the removal of currency restrictions have sparked economic growth and foreign capital inflows.