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S Africa's Treasury welcomes Fitch upgrade to BB with stable outlook

The National Treasury has welcomed credit rating agency Fitch's decision to upgrade South Africa's long-term foreign and local currency credit ratings to 'BB' from 'BB-' and to maintain its stable outlook.

The upgrade reflects South Africa's record of prudent fiscal management and its progress on fiscal consolidation, despite weak economic growth and domestic and external shocks.

This, together with GDP revisions, leaves the government debt-to-GDP ratio well below levels anticipated at the time of the rating downgrade to 'BB-' in 2020.

This is Fitch's first rating upgrade on South Africa in almost 21 years. South Africa is the second Group of 20 country to be upgraded by Fitch this year, Treasury notes.

According to Fitch, South Africa has transitioned from primary fiscal deficits to consistent and widening primary surpluses, alongside signs that government debt is stabilising amid improved revenue collection and disciplined expenditure management.

The long average-maturity of total government debt, at more than ten years, and low share of foreign-currency-denominated debt support the sovereign rating, it adds.

Fitch also points to ongoing reforms in the energy and logistics sectors that are expected to support economic growth in coming years as reason for the upgrade, says Treasury.

Credit rating agency S&P Global Ratings upgraded South Africa's rating by one notch in November 2025 and credit rating agency Moody's put the country's rating on a positive outlook.

All three major rating agencies now have South Africa on 'BB' or 'Ba2', which is two levels below investment grade. Moody's and S&P have the sovereign on a positive outlook, which indicates they could upgrade their ratings within 12 to 18 months.

Government remains committed to sound public finances and to implementing structural reforms that will support higher and more inclusive economic growth and underpin investor confidence, says Treasury director-general Dr Duncan Pieterse.

"Improved sovereign credit ratings help to lower borrowing costs for government, businesses and households and have tangible benefits for ordinary people.

"South Africa still has some way to go to regain its investment-grade credit rating but, for the first time in more than a decade, we are seeing a clear turnaround in the downward ratings trend. The turnaround is especially notable because it comes at a time when the global sovereign credit trend is overwhelmingly negative," he says.

"Fiscal policy continues to focus on achieving its twin objectives of stabilising and then reducing the debt-to-GDP ratio, by running a growing primary budget surplus where revenue exceeds nonexpenditure by an ever-wider margin. This will put government's debt level on a more sustainable path.

"We will embed this principle in a fiscal anchor, which we expect will be announced in the 2026 Medium-Term Budget Policy Statement," Pieterse says.

Ramaphosa pledges illegal immigration crackdown, promises economic growth push

Following his Sunday night announcement that government is taking decisive action to tackle illegal immigration, President Cyril Ramaphosa said on Monday this will happen simultaneously with government's plan to address the country's core economic challenges.

In his weekly letter to the nation, Ramaphosa added that government is balancing strict border enforcement with a revitalised economic strategy, by driving faster and inclusive economic growth, infrastructure development, industrial expansion and the creation of new jobs.

Following the adoption of the Comprehensive Approach for Migration Management by Cabinet, the State is intensifying its legislative enforcement, he pointed out.

Ramaphosa acknowledged growing community anxieties regarding national security and the rule of law, and he directly addressed the social and economic friction points raised by citizens.

He noted that some companies illegally employ and exploit undocumented foreign nationals and that public perception suggests foreign-owned spaza shops are crowding out local traders.

Sector-specific employment quotas for foreign nationals will be introduced, and informal businesses will have to be registered, Ramaphosa laid out.

He explained that while citizens fear that public infrastructure is overwhelmed, official statistics show foreign nationals account for a very small proportion of clinic, hospital, and school users.

Ramaphosa said organised syndicates do exploit migration weaknesses for drug trafficking, illegal mining, and extortion. However, the majority of foreign nationals are not involved in criminal activity.

Ramaphosa cautioned citizens against taking the law into their own hands, emphasising that only authorised State officials may enforce immigration laws. He linked local frustrations to broader systemic issues of poverty and unemployment, which often cause communities to target perceived competitors.

To solve the root causes of mass migration, South Africa is working with regional and continental partners to address the conflict, instability, and economic hardships driving people from their homes.

The President reminded citizens that South Africa was built on migration, urging the public to reject xenophobia, afrophobia, and violence, while remaining true to the country's Constitution.

MIXED REACTIONS

Meanwhile, DA leader Geordin Hill-Lewis also echoed Ramaphosa's sentiments for South Africans to reject xenophobia and uphold the country's constitutional values.

The DA said it will support every lawful effort by the Government of National Unity (GNU) to restore order, secure borders, and fix the broken systems that have allowed illegal migration to become a source of fear and frustration.

"… that is why the work being done by Minister Leon Schreiber at Home Affairs to strengthen lawful immigration control, improve documentation, and secure the border must be welcomed," Hill-Lewis stated.

He stressed that people must be in South Africa legally, and the law must be enforced by the State and not by mobs, vigilantes, or politicians who stoke hatred for votes.

"Anyone who incites violence against foreign nationals, including political leaders, must be arrested and prosecuted, and every South African must abide by the Constitution we share," he said.

He acknowledged that the deeper answer to the migrant crisis is jobs, growth and a capable State.

He wants the GNU to quickly implement the economic reforms needed to attract investment, unlock opportunity, cut red tape, fix infrastructure, and create the environment for South Africans to find work.

ActionSA president Herman Mashaba expressed disappointment with what he termed Ramaphosa's "weak and reactionary address", which he believes does nothing to address the immigration crisis that he claims was created by the ANC and perpetuated by the GNU government.

Mashaba pointed out that rather than presenting a clear shift in app...

My Vote Counts warns Rise Mzansi's R30m donation exposes flaws in Party Funding Act

Civil society group My Vote Counts (MVC) argues that Rise Mzansi's R30-million loan conversion highlights major flaws in the Political Party Funding Act (PPFA), saying it allows wealthy donors to obscure their identities and potentially exert undue influence.

In its latest quarterly disclosure report, the Independent Electoral Commission (IEC) notes that Rise Mzansi declared a R30-million donation. This came from an entity called "We are the People", which has apparently converted a previous loan into a donation.

MVC points out that it is the first time a loan has been converted into a donation, and that it is the first R30-million donation disclosed since President Cyril Ramaphosa raised the annual maximum donation limit from R15-million to R30-million in August 2025.

MVC argues said the primary issue is that there is no information about the actual donors under We are the People.

There is no website, no registered directors, and no formal registration on the Companies and Intellectual Property Commission (CIPC) database, MVC revealed, describing this as a loophole in the PPFA, which is meant to promote transparency.

MVC said while the PPFA uses a dual disclosure mechanism, requiring both the receiving party and the donor to submit forms indicating their identity, registration, or trust numbers, the public is frequently left in the dark about who the true donor is.

MVC intends to submit a Promotion of Access to Information Act (PAIA) application to uncover information about unidentified donors and is exploring legal avenues to make the IEC's quarterly reports more detailed and transparent.

The IEC's latest quarterly report reveals that political parties collectively disclosed just under R100-million in private funding.

The lion's share of disclosed private funding went to the DA, which led recent declarations with R57-million, followed by Rise Mzansi's R30-million, and ActionSA with R9.9-million. The total value of private donations above the disclosure threshold has now exceeded R1-billion.

Many of these donors represent powerful economic sectors, such as mining and finance.

Notable past declarations include Patrice Motsepe's Botho Botho (R10-million) to the ANC, Betway billionaire Martin Moshal (R5-million) to ActionSA, and Main Street 1564 (R10-million) and Harry Oppenheimer's daughter Mary Slack (R10-million) to the DA.

Despite the strides made under the PPFA, MVC warns that the system is far from perfect. The recent decision to double donation limits and increase the disclosure threshold increases secrecy in political funding, granting donors a greater ability to influence South African politics.

The landscape is also plagued by noncompliance, MVC says.

Most notably, the ANC failed to report two donations disclosed by their respective donors. One of these undisclosed donations, worth nearly R500 000, came from Valumax, a company that has received billions in tenders from the Gauteng Department of Human Settlements.

The MVC says for the transparency regime to work, the IEC must be adequately funded and empowered. Watchdogs have warned that a projected decrease in the IEC's budget for its Party Funding programme will severely limit its ability to investigate and enforce the law.

Ultimately, late, incomplete, or opaque disclosures deny voters the information needed to make informed democratic choices, MVC says.

It says it is involved with ongoing litigation to strengthen the PPFA, to ensure it achieves its stated objectives of absolute transparency and accountability.

S Africa launches 'historic' HIV prevention injection Lenacapavir

Describing it as an "historic turning point in South Africa's national healthcare", President Cyril Ramaphosa on Friday officially launched the long-acting HIV prevention drug Lenacapavir, in Secunda.

He revealed that 360 public health facilities across six provinces and 24 high-burden districts were fully prepared to administer the groundbreaking intervention.

He described Lenacapavir as more than just a medication, calling it one of the most significant scientific breakthroughs since the introduction of antiretroviral treatment (ART).

"To us, Lenacapavir is not just a medicine or a drug; to us it represents a major turning point in South Africa's national story," Ramaphosa said. "It represents the triumph of science over despair. It represents the power of innovation to save lives. And above all, it represents hope."

The revolutionary treatment requires only a single injection administered twice a year, providing powerful protection against HIV infection. Ramaphosa explained that this practical intervention would transform lives by dramatically reducing the barrier of daily adherence associated with traditional oral medication.

South Africa has set targets for the rollout of the injectable pre-exposure prophylaxis (PrEP). The government aims to reach close to one-million people by the end of 2027, with a broader goal of reaching three-million citizens over the next three years.

"It is a nation-building target. Every HIV infection prevented is a life protected. A family preserved. A future secured," he said.

To ensure the injection is accessible to all, government has partnered with the Global Fund and the Children's Investment Fund Foundation (CIFF). Together with State funding, this investment will contribute R1.3-billion toward the national rollout.

The President reiterated South Africa's stance that lifesaving medicines must not be reserved for the wealthy. He affirmed the country's commitment to expanding access through affordable generic medicines, technology transfer, and local manufacturing.

This strategy aligns with the African Union's broader goal to produce 60% of the continent's health products locally by 2040.

Ramaphosa noted that health security was inherently linked to economic development, stating that local manufacturing capacity was essential to national sovereignty, resilience, and prosperity.

While celebrating the breakthrough, Ramaphosa cautioned that Lenacapavir was not a silver bullet, but rather a powerful addition to the country's existing arsenal in the fight against HIV.

The injection is designed to complement existing strategies, including regular HIV testing, Oral PrEP and treatment as prevention, condom distribution, voluntary male medical circumcision, and behavioural interventions.

Ramaphosa stressed that final success still depended on continuous public education, personal responsibility, and ending the stigma and discrimination surrounding HIV.

While he acknowledged the effect of the HIV epidemic on South African society, he praised the resilience that allowed the country to build the largest HIV treatment programme in the world.

"South Africa has never been a passive observer in the global HIV response. We have been leaders. We have been innovators. We have been advocates for justice and equity. Today, we lead once again," Ramaphosa said.

Ramaphosa to address nation on migration action plan

President Cyril Ramaphosa will address the nation on the country's approach to managing migration, according to Minister in the Presidency Khumbudzo Ntshavheni.

The cabinet received and approved a comprehensive approach to migration that was developed by an inter-ministerial committee and has also approved the national action plan country report on migration in South Africa, Ntshavheni said at a media briefing on Friday.

She did not say when Ramaphosa will speak on the matter.

The announcement comes after a recent wave of anti-immigrant demonstrations has revived concerns about xenophobic violence in South Africa, where migrants are targeted in a climate of high unemployment and overstretched basic services.

Business leaders demand national govt step in to rescue Joburg from economic collapse

The South African business sector has issued an urgent call to political parties and national government to immediately stabilise the City of Johannesburg's fiscal and governance crisis.

Ahead of the upcoming local government elections, business leaders demand specific, costed recovery plans, consequence management for corruption, and active national intervention to prevent an economic emergency.

Johannesburg is the commercial capital of South Africa, accounting for about 16% of the national GDP and is the central hub where a disproportionate share of domestic and foreign investment decisions are made.

While the broader South African economic trajectory is showing signs of recovery – highlighted by energy stability and positive sovereign credit rating momentum – the visible decline of the City of Johannesburg threatens to undermine the country's growth story, business warns.

Leaders from the Business Unity South Africa, Business Leadership South Africa and the Business for South Africa steering committee emphasise that this is not a localised political dispute, but a critical national economic emergency.

They note that City of Johannesburg's challenges have escalated to a tipping point owing to several alarming indicators, that includes an unfunded adjustment budget, prompting National Treasury to place the metro on formal notice, with the July 2026 equitable share allocation currently at risk.

State utility Eskom has also warned it may suspend or throttle electricity supply to the city over mounting bulk electricity debt.

Capital expenditure has dropped to 6% of the City's budget, with maintenance spending standing at 0.5% of asset value, roughly one-eighteenth of the metro average.

And, the Auditor-General estimated yearly losses of about R12-billion owing to unauthorised, irregular, and wasteful expenditure.

Business notes that fragile coalitions have resulted in a constantly changing administration, producing ten mayors in the last decade.

The business leaders say while business remains non-partisan, it will not be passive.

Business leaders want immediate, tangible changes rather than empty promises, urging political parties to stabilise the City's finances now and not after the next election.

They want the elimination of irregular expenditure and clear, transparent reporting against specific service delivery indicators, and "consistent and exceptionless" enforcement of accountability for corruption and maladministration.

All parties contesting the elections must provide specific, costed commitments on how they plan to address the fiscal crisis, restore infrastructure, and re-establish functional governance, they says.

Because these structural and financial crises have exceeded the capabilities of current city-level leadership, business leaders are urging President Cyril Ramaphosa and the Government of National Unity to step in.

The national government is being urged to use available powers to drive structural reforms, assist with financial stabilisation, and ensure consequence management is enforced where governance standards fail.

Further, drawing on the successes of the national government-business partnership, which yielded measurable progress in energy and freight logistics, the private sector says it is ready to lend its expertise, execution capability, and resources.

However, they add that this is on condition of a "capable, scrupulous counterparty" that can be held to account.

DA requests IEC investigation over ANC-Russia 'disinformation network'

The DA has formally requested that the Independent Electoral Commission (IEC) launch an immediate investigation into ANC secretary-general Fikile Mbalula and his adviser Bongani Mbindwane.

This development follows recent investigative reports alleging that the ANC officials coordinated with the Russian Foreign Intelligence Service (SVR) to run targeted disinformation operations designed to disrupt South Africa's democratic elections.

According to a letter sent to IEC chief electoral officer Sy Mamabolo on Thursday, the DA claims that leaked SVR documents expose a "deep-seated collusion" between the Russian Federation and high-ranking ANC members.

The alleged operation aims to dismantle opposition support through calculated cyber smear campaigns, manufactured scandals, and electoral interference.

DA spokesperson on International Relations and Cooperation Ryan Smith, said local and international investigative journalists have traced these operations back to a Russian company named 'Politology'.

Led directly by the SVR, this entity allegedly collaborated with Mbalula and Mbindwane to "manipulate" public perception and weaken South African opposition parties.

The scope of the alleged interference includes circulating fraudulent documents and creating fictitious events on social media and specifically targeting then DA federal leader John Steenhuisen and Federal Council chairperson Helen Zille.

Smith said this also allegedly included deploying coordinated cyber disinformation campaigns to suppress DA votes during the 2024 National and Provincial Elections, with some hostile operations tracking as far back as 2019.

The DA's escalation to the IEC comes after it says the Department of International Relations and Cooperation refused to take diplomatic action. In March, the ministry publicly declined to démarche the Russian Ambassador to South Africa, dismissing the election interference allegations as farcical.

Smith strongly criticised this stance, pointing out a severe conflict of interest within the State. Ministers tasked by oath to defend the country's democratic architecture are instead prioritising the political and financial survival of the ANC, he stated.

The DA believes South Africans share no common values with a Russian dictatorship.

As the IEC reviews the formal complaint, the DA is calling for swift accountability and appropriate sanctions against Mbalula and Mbindwane, warning that the State will not stand by while the ruling party attempts to compromise the voting booth with foreign assistance.

South Africa to send envoys to other African countries after xenophobic attacks, Ramaphosa says

South Africa will send envoys to other African countries and around the world after a spate of xenophobic attacks targeting immigrants from other nations on the continent, President Cyril Ramaphosa said on Thursday.

Ramaphosa made the comments at a press conference after talks with his Kenyan counterpart William Ruto at the seat of South Africa's government in Pretoria.

"There will be envoys, yes, there will be people that we will send around not only on the continent but also around the world," Ramaphosa said.

He continued: "What we seek to do is to get the issue of migration ... properly addressed, ... we should get as many key role players, countries ... to work together."

Ramaphosa said he and Ruto had touched on the topic of migration during their talks.

"As South Africa, we are addressing this matter," Ramaphosa told reporters. "And I explained that South Africans are not xenophobic. South Africans are Africans. They want to live with other Africans peacefully".

Malawi to repatriate citizens from South Africa amid anti-immigrant attacks

Malawi will join other countries in repatriating its nationals seeking to leave South Africa, where attacks on African migrants have been reported in parts of the country.

The Ministry of Foreign Affairs said in a statement late on Tuesday that the programme would be limited to citizens who have requested assistance, with details to be announced once logistical arrangements are finalised.

Xenophobic attacks are a recurring problem in South Africa, where immigrants are often blamed for economic challenges such as high unemployment.

Anti-immigrant groups have set a June 30 deadline for undocumented foreigners to leave, fuelling fear among migrant communities.

Mozambique said five of its citizens were killed in violence in the coastal town of Mossel Bay over the weekend, while Ghana repatriated hundreds of nationals last week.

South Africa's government has pledged to crack down on those perpetrating or inciting violence against migrants. President Cyril Ramaphosa told parliament on Tuesday that while tackling illegal immigration was important, the country should not resort to "violence, xenophobia and vigilantism."

South Africa has the biggest economy on the continent and is a destination for people from neighbouring countries seeking work. It also hosts refugees and asylum seekers fleeing conflict in countries like Democratic Republic of Congo.

South Africa private sector contracts after four months of growth, PMI shows

South Africa's private sector contracted in May as output and new orders fell amid higher fuel prices and uncertainty linked to the Iran war, a business survey showed on Wednesday.

The S&P Global South Africa Purchasing Managers' Index (PMI) fell to 49.6 in May from 51.6 in April. The 50 mark separates growth from contraction.

"The war in the Middle East, and increases in fuel prices in particular, took their toll on the South African private sector in May. Renewed falls in output and new orders were signalled as inflationary pressures strengthened further," said Andrew Harker, economics director at S&P Global Market Intelligence.

Output fell for the first time in five months, with firms citing higher fuel prices, the Iran war as well as stormy weather in South Africa. New orders dropped for the third time in four months and at the fastest pace so far this year.

Survey respondents said price rises linked to the Middle East conflict hurt international demand, with lower new orders reported from economies across Europe and Africa.

Despite the weaker business environment, firms were more optimistic about the outlook for the year ahead.

S&P Global said confidence was the highest so far in 2026, supported by pipelines of new work, advertising plans and hopes for more stable conditions.