Ratings agency Moody's logo and rating grid. Jean-Marc Barrère/Hans Lucas via AFP
JOHANNESBURG - Some possible short-term pain but long-term gain. That’s the way global rating agency Moody’s is viewing South Africa’s economy.
It says the war in the Middle East could affect the country’s prospects in the short term, shaving off a fifth to half a percentage point from economic growth.
In the longer term Moody’s is happy with South Africa’s efforts to stabilise its debt and implement reforms.
It said sustained progress in electricity, logistics and water reforms could help South Africa attract investments.
Moody’s sid more reliable port and rail operations should support mining and manufacturing and reduce transport costs.
The rating agency expects economic growth to top 2 percent by 2028, if reform progress is sustained.
South Africa grew by just half a percent in 2025 and 1.1 percent last year.