South Africa's debt level steadies for first time in nearly 20 years, says President

In a weekly newsletter, President Cyril Ramaphosa welcomed recent progress in South Africa's public finances, noting that public debt has stabilized for the first time in nearly twenty years and is now set to decline. The government has maintained a primary budget surplus since 2023, indicating that revenue outpaces spending excluding debt service. Finance Minister Enoch Godongwana's 2026 Medium-Term Budget Policy Statement reported a debt-to-GDP ratio of 78.4% for the 2025/26 fiscal year and projected the primary surplus to rise from 1.7% to almost 3% of GDP by 2030.

Ramaphosa said this fiscal health will enable lower borrowing costs, greater infrastructure investment, and identified potential savings of more than 11 billion rand by eliminating low-priority projects. He acknowledged that many citizens have yet to feel the recovery, citing persistent unemployment, household financial pressure, and inadequate public services. The president called for turning financial stability into broader economic opportunity and improved living standards for all South Africans.