REPUBLIC OF SOUTH AFRICA - Upgrade to the Republic of South Africa's credit rating by S&P Global Ratings

Upgrade to the Republic of South Africa's credit rating by S&P Global Ratings

REPUBLIC OF SOUTH AFRICA                             REPUBLIC OF SOUTH AFRICA
Department of National Treasury                      through
Issuer code: BIRSA                                   The RSA Domestic Sukuk Trustee (RF)
("National Treasury")                                Proprietary Limited (as trustee of The RSA
                                                     Domestic Sukuk Trust)
                                                     Incorporated in the Republic of South Africa
                                                     Registration number: 2023/671880/07
                                                     Issuer code: RSDI
                                                     ("Trustee")

UPGRADE TO THE REPUBLIC OF SOUTH AFRICA'S CREDIT RATING BY S&P GLOBAL RATINGS

The National Treasury hereby advises that S&P Global Ratings ("S&P") has upgraded the Republic of
South Africa's ("RSA") long-term sovereign ratings, assigning the country 'BB' from 'BB-' for foreign
currency and 'BB+' from 'BB' for local currency, with a Positive outlook.

According to S&P, the rating upgrade reflects RSA's improving growth and fiscal trajectory, alongside
a reduction in contingent liabilities tied to performance improvements at the state-owned electricity
utility, Eskom. The government is on track to post its third annual primary surplus (revenue minus
expenditure, excluding interest payments on debt) in 2025/26, while contingent liabilities are likely to
ease as Eskom is being reformed.

Further, general government revenues are forecast to outperform budgeted numbers for 2025/26,
despite the government having revised down its GDP growth forecasts. This is due to strong
value- added tax (VAT) and corporate income tax receipts, which have exceeded estimates, alongside
higher-than-expected tax buoyancy rates.

The sovereign credit rating upgrade marks the first upgrade for South Africa by any of the major credit
rating agencies in over 16 years. South Africa is one of just three countries globally to secure an S&P
upgrade in 2025, while continuing to maintain a positive outlook after the rating revision.

Government is improving the health of the public finances and accelerating infrastructure investments.
Over the medium term this will strengthen growth prospects, reduce borrowing costs, improve
confidence and foster faster job creation. The 2025 Medium Term Budget Policy Statement (MTBPS)
underscores government's commitment to fiscal sustainability, even in a low-growth environment.
Fiscal policy continues to support macroeconomic stability by stabilising debt in the current year,
growing the primary balance over the next several years and narrowing the budget deficit over the
Medium-Term Expenditure Framework (MTEF) period. Raising South Africa's growth trajectory
depends on continuing to strengthen macroeconomic stability, accelerating structural reforms, building
a capable state and improving public-sector infrastructure investment.

The S&P announcement in regard to RSA's credit rating is available from the following websites:

   -   https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3479175

   -   https://www.treasury.gov.za/comm_media/press/2025/2025111401%20Media%20statement
       %20-%20Government%27s%20response%20to%20SP%20Global%20Ratings%20.pdf


For further enquiries contact:

Terry Bomela-Msomi
National Treasury - Asset and Liability Management
Director: Debt Issuance and Management
012 315 5753 / +27 66 289 2492

Phillemon Ledwaba
TMF Corporate Services (South Africa) Proprietary Limited (representative of the Trustee)
011 666 0760 / +27 76 690 4003

Candice Risi
TMF Corporate Services (South Africa) Proprietary Limited (representative of the Trustee)
+27 66 444 0611

Pretoria
20 November 2025

Debt Sponsor
One Capital

Date: 20-11-2025 08:53:00
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