Important upgrade for South Africa is already happening

• South Africa's bond market is already pricing the country's debt as investment grade, despite ratings companies remaining at BB.
• The government has reversed spending overruns into surpluses, with debt ratios set to decline from the current fiscal year, driven by a sustained drop in debt-to-gross domestic product ratio.
• The Treasury plans to introduce a 'principles-based' fiscal rule with spending targets enshrined in law to ensure fiscal sustainability, while the International Monetary Fund forecasts the debt-to-GDP ratio to continue rising to 79.7% next year.