South Africa punching above its weight

• South Africa is indeed punching above its weight in the bond market, with its debt pricing already at investment-grade levels despite still being rated two steps below investment grade by major credit-rating firms.
• The country's improvement in state finances is attributed to reversing spending overruns into surpluses and reducing debt ratios, with the government on track to lower its debt-to-gross domestic product ratio for the first time in 17 years.
• The Treasury plans to introduce a 'principles-based' fiscal rule with spending targets enshrined in law to ensure fiscal sustainability, but the International Monetary Fund has forecast a continued rise in the debt-to-GDP ratio next year, sparking a debate that will be settled in February.