S&P Global Upgrades Outlook for South Africa and Nigeria Amid Economic Reforms

S&P Global has revised its outlook for sub-Saharan Africa’s two largest economies, signaling that recent economic reforms are beginning to show results.

In a landmark move, South Africa’s credit rating was upgraded for the first time in two decades, reflecting Pretoria’s efforts to boost tax revenue and contain debt growth. Despite the upgrade, the country continues to face challenges, including steep US tariffs, slow economic growth, and persistently high unemployment.

Meanwhile, Nigeria’s outlook was raised from “stable” to “positive.” The upgrade comes after Abuja scrapped a costly fuel subsidy, a decision that previously triggered widespread protests, and removed currency restrictions, fostering both economic growth and increased foreign investment inflows.

S&P’s adjustments highlight the impact of structural reforms in improving investor confidence and supporting macroeconomic stability across the region.