South Africa’s debt burden is stabilising for the first time in nearly two decades, Finance Minister Enoch Godongwana announced on Wednesday.
Presenting his budget speech to parliament, Godongwana outlined spending plans of approximately $168 billion for the 2026/2027 financial year.
The country’s debt, which had reached nearly 80% of GDP, is expected to ease to 77.3% this year and decline further next year.
Godongwana attributed the improvement to South Africa’s first major credit upgrade in over 16 years and its removal from a global money laundering watchlist.
With fiscal pressures easing, the government will increase security spending to 291 billion rand by 2028 to fund army deployments alongside police in crime hotspots. The move follows President Cyril Ramaphosa’s directive to address violence in a country averaging 60 killings per day.