South African President Says Public Debt Stabilised

JOHANNESBURG, Oct 27 (Bernama-Xinhua) -- South African President Cyril Ramaphosa on Monday welcomed progress in restoring the country's public finances, saying public debt had stabilised for the first time in nearly two decades, reported Xinhua.

The government has maintained a primary budget surplus since 2023, meaning its revenue has exceeded expenditure excluding debt-servicing costs, Ramaphosa said in his weekly newsletter. "For the first time in nearly two decades, public debt has stabilised, and it is now beginning to decline."

Ramaphosa said the improved fiscal position would allow the government to further reduce debt, lower borrowing costs and increase investment in public infrastructure, which he described as an essential driver of economic growth and job creation.

His remarks followed the presentation of the 2026 Medium-Term Budget Policy Statement (MTBPS) in Parliament last Wednesday by Finance Minister Enoch Godongwana.

According to the MTBPS, South Africa's debt-to-gross domestic product (GDP) ratio stabilised at 78.4 per cent in the 2025/2026 fiscal year, while the primary budget surplus is projected to increase from 1.7 per cent of GDP in the current fiscal year to nearly 3 per cent by 2030.

Ramaphosa said rising debt-servicing costs had previously constrained government spending on schools, healthcare facilities, roads and other essential services.

He said the government was also working to improve the efficiency of public spending, with more than 11 billion rand (about US$660 million) in potential savings identified over the medium term by rationalising low-priority programmes.

Despite the fiscal improvements, Ramaphosa acknowledged that many South Africans had yet to feel the benefits of the economic recovery, citing persistently high unemployment, financial pressures on households and inadequate public services.

“Our job now is to turn financial stability into economic opportunity and a better quality of life for everyone," he said.

--BERNAMA-XINHUA