Africa-Press – South-Africa. Political and economic expert Dr Frans Cronje says there are many positive signs in the South African economy, which is a significant turning point for the country.
He said Finance Minister Enoch Godongwana’s 2025 Medium-Term Budget Policy Statement was very positive.
Godongwana tabled his medium-term budget on Wednesday, 12 November 2025, which showed an encouraging trajectory.
He said that South Africa’s debt-to-gross domestic product ratio will stabilise at 77.9% in the current fiscal year.
“This is the first time since the 2008 financial crisis that public debt will not grow as a percentage of GDP,” he said.
The government expects to achieve a primary budget surplus of R68.5 billion this year, which is projected to grow to R224 billion by 2028/2029.
The overall budget deficit is forecast to narrow from 4.5% of GDP in 2025/2026 to 2.7% of GDP by 2028/2029.
This year, revenues are expected to exceed the budget estimates by R19.3 billion. Meanwhile, debt-service costs will be lower by R4.8 billion.
Apart from encouraging hard numbers, South Africa was also removed from the Financial Action Task Force grey list.
“Exiting the grey list enhances South Africa’s attractiveness to investors and makes it easier to do business with us,” Godongwana said.
All these developments did not go unnoticed by the international investment and financial community.
On Friday, 14 November 2025, S&P Global raised South Africa’s foreign and local currency credit ratings.
It also gave South Africa a positive outlook, reflecting the potential for further improvements in fiscal metrics and stabilisation of government debt.
Frans Cronje’s view on South Africa’s economy
Dr Frans Cronje
Cronje told the State of the Nation podcast that the budget policy statement indicates that South Africa’s fiscal position is well under control.
However, he noted that the budget deficit is significantly higher than economic growth and that debt levels are much too high.
Despite this, there are positive developments. South Africa has run a primary budget surplus (before interest payments) for many years.
“This means if you can sort out the debt, the country has more than enough money to run its operations,” he said.
“Another positive is that the minister could credibly say that the debt curve in South Africa has peaked.”
Another positive sign, Cronje said, was that Godongwana’s speech also contained a strong political statement.
“It was the strongest political statement to date about the long-term sustainability of the government of national unity (GNU),” he said.
He added that the global economic environment will give the South African Reserve Bank room to cut interest rates, which will bolster the local economy.
Another positive factor is that South African bond rates are declining, which makes serving local debt more affordable.
“The Finance Minister’s message to the investment world is that they have South Africa’s finances well under control,” Cronje said.
“The financial foundation upon which we must build the South African economy is sound and well managed.”
He said GNU sceptics should re-examine their scepticism following Godongwana’s positive 2025 Medium-Term Budget Policy Statement.
For More News And Analysis About South-Africa Follow Africa-Press
