Ratings agency, Moody’s, is bullish on sub-Saharan Africa, including South Africa.
It estimates that the region will have economic growth of 4.2% in 2025, up from 3.8% in 2024. This is mainly because of energy and infrastructure investments.
It said that South Africa and Nigeria, the two biggest economies in the region, are implementing reforms which will see improvements in those two countries’ economic growth prospects.
However, Moody’s also said that there were a number of risks. It said issues such as drought and political risk could result in slower African growth. It also said that a stronger US dollar could also see debt servicing costs rise for African governments.
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