JOHANNESBURG, Feb 10 – South Africa’s economy has moved into its most favorable position in a decade, with growth prospects improving as reforms take hold and confidence strengthens, according to Standard Bank.
Speaking at a media briefing on Tuesday, Goolam Ballim, chief economist at Standard Bank Group, said Africa’s largest economy has entered a more constructive phase that could support faster expansion if longstanding infrastructure constraints are addressed.
Ballim pointed to a combination of political and economic factors underpinning the improved outlook. These include South Africa’s first sovereign credit rating upgrade since 2005, the relative stability brought by the coalition government formed after the 2024 elections, and targeted reforms that have lifted the performance of critical state-owned utilities.
Progress in the electricity and port sectors has been particularly significant, easing bottlenecks that have weighed on growth for years. Improved reliability at power stations and operational gains at ports have helped restore business confidence and improve sentiment across the economy, Ballim said.
While structural challenges remain, Standard Bank sees scope for growth to accelerate if efforts to clear infrastructure backlogs continue and reform momentum is sustained. The bank’s assessment signals a shift in tone for an economy that has struggled with weak growth, energy shortages, and policy uncertainty for much of the past decade.
