IMF urges South Africa to adopt binding government debt limits

The International Monetary Fund has urged the South African government to adopt a clearer and more binding formal debt rule to ensure the nation's public debt is placed on a definitive downward path. In the International Monetary Fund's Article IV report, published following a staff visit in late November and early December 2025, the Fund recommended that South Africa ZA target a reduction in government debt to approximately 70% of GDP over the medium term and around 60% over the longer term. The International Monetary Fund stated that such a rule would strengthen fiscal credibility and help lower borrowing costs for the country.