How much do you know about South Africa credit rating? Is it strong, or is it something we should be concerned about? More to the point, how does it affect you and your finances?
The truth is, South Africa credit rating history isn’t in the best of shapes. But what does this mean, exactly?
Read on to learn where South African credit rating stands, how things look for South Africa in future prospects, and how you can get your credit together as well.
South Africa Credit Rating History Overview
In its 24 years of democracy, South Africa has undergone a fluctuation of changes, and its credit rating has as well.
During the years when Presidents Nelson Mandela and Thabo Mbeki were in office, the economy started to shift in an upward direction overall.
At the beginning of Mandela’s presidency, South Africa was placed in what is known as “junk status”. This meant that both the country’s local and foreign currency debt is rated as being sub-investment grade.
However, when Mandela was in office, South Africa’s credit started to climb the ladder. It was a steady climb, but still much better than it was earlier on.
After Mandela handed the reigns of democracy to Mbeki, the economy was reaching its best years.
South Africa was gaining momentum, and by the year 2008, it had reached its highest peak in its democratic history.
However, in 2009 things took a turn for the worst when our country was hit by the global economic crisis. Despite the efforts of President Zuma, the crisis hit South Africa too hard and too fast, and all progress was quickly lost.
To this day, South Africa credit rating is still listed at junk status, with little progress made since the crisis.
Will Things Get Better?
As with all things, the future of South Africa remains uncertain. However, if we look at the past, we can be hopeful that the economy will rise again – and soon.
Many countries worldwide are beginning to recover from the global crisis, and South Africa can expect to make a comeback of its own within the next decade.
That means in a few years, your own credit could very well begin to improve as the economy regains its footing.
For now, the best way to improve your credit rating is to continue to pay your bills on time to prove your reliability to credit companies. Then, when the economy starts to improve, you will be well ahead of the competition.
Better Loans for All
Now that we’ve looked into South Africa credit rating history, you need to know where you can go to put your own personal credit into action.
We specialize in offering payday loans between R500 and R8,000, so you can get the money you need for the job.
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Visit our blog to learn more about credit, loans and personal finance.