South Africa's gross external debt reaches $200.3 billion in Q4 2025
South Africa's gross external debt increased to $200.3 billion at the end of the fourth quarter of 2025. This marks a rise from $193.0 billion in the previous quarter, according to the South African Reserve Bank.
Government and banks drive debt growth
South Africa's gross external debt reached $200.3 billion by the end of 2025, marking a significant increase of $7.3 billion from the previous quarter.
This growth was primarily driven by the general government sector, whose external debt rose to $98.2 billion in Q4 2025, up from $93.9 billion in Q3. This represents a substantial portion of the total, with long-term debt securities accounting for the majority of this increase.
The deposit-taking corporations, excluding the central bank, also contributed significantly to the overall rise, with their external debt expanding to $43.5 billion from $38.8 billion in the preceding quarter.
Both short-term and long-term liabilities within this sector saw notable increases, reflecting higher external funding needs.
The central bank's external debt remained relatively stable at $769 million.
Consistent upward trend
The overall gross external debt has shown a consistent upward trajectory throughout 2025, starting from $168.4 billion at the end of 2024.
The total debt increased by nearly $32 billion over the year, highlighting growing external financing requirements.
While general government and deposit-taking corporations were the main drivers, public corporations maintained a relatively stable external debt of $18.1 billion.
Other sectors recorded $15.8 billion, with direct investment liabilities standing at $23.9 billion.
The majority of the country's external debt remains long-term, providing some stability, though short-term obligations for deposit-taking corporations saw a considerable jump in the final quarter.
Rising debt, growing scrutiny
The continued rise in South Africa's external debt, particularly from government and banking sectors, warrants close attention from policymakers.
While the current levels may be manageable, the persistent upward trend could increase vulnerability to global financial shocks.
Sustained growth in external liabilities demands robust fiscal management and careful monitoring of currency fluctuations to mitigate potential risks.
Source: Gross External Debt – Fourth Quarter 2025
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