South Africa's National Treasury said on 10 June 2026 that it had fully funded the government's foreign-currency borrowing requirement for the 2026/27 fiscal year, securing about $3.2 billion entirely through concessional financing from development finance institutions and multilateral development banks.
"The foreign funding programme, amounting to approximately US$3.2 billion, has been fully funded through concessional financing secured from development finance institutions and multilateral development banks," Treasury said in a statement. No commercial bond issuance was required.
NO FURTHER REQUESTS FOR PROPOSALS
Treasury said no additional foreign currency funding would be raised for the remainder of the fiscal year. "Accordingly, no further Requests for Proposals (RFPs) for foreign currency funding will be issued for the balance of the current fiscal year," it said. The funding process is expected to resume in the 2027/28 fiscal year, subject to government funding requirements, market conditions and the approved borrowing strategy.
Under the government's foreign funding strategy, concessional financing remains the preferred source of foreign currency funding where available and appropriate, Treasury said, citing its favourable pricing, longer maturities, grace periods and overall contribution to prudent debt management. "National Treasury remains committed to prudent debt and risk management and will continue to engage market participants and provide updates as necessary," it added.
FISCAL RISKS
The announcement came on the same day that the South African Reserve Bank published its biannual Financial Stability Review, which flagged fiscal vulnerability, citing higher borrowing costs, a weaker rand and large upcoming debt redemptions as key risks to South Africa's debt trajectory. The review also said the country's foreign exchange reserves had grown to more than 16% of gross domestic product, the highest recorded level since the early 1960s.