Morgan Stanley Upbeat on South Africa Outlook Despite Oil Shock

Morgan Stanley remains bullish on South Africa’s longer-term reform trajectory even as a global oil shock challenges the economy, fans inflation and may trigger higher interest rates.

Economists at the US lender said South Africa entered 2026 “on the front foot” with evidence of economic rebalancing, lower borrowing costs and a path toward sovereign credit-rating upgrades, before the Middle East conflict unleashed a sharp rise in energy prices.