Architecture

With more than 30 African countries subject to sovereign credit ratings, the decisions of global rating agencies significantly impact debt sustainability and access to international financial markets. At a high-level dialogue held on the sidelines of the 2025 IMF–World Bank Spring Meetings, African institutions and global credit rating agencies reaffirmed their commitment to developing a fair, transparent, and inclusive credit rating ecosystem for Africa.

Organized by the African Union's African Peer Review Mechanism (APRM), the United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa (UNECA), AfriCatalyst, and the African Center for Economic Transformation (ACET), and hosted at the Open Society Foundations, the dialogue brought together senior representatives from Moody's, S&P, and Bank of America for a candid discussion on financing solutions for African countries.

Against a backdrop of rising market volatility, sovereign defaults and constrained fiscal space, the dialogue aimed to address urgent reforms in Africa's credit rating framework. Speakers identified structural issues such as data gaps, methodological opacity, and under-engagement between African governments and the ‘big three' credit rating agencies (Moody's, S&P, and Fitch), as barriers to accurate ratings.

Amb. Claver Gatete, Executive Secretary of UNECA, acknowledged Africa's financing paradox—a combined GDP of over $3 trillion, yet only two countries rated investment grade—and underscored the urgent need for reform. “Ultimately, a healthy credit rating ecosystem goes beyond evaluating risk – it becomes a platform for mobilizing capital, improving creditworthiness, and supporting Africa's broader development goals,” he added.

“We must rethink how creditworthiness is defined and measured,” said Dr. Raymond Gilpin, Chief Economist, UNDP Africa speaking on behalf of Ms. Ahunna Eziakonwa, UNDP Regional Director for Africa. “At UNDP, we believe a development-centric approach is essential to supporting governments in strengthening institutions, improving data systems, and engaging effectively with credit rating agencies to reshape the narrative around Africa's creditworthiness.”

African economies face mounting credit rating challenges, including perceptions of bias, lack of transparency and inconsistencies in rating methodologies. Dr. Misheck Mutize, Lead Credit Rating Expert at APRM, and Dr. Zuzana Schwidrowski, Director of Macroeconomics, Governance and Finance at UNECA, proposed solutions to addressing the capacity of African governments to respond to inaccurate or unfair credit ratings and steps toward creating an African Credit Rating Agency that complements and expands existing credit ratings coverage globally.

Mr. Roberto Sifon-Arevelo, Managing Director at S&P Global Ratings, Mr. Jorge Valez, Senior Vice President at Moody's Ratings, and Dr. Tatonga Rusike, Chief Economist for Africa at Bank of America, outlined opportunities to remedy longstanding risk perception issues and working together with banks and investors to build capacity  and a better understanding of rating methodologies to address transparency. They further emphasized that while sovereign credit ratings are not the sole determinant of investor decisions, they exert significant influence over borrowing costs, market confidence, and access to capital.

"Given the ongoing stress in African governments related to both cost of capital and access to capital it is critical to ensure that credit ratings reflect the many different African contexts. This initiative is an important step in that regard - particularly engaging the credit rating agencies," shared Ms. Mavis Owusu-Gyamfi, President and CEO of ACET.

“The Africa Credit Rating Agency (AfCRA) is not being established to issue favourable ratings for African entities, but rather to contribute to a diversity of rating opinions that support more accurate assessments of African sovereigns, corporates, and sub-sovereigns,” expressed Dr. Mutize. “Our priority is to build a credible, independent, and sustainable institution that plays a vital role in developing domestic debt markets and rebalancing Africa's position within the evolving global financial architecture.”

In his closing remarks AfriCatalyst's CEO Dr. Daouda Sembene stressed the urgent need for collaboration among African institutions. “AfriCatalyst is proud to be at the heart of this critical dialogue, building on the foundation of our Credit Ratings Initiative with UNDP. We are optimistic that through stronger collaboration between African institutions and global rating agencies, we can foster a more accurate, robust, and representative credit rating ecosystem—one that empowers African nations and promotes sustainable growth.” said Daouda.

Key messages included the need for: transparent and regular engagement between rating agencies, investors, and African governments; stronger institutional narratives that reflect the continent's resilience and reform efforts; and local capacity-building and collaboration, particularly through the proposed African Credit Rating Agency, which aims to provide credible, contextual alternatives to global ratings.

As South Africa chairs the G20 and the African Union assumes permanent membership in 2025, the call for an African-led credit rating solution takes on added urgency. The outcomes of this dialogue will contribute to ongoing efforts to reform the global financial architecture and ensure Africa's capital works better for Africa's development.

Distributed by APO Group on behalf of AfriCatalyst.

Media Contacts:
Bineta Pouye
bpouye@africatalyst.com

Michelle Mendi Muita
michellemendi.muita@undp.org

Ejigayhu Tefera
ejigayhu.tefera@aprm-au.org

Jean-Marc Kilolo
jean-marc.kilolo@un.org

Belinda Ayamgha
bayamgha@acetforafrica.org