With over 30 African countries subject to sovereign credit ratings, the influence of global rating agencies remains profound—shaping debt sustainability and access to international capital. On the sidelines of the 2025 IMF–World Bank Spring Meetings, African institutions and global stakeholders came together for a high-level dialogue to champion a fairer, more transparent, and inclusive credit rating framework tailored to Africa’s unique development context.
Hosted by the Open Society Foundations and convened 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), the event brought together senior representatives from Moody’s, S&P, and Bank of America for frank discussions on Africa’s credit rating challenges and financing solutions.
Against a backdrop of rising market volatility, sovereign defaults, and shrinking fiscal space, participants called for urgent reforms to address systemic barriers—including data gaps, methodological opacity, and limited engagement between African governments and the major credit rating agencies (Moody’s, S&P, and Fitch).
Ambassador Claver Gatete, Executive Secretary of UNECA, highlighted the continent’s financing paradox: despite a collective GDP exceeding $3 trillion, only two African nations are rated investment grade.
“A healthy credit rating ecosystem goes beyond evaluating risk—it becomes a platform for mobilizing capital, improving creditworthiness, and advancing Africa’s broader development goals,” he said.
Representing UNDP Africa Regional Director Ms. Ahunna Eziakonwa, Chief Economist Dr. Raymond Gilpin underscored the need to redefine creditworthiness.
“At UNDP, we believe a development-centric approach is essential. Strengthening institutions, enhancing data systems, and reshaping the narrative around Africa’s creditworthiness are central to our mission,” Dr. Gilpin stated.
Dr. Misheck Mutize, Lead Credit Rating Expert at APRM, and Dr. Zuzana Schwidrowski, Director of Macroeconomics, Governance and Finance at UNECA, discussed practical steps toward strengthening African governments’ capacity to challenge inaccurate ratings and accelerating efforts to establish the African Credit Rating Agency (AfCRA).
AfCRA, they emphasized, will not issue favorable ratings by default, but will introduce a necessary diversity of credible, contextualized assessments for African sovereigns, corporates, and sub-sovereigns.
Senior representatives from the global credit rating sector—including Mr. Roberto Sifon-Arevalo (S&P), Mr. Jorge Valez (Moody’s), and Dr. Tatonga Rusike (Bank of America)—welcomed the initiative. They acknowledged the need to address persistent misperceptions and improve transparency and investor education around rating methodologies.
“Credit ratings are not the only factor investors consider, but they significantly influence borrowing costs and market confidence,” noted Mr. Sifon-Arevalo.
Ms. Mavis Owusu-Gyamfi, President and CEO of ACET, added:
“Given ongoing stress around capital access and cost, this initiative is vital—especially in ensuring that the credit rating process accounts for Africa’s diversity and economic realities.”
Closing the event, AfriCatalyst CEO Dr. Daouda Sembene emphasized the power of collaboration.
“AfriCatalyst is proud to lead this crucial dialogue, building on our Credit Ratings Initiative with UNDP. By working together, African institutions and global rating agencies can create a more robust, representative, and empowering credit rating ecosystem.”
Key outcomes from the dialogue included calls for:
- Regular, transparent engagement between credit rating agencies, African governments, and investors;
- Stronger African institutional narratives that reflect reform progress and resilience;
- Local capacity-building and collaboration, particularly through the development of AfCRA as a complementary and credible alternative to global rating agencies.
As South Africa chairs the G20 and the African Union assumes permanent membership in 2025, the momentum toward an African-led credit rating solution carries heightened urgency. The dialogue’s outcomes are expected to feed into broader reforms aimed at reshaping the global financial architecture to better serve Africa’s development aspirations.
