African nations seek fair credit ratings at pivotal Washington dialogue

African countries have started a dialogue with major credit ratings agencies seeking a fair and just systematic ratings to their sovereign credit statuses in a bid to reshape the continent's financial landscape.

This comes afte a pivotal dialogue convened in Washington, uniting African institutions and global credit rating agencies to explore the creation of a fair and inclusive credit rating ecosystem tailored for Africa amid rising market volatility and sovereign defaults.

This engagement, which unfolded on the sidelines of the 2025 IMF–World Bank Spring Meetings, has marked a significant step toward addressing the myriad challenges faced by African economies in the global financial landscape.

With South Africa chairing the G20 and the African Union expecting permanent status in 2025, the urgency for an African-led credit rating solution is more pressing than ever. The outcomes of this dialogue herald an opportunity not only for reform but to ensure that Africa’s financial strategies more effectively meet its developmental aspirations.

With over 30 African countries currently assessed by sovereign credit ratings, the influence of global rating agencies on debt sustainability and access to financial markets cannot be overstated.

Organised by a consortium including the African Peer Review Mechanism (APRM), the United Nations Development Programme (UNDP), the United Nations Economic Commission for Africa (ECA), AfriCatalyst, and the African Center for Economic Transformation (ACET), the dialogue featured leading representatives from credit rating giants like Moody’s, S&P, and Bank of America.

Claver Gatete, executive secretary of the ECA, expressed concern over Africa's “financing paradox”—with a collective GDP exceeding $3 trillion yet only two nations holding investment-grade ratings.

“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,” Gatete said.

Providing insight into the complexity of credit ratings, Raymond Gilpin, chief economist for UNDP Africa, stressed the necessity for a development-centric approach that enhances data systems and cultivates stronger relationships between African governments and the 'big three' rating agencies.

“We must rethink how creditworthiness is defined and measured,” he said.

“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.”

Challenges plaguing African economies were laid bare by experts Misheck Mutize and Zuzana Schwidrowski, who identified data gaps, methodological opacities, and the lack of engagement between African administrations and credit rating firms as barriers to fair assessments.

They proposed that empowering African governments with tools to contend with inaccurate ratings is crucial and discussed the establishment of an African Credit Rating Agency (AfCRA) to serve as a complement to existing international frameworks.

A robust discussions arose regarding potential solutions, spearheaded by Roberto Sifon-Arevelo of S&P Global Ratings, Jorge Valez from Moody’s Ratings, and Bank of America’s Tatonga Rusike.

They were united in a vision to tackle long-standing perceptions of risk by enhancing transparency and collaborating with local banks and investors to better understand rating methodologies.

They further emphasized that while sovereign credit ratings were not the sole determinant of investor decisions, they exerted significant influence over borrowing costs, market confidence, and access to capital, highlighting the intricate relationship between perceptions and actual economic conditions.

Mavis Owusu-Gyamfi, President and CEO of ACET, echoed the sentiment of urgency, pointing to the ongoing challenges that African governments face in managing costs 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,” she said.

In a bid to enhance representation within global financial frameworks, Mutize clarified that the e Africa Credit Rating Agency (AfCRA) would not merely provide favourable ratings for African entities but would contribute to a diversity of assessments of African sovereigns, corporates, and sub-sovereigns.

“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,” Mutize said.

As the dialogue concluded, Daouda Sembene, CEO of AfriCatalyst, emphasised the critical need for collaboration among African institutions to achieve the reform objectives set out.

“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.

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