Global Credit Rating Agencies Reaffirm Commitment to Develop Fair, Inclusive Credit Rating Ecosystem for Africa

Addis Ababa, May 2, 2025 (ENA) --- African institutions and global credit rating agencies reaffirmed their commitment to developing a fair, transparent, and inclusive credit rating ecosystem for Africa.

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 (ECA), 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.

Executive Secretary of ECA, Claver Gatete acknowledged Africa’s financing paradox—a combined GDP of over 3 trillion USD, 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 Raymond Gilpin, Chief Economist, UNDP Africa, speaking on behalf of 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.

Roberto Sifon-Arevelo, Managing Director at S&P Global Ratings, Jorge Valez, Senior Vice President at Moody’s Ratings, and 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.

In his closing remarks AfriCatalyst’s CEO Daouda Sembene stressed the urgent need for collaboration among African institutions.

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, according to ECA.