Africa-Press – Ghana. The United Nations Economic Commission for Africa (ECA), in partnership with the African Peer Review Mechanism (APRM), has jointly published the 12th edition of the Africa Sovereign Credit Rating Outlook.
This edition provides a comprehensive review of rating actions by Moody’s, Standard & Poor’s (S&P), and Fitch Ratings across African economies, highlighting how global financial conditions, fiscal pressures, and governance reforms shaped sovereign credit trajectories during the year
It also presents a comparative analysis of rating methodologies between Africa and other regions, while offering recommendations to international credit rating agencies (ICRAs) and African governments on improving credit ratings.
According to the report, several African countries experienced sovereign credit rating upgrades in the second half of 2025, driven by stronger macroeconomic performance, fiscal consolidation, and progress in debt restructuring. Côte d’Ivoire, for example, was upgraded by Fitch due to political stability, sustained growth above 6%, and proactive debt management strategies, including Eurobond buybacks and diversification into Samurai bonds. Other countries such as Ghana, Egypt, Kenya, Morocco, Seychelles, South Africa, Tunisia, and Zambia also recorded upgrades.
Conversely, Botswana’s rating was downgraded by both Moody’s and S&P following a sharp decline in diamond revenues, which weakened fiscal balances and exposed vulnerabilities linked to limited diversification. Despite this, Botswana retained its investment-grade status. Gabon, Madagascar, and Senegal also suffered downgrades.
Outlook changes across the continent were mixed, reflecting evolving risks and opportunities. Cape Verde, for instance, received a positive outlook revision from S&P, signaling potential future upgrades if current improvements are sustained.
The report outlines consolidated recommendations to help African governments strengthen their sovereign credit profiles. It calls for stronger engagement between governments and rating agencies to ensure decisions reflect real-time reforms, improved transparency in methodologies, and a review of constraints such as the sovereign-ceiling framework that limits ratings of strong domestic banks and corporates.
It further urges agencies to broaden their assessment of fiscal strategies, recognizing domestic borrowing as a deliberate development-oriented policy rather than market distress. Governments are encouraged to enhance transparency and diversify their investor base to reinforce credibility.
The report emphasizes adapting global rating methodologies to African realities, including informal sectors, development priorities, and reform momentum, while accelerating the operationalization of the African Credit Rating Agency (AfCRA) to provide ratings better aligned with African contexts.
This collaboration between ECA and APRM reflects ongoing efforts to strengthen Africa’s collective understanding of sovereign rating processes, support Member States in navigating global financial systems, and advocate for fair and transparent rating practices. Its findings will
feed into upcoming policy dialogues, continental workshops, and a webinar designed to disseminate insights to stakeholders across Africa.
