African policymakers are stepping up calls for greater transparency and fairness in how global credit rating agencies assess sovereign risk, warning that opaque and inconsistent methodologies are costing the continent billions in lost investment and higher borrowing costs.
At a workshop that seeks to promote transparency and build capacity around the sovereign credit rating processes used by major international credit rating agencies, finance officials and economists from across Africa said the current system is failing to reflect the true economic fundamentals and resilience of African economies.
“This is a space where power is exercised,” said Raymond Gilpin, Chief Economist for Africa at the United Nations Development Programme (UNDP). “And when you don’t understand how the power is exercised, you will always be behind.”
The two-day workshop, hosted by the African Peer Review Mechanism (APRM) in partnership with the UN Economic Commission for Africa (ECA), UNDP Africa, and Africatalyst, is taking place just ahead of the inaugural Africa Annual Credit Ratings Conference, which opens on 21 May. Organizers say the event is meant to equip governments with tools to navigate, challenge, and actively engage in the credit rating process while addressing macroeconomic challenges that impact national creditworthiness.
