80TH SESSION OF THE UNITED NATIONS GENERAL ASSEMBLY
High-Level Side Event
Theme:
“Reconfiguring Global Credit Rating Practices: African Perspectives on Reforming the Financial Architecture”
Statement
By
Mr. Claver Gatete
United Nations Under-Secretary-General and
Executive Secretary of ECA
New York, USA
23 September, 2025
H.E. Mahmoud Ali Youssouf, Chairperson, African Union Commission,
H.E. Sidi Ould Tah, President of the African Development Bank Group,
H.E. Marie-Antonnette Rose Quatre, Chief Executive Officer of African Peer Review Mechanism,
Ms. Ahunna Eziakonwa, UNDP Assistant Administrator and Regional Director for Africa,
Dr. Daouda Sembene, President and CEO, AfriCatalyst,
Mr. Samaila Zubairu, President and CEO, Africa Finance Corporation,
Partners,
Distinguished Delegates,
On behalf of the United Nations Economic Commission for Africa, it is my distinct honour to welcome you to this important side event, co-organized by ECA together with the African Peer Review Mechanism, the African Union, UNDP, AfriCatalyst and other partners.
We are grateful to our co-convenors, to the African Union Commission under the leadership of H.E. Mahmoud Ali Youssouf, to the APRM under the stewardship of Ambassador Marie-Antonnette Rose Quatre, and to all our partners.
I also extend my appreciation to Ms. Ahunna Eziakonwa of UNDP, to AfriCatalyst and ACET, and to all distinguished panelists who enrich this vital dialogue.
Excellencies,
Distinguished Delegates,
We meet at a time when the global financial landscape is under severe strain.
As we speak, the world continues to grapple with the aftershocks of the COVID-19 pandemic, the persistence of geopolitical conflicts and the escalating climate crisis.
Inflationary pressures and tighter global monetary policies have driven up the cost of capital everywhere.
Meanwhile, development aid — once seen as a lifeline — is diminishing, both in volume and in political priority.
So, what does this mean for developing countries, especially Africa?
It means debt vulnerabilities are rising and governments are being forced to make difficult choices.
Should limited resources be spent on debt service, or on education, health and climate-resilient infrastructure?
Should governments meet obligations to creditors abroad, or invest in the aspirations of their youth at home?
Africa embodies this paradox most vividly, especially when the G20 Common Framework is not addressing the debt issue.
Despite some of the lowest default rates globally, Africa pays, at least, three times more to borrow than advanced economies.
Sadly, this so-called “Africa premium” is often not rooted in fact but in perception.
How can we speak of sustainable development if the price of money itself undermines Africa’s future?
And how can a continent so rich in potential be made poor by the cost of capital?
This is why reforming the global financial architecture is not a matter of charity but a matter of justice.
It is why the establishment of the African Credit Rating Agency is not symbolic but strategic.
And it is why Africa’s financial destiny must no longer be defined from outside, but shaped from within.
Excellencies,
Distinguished Delegates,
Without question, Africa’s financial future cannot be built on shrinking aid flows or cycles of unsustainable borrowing.
To unlock the promise of our people and resources, we have no other choice but to pursue a comprehensive agenda that brings together reform, innovation and resilience.
In this light, kindly allow me to highlight five priorities for our collective action.
First, we must operationalize the African Credit Rating Agency with speed and credibility.
This is a key pathway to correct the distortions that have for too long exaggerated Africa’s borrowing costs.
It requires a decisive transition from vision to implementation and must rest on robust governance, long-term financing and rigorous methodologies.
It must also not be seen as a regional alternative but as a global partner that enriches the credit rating ecosystem with accuracy, transparency and fairness.
Second, we must strengthen domestic resource mobilization while deepening African capital markets.
These two pillars are inseparable.
We must broaden the tax base, leverage digital tools and tackle illicit financial flows to enable governments to expand fiscal space.
At the same time, deep and integrated capital markets will allow African savings to finance African priorities, reduce dependence on foreign-currency debt and foster innovation from green and blue bonds to blended finance.
At ECA, we are supporting Member States to build this ecosystem from governance reforms and stock exchange integration to investor education and regulatory capacity.
Third, we must build the institutional and technical capacity for countries to reach and sustain investment grade.
It is unacceptable that, out of fifty-four African nations, only two are currently deemed investment grade.
This is not a fair reflection of our continent’s fundamentals, but of systemic biases that undervalue progress and overstate risk.
The result is that Africa pays more than three times to borrow compared to advanced economies.
Breaking this ceiling requires sound fiscal management, transparent institutions, credible data and resilience planning.
The African Credit Rating Agency can accelerate reforms that move countries closer to investment grade.
Mauritius’s decision to be the first country rated is a resounding endorsement of this new African institution and must be replicated by others.
Fourth, we must scale up innovative financing instruments.
How can Africa shield itself from the shocks of tomorrow if it relies only on conventional debt?
Local-currency bonds, climate-contingent clauses and hedging mechanisms are essential in this regard.
They preserve fiscal space, stabilize planning and ensure that when disasters strike, governments can prioritize their people over their creditors.
Côte d’Ivoire’s CFA-denominated bond issuance earlier this year, for example, is an important illustration that must be replicated and scaled across the continent.
Finally, we must link financial reforms with Africa’s structural transformation.
Credit ratings will reflect Africa’s true potential only when our economies are diversified, our value chains are regionalized, and our youth are equipped to drive innovation, entrepreneurship and industrialization.
Finance must be the engine that accelerates Africa’s progress, not the brake that slows it down.
In conclusion, Excellencies, Distinguished Delegates,
Africa is not asking for favours.
We are demanding fairness. Our creditworthiness must be judged by facts, not by perceptions.
In this respect, the establishment of the African Credit Rating Agency is not just an African milestone, but a global public good.
It will enrich the global financial ecosystem by introducing balance where there was distortion, and agency where there was exclusion.
And the ECA is ever ready to work with Member States, the African Union, our partners and the private sector to mobilize domestic resources, deepen capital markets and build the capacity needed for Africa to rise to investment grade and beyond.
Together, we can reconfigure global financial architecture so that it reflects Africa’s realities, recognizes its immense potential and equips our people with the tools to prosper.
I thank you.