Africa sovereign credit rating review

The record number of sovereign rating downgrades of African countries since the outbreak of Covid-19 has indeed justified the rationale behind the African Union Assembly Decision for the APRM to provide support to countries in the area of credit ratings. The impact of these rating downgrades has been far-reaching and continues to threaten the sustainability of public debt due to high borrowing costs. On the other hand, a number of African countries have missed the opportunity to restructuring their debt through multilateral debt relief programs mainly because rating agencies would classify them as defaulters. These developments have magnified the impact of the Covid-19 pandemic, which continues to extend severe strain on fiscal position of countries.