Washington, D.C. - 23 April 2025 — Executive Secretary of the Economic Commission for Africa (ECA), Claver Gatete, has underscored the urgent need for establishing an African credit rating ecosystem that “reflects Africa’s regional realities and complements, rather than merely mimics global agencies.”
Speaking at a high-level dialogue event co-hosted by the APRM, UNDP, AfriCatalyst, ACET and the Open Society Foundations on the margins of the World Bank and the International Monetary Fund (IMF) Spring Meetings in Washington DC, he stressed that African countries should not simply be passive subjects of ratings, but active architects of their own credit narratives.
“An African credit rating ecosystem is critical to reforming the global financial system to better serve the continent's diverse economies,” he added.
Mr. Gatete posed a question to illustrate the failure of the current financial system, asking, “why, despite having 54 nations and a combined GDP of $3 trillion, do only Botswana and Mauritius hold investment-grade credit ratings?” The answer, he argued, lies in a financial system that fails to recognize Africa's unique challenges and opportunities.
Gatete also highlighted the paradox facing Africa: while the continent is rich in potential, boasting dynamic populations, expanding markets, and innovation, many countries are grappling with rising debt vulnerabilities and mounting costs of borrowing.
He pointed out that African nations have been subjected to unfair credit ratings based on limited data and inconsistent criteria, which often leads to higher borrowing costs and constrained access to capital. For instance, African countries have been paying an average of 12%-14% on Eurobonds, starkly higher than the 3% average for the Euro Area.
To address these issues, Gatete proposed five actionable steps toward establishing a credible and effective credit rating ecosystem tailored to Africa's realities:
First, we must establish an African credit rating ecosystem that reflects Africa’s regional realities and complements rather than merely mimics global agencies. This must be an ecosystem that works for Africa, one that is African-led, African-informed and globally credible,” he said.
Second, we must strengthen our data systems and equip national statistical offices, credit bureaus and regional observatories to deliver timely, granular and context-rich data.
Third, we must build a robust regulatory framework, inspired by international best practices such as the European model, where rating actions follow a transparent and predictable calendar.
Fourth, we need cross-sector collaboration, such as sovereign issuers, investors, regulators and international partners, all working in harmony. A well-functioning credit rating system must be greater than the sum of its parts.
Fifth, and most critically, we must build Africa’s domestic capacity by empowering African professionals with the technical expertise and institutions needed to lead credit analysis based on Africa’s own realities.
Mr. Gatete also emphasized the importance of collaboration, stating that the ECA is committed to partnering with organizations like the APRM, UNDP, AfriCatalyst, and the Open Society Foundations to realize this vision. He noted that the current political climate, including South Africa as chair of the G20 and the African Union's status as a permanent member, presents a unique opportunity for Africa to advocate for reforms that reflect the continent's lived experiences.