East African Government Officials Push for Improved Credit Rating Processes and regional Cooperation at UNDP and AfriCatalyst Workshop

Government officials and stakeholders from the East African region have advocated for increased collaboration and training for a better understanding of the credit rating processes during a high-level policy dialogue, which was part of a three- day regional workshop hosted by UNDP Africa and AfriCatalyst. 

The three day workshop focused on enhancing credit ratings for development and aimed to address the complex challenges  faced by the officials while preparing for and undergoing rating reviews.

Speaking at the high level dialogue that concluded the workshop,  Zuzana Schwidrowski, the Director, Macroeconomics, Finance & Governance, United Nations Economic Commission for Africa, emphasized the need for African countries to integrate credit ratings into their national development priorities, 

“African countries should look at credit ratings as part of developing financial markets and should put it as part of their national development. Ratings are forward looking , so it’s not really about today but the future and what the outlook is.”

Abeid Farahani, an Economist from the Ministry of Finance, Tanzania, attributed Tanzania’s credit rating upgrade to the country’s implementation of positive development-focused policies. “The reason behind Tanzania’s being upgraded by rating agencies is its economic strength, diversification of the economy,and a track record from the previous years, pre-COVID 19. To achieve this positive outlook countries need to implement the right policies” he stated

While speaking on the issue of collaboration Joy Gessa, Principal Economist, Debt & Cash Policy, Ministry of Finance, Planning and Economic Development, Uganda, underscored the need for country-country collaboration in sharing the strengths and weaknesses of each country saying

 “Collaboration is crucial. Sharing experiences with other countries allows us to identify our strengths and weaknesses, especially in how we approach credit rating reviews.””

 Global Head of Sovereigns, S&P, Roberto Sifon Arevalo, engaged with the speakers and participants on the transparency, methodologies and best practices they need to manage a country’s rating process. 

“Countries need to have a stable group of technical teams who understand how the rating process works, not just the methodology but also what all other parts are. What does the rating committee need?”

In his comments during the session, Shigeki Komatsubara, Resident Representative, UNDP Tanzania, stressed the importance of African countries taking initiative in shaping their own narratives. He urged countries to be more ambitious, emphasizing that they need to actively influence and redefine their financial stories to achieve better credit ratings.

“Credit ratings are not our enemies,understanding how they operate and own the rating process is crucial. African countries need to be more pragmatic and ambitious creating persuasive business narratives to influence their ratings,” he remarked.

Evace Byabazaire, Manager, Financial Markets Development, Bank of Uganda also emphasized the need for African countries to present their own stories to rating agencies. “Selling our own stories to rating agencies is essential for improving our credit ratings.” She also highlighted that high-level involvement from top government officials is important for advancing Africa’s positive narrative. “

We need top government officials to be actively involved in pushing our positive narrative,” she added

About the Initiative

As part of  efforts to help African countries navigate and improve their credit ratings, UNDP and AfriCatalyst launched a comprehensive credit ratings initiative. This initiative includes several key components: the Africa Credit Ratings Resource Platform, which serves as a central hub for resources and tools on credit ratings; a Concilium of senior advisors who provide high-level guidance and support to countries seeking to enhance their credit ratings; and a community of practice designed for knowledge sharing and collaboration among government officials and other stakeholder

About UNDP

UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and the planet. Learn more at undp.org or follow @UNDP and @UNDPAfrica.

About AfriCatalyst

AfriCatalyst is an independent, global development advisory firm that strives to build partnerships between global and local actors to promote innovative, evidence-based solutions to Africa’s development challenges.