African economies continue to face significant challenges related to credit ratings, including perceived biases, lack of transparency, and subjective assessments. With over thirty countries across the continent being rated, actions taken by global credit rating agencies directly influence sovereign debt costs, affecting access to global capital markets and financial sustainability. With South Africa hosting the G20 in 2025, and the African Union (AU) now a permanent member of the G20, this is a critical moment for African governments to shape the reform of the global financial architecture in a way that supports fair and sustainable access to credit.

Recent developments in this area include the AU’s establishment of an Africa Credit Rating Agency (AfCRA), led by the African Peer Review Mechanism (APRM), as well as the launch of the United Nations Development Program (UNDP) and AfriCatalyst credit ratings initiative in 2024, aimed at helping African countries navigate their credit ratings processes effectively.

Building on this, The APRM, UNDP, UNECA, ACET, AfriCatalyst and the Open Society Foundations are co-hosting a side event titled: Developing a credit rating ecosystem in Africa, on the margins of the 2025 IMF/World Bank Spring Meetings This event will explore how a well-functioning, African-led credit rating ecosystem can mobilize financing, enhance debt sustainability, and drive Africa’s development agenda at the global level.

The event will provide a platform for discussions on several issues related to credit ratings, including:

a)     The role of credit ratings in shaping Africa’s economic development.

b)    Challenges and opportunities in the credit rating process for African countries. .

c)     The rationale and roadmap for establishing an Africa Credit Rating Agency (AfCRA).

d)     Highlight the current and planned work of credit ratings capacity building initiatives.

e)     Explore strategies to improve transparency and engagement with global rating agencies.

f)      Strengthen collaboration between African institutions and international financial organizations.

g)     Collaboration between African institutions and international stakeholders to enhance the credit rating process.