Blog

Making Africa’s credit ratings more objective

In recent decades, the financing for development landscape has changed dramatically, with aid flows declining relative to investment and borrowing on capital markets. This makes the cost of borrowing critical. African countries face some of the highest borrowing costs in the world for sovereign debt, partly due to low credit ratings. Only two African economies are currently rated at investment-grade levels, implying high interest rates and low borrowing volumes for the continent.

Authors

RECENT POSTS

As aid declines, the African Development Fund-17 secures $11 billion for Africa’s green transition

Global Leaders unite to advance the African Development Fund’s 17th Replenishment

Africa must rethink credit ratings to unlock domestic financing