Addis Ababa, 17 October 2022 (ECA) – The Innovative Finance and Capital Markets Section, Private Sector Development and Finance Division, United Nations Economic Commission for Africa (ECA), in collaboration with the African Peer Review Mechanism (APRM) and with the support from the French Development Agency (AFD), organized an Expert Group Meeting (EGM) on Sovereign Credit Ratings. The EGM was held in a hybrid format, on 13-14 October 2022.
Sovereign rating is used to assess the creditworthiness of a country when it borrows on the domestic and international financial markets. It has an influence on the cost of borrowing. Improving and maintaining good sovereign ratings, is therefore essential for managing public debt and attracting investors. The EGM aims to facilitate exchange and raise greater awareness on the challenges, priorities, and recommendations on sovereign credit ratings of African countries.
Mr. Robert Lisinge, Officer in Charge, Private Sector Development and Finance Division, ECA, Ms. Sonia Lioret, Associate Director of AFD office in Addis Ababa, Mr. Batlokoa Makong, Chief of Staff, APRM, and Ms. Ndinaye Sekwi Charumbira, on behalf of Mr. Djamel Ghrib, Director of Economic Development, Integration and Trade, African Union Commission, delivered their welcome and opening remarks. All speakers recognized the importance and relevance of sovereign credit rating in Africa. Mr. Robert Lisinge added: “This EGM provides a timely opportunity for countries to raise pressing issues and needs, strengthen their technical capacity to understand rating methodologies and processes, establish a channel of communication with rating agencies, and build a regional network for peer learning.”
Moody’s Investors Service, Fitch Ratings, Augusto & Co., Sovereign Africa Ratings, Scope Ratings, and Bloomfield Investment Corporation presented their rating methodologies. They also had open and engaging discussions with country representatives. Experts from Ghana, Mauritius, Nigeria, Egypt, Senegal, and South Africa shared their experiences with sovereign ratings and regulatory frameworks. The APRM presented an overview of the state of sovereign credit ratings in Africa, and an update on the African Credit Rating Agency. The African Export–Import Bank (Afreximbank) provided an overview of their own rating process and product offerings to African countries.
All participants agreed on preliminary Conclusions and Recommendations, which underscore the importance of clear guidance on national strategies, robust communication, capacity building, peer-learning, and joint efforts by all stakeholders to address the challenges faced by African countries in sovereign credit rating.
Ms. Sonia Essobmadje, Chief, Innovative Finance and Capital Markets Section, Private Sector Development and Finance Division, ECA, stressed the importance of maintaining a good credit rating throughout economic cycles and outlined the main programs put in place by ECA to support the continent. She concluded the EGM by thanking all the speakers, experts, and participants at the event, and reaffirmed ECA’s commitment to assist member States in establishing a favorable environment and market transparency to enhance their creditworthiness.
The EGM was attended by representatives from Angola (virtual), Cabo Verde (virtual), Cameroon, Republic of the Congo, Egypt, Equatorial Guinea (virtual), Eswatini, Ethiopia, Ghana, Guinea, Kenya (virtual), Lesotho, Malawi, Mauritania, Mauritius, Mozambique, Namibia, Nigeria, Sao Tome and Principe (virtual), Senegal (virtual), Seychelles (virtual), South Africa, Uganda, and Zambia.
Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org
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