Finance and credit experts, policy leaders and economists gathered last month, May 2025, in Cape Town, South Africa, for the second edition of the Africa Credit Rating Conference.

One of the most compelling themes of the conference was the disparity between how African countries are perceived and the economic progress they are making. Kenya Revenue Authority Chairperson Ndiritu Murithi called out global double standards:

“Last year, there were protests in over 100 countries. In the West, they were seen as democratic expression. In Africa, the same events were labeled as instability, and our credit ratings dropped. That’s unfair.”

Speakers highlighted how global Rating Agencies often overlook local context and progress, relying on outdated metrics that do not reflect on-the-ground realities.

Untapped Potential Across the Continent

Caroline Wambugu of Safaricom PLC noted that only two African nations currently hold Investment-Grade credit ratings. She pointed to Africa’s booming Fintech sector as evidence of innovation and capacity:

“Platforms like M-PESA and Vodacom Cash prove what Africa can achieve. But credit systems need to catch up.”

With Africa projected to have 25% of the global working-age population by 2050, many believe now is the time to reshape how the continent is assessed by the financial world.

The Case for African-Led Rating Agencies

Keynote speaker Sunil Benimadhu, CEO of the Stock Exchange of Mauritius, emphasised the power of local solutions. Countries like Nigeria, Mauritius, and Côte d’Ivoire have already established homegrown Credit Rating Agencies such as DataPro Limited with promising results:

“Credit ratings are not just symbolic. They determine who gets funding and at what cost. We need ratings that reflect our realities and priorities.”

These domestic agencies have helped to lower borrowing costs and encouraged more institutional investment, including from African Pension Funds.

The Cost of Inaction

Zuzana Schwidrowski from the UN Economic Commission for Africa warned that without fair and transparent ratings, African countries will continue to pay a premium on borrowing—even when implementing effective reforms. That diverts resources away from critical infrastructure, health, and social development.

A Unified Vision for Reform

The conference was co-hosted by institutions including the African Peer Review Mechanism (APRM), UNECA, UNDP Africa, Africatalyst, Huawei, and Safaricom. Participants shared a united goal: building a credible, African-centered credit rating system that promotes inclusive growth, unlocks investment, and tells the real story of Africa’s potential.

As the event concluded, the message was clear: Credit ratings are no longer just a technical issue—they are a development imperative. And Africa is ready to lead the change.