THREE African nations have secured sovereign credit rating upgrades from major international agencies, while two others received positive outlook revisions, marking what development organisations describe as a shift in the continent’s financial trajectory.
Ghana, Zambia and South Africa received upgrades in recent months, whilst Nigeria and Uganda saw their outlooks improve, the African Peer Review Mechanism (APRM), United Nations Economic Commission for Africa (ECA) and UN Development Programme (UNDP) announced Friday.
The upgrades coincide with the Africa Credit Ratings Initiative, a UNDP-led programme launched by the three organisations to help African governments navigate credit rating systems and engage more effectively with agencies including Moody’s, Fitch and S&P Global Ratings.
Ghana received three separate upgrades following a $13.1 billion Eurobond restructuring. S&P Global Ratings raised the country from CCC+ to B– in November, citing improved liquidity and reduced risks. Moody’s upgraded Ghana from Caa2 to Caa1 in October, while Fitch lifted it from Restricted Default to B– in June, both with stable outlooks.
Zambia emerged from default status after five years when S&P upgraded its rating from Selective Default to CCC+ in November, following agreements to restructure approximately 94% of its $13.3 billion external debt.
South Africa’s upgrade in November reflected stronger fiscal signals and better-than-expected macroeconomic performance, according to rating agencies.
Guinea received its first sovereign credit rating of B+ from S&P in November, whilst Nigeria and Uganda saw positive outlook revisions based on improvements in external liquidity and fiscal consolidation.
The initiative has trained over 260 officials from 18 countries, according to Ahunna Eziakonwa, UN Assistant Secretary-General and UNDP Regional Director for Africa.
“Governments are now better equipped to negotiate with rating agencies, potentially shifting Africa’s global market narrative,” Eziakonwa said.
Jean-Marc Kilolo, an ECA team member on the programme, said African countries have historically faced challenges with low ratings due to inadequate data and poor institutional coordination.
The upgrades could reduce borrowing costs for affected nations and potentially attract increased foreign investment to their economies.
