In 2002 UNDP and USAID both launched separate initiatives to assist African countries to obtain sovereign credit ratings with the aim of spurring increased flows of private capital towards financing sustainable development. Thanks to these efforts, the number of African countries with credit ratings increased nearly five-fold from just seven in 2001 to 32 today.

Nearly two decades on, and after a succession of sovereign rating downgrades throughout the region, serious questions are being raised about the validity of conventional credit rating methodologies in Africa and about the impact of negative rating actions on sustainable development.

At least 15 countries in sub-Saharan Africa have suffered negative rating actions since the Covid-19 pandemic began, which could raise the cost of financing their health and economic recoveries from the crisis. The threat of further downgrades is also discouraging some eligible countries in the region from participating in the G20 Debt Service Suspension Initiative (DSSI) and Common Framework for Debt Treatments Beyond the DSSI.

Have sovereign ratings in Africa been unfairly downgraded by the credit rating agencies? Should the agencies consider the sustainable development and humanitarian implications of their rating actions? And what can governments, regulators and the development community do to prevent a ‘sovereign credit rating crisis’ in Africa?

Join us for a roundtable discussion which will bring together key actors from the credit rating industry to share their perspectives on these questions and more in order to inform a more balanced understanding of the advantages, disadvantages and limitations of sovereign ratings in Africa, and the opportunities for enhancing their sustainable development impact.

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