Call for Stronger Differentiation Between Africa’s Credit Rating Agencies from the “Big Three”

The African Credit Rating Agency (AfCRA) should have an embedded bias towards ensuring affordable finance across the continent to ensure the sustainable development of African Union (AU) Member States, advised Dr Patrick Sokhela, the Acting Deputy Director General for Government Services Access and Improvement (GSAI) at the DPSA.

Representing African Peer Review Mechanism (APRM) structures in South Africa, the Acting Deputy Director General, made these remarks at the opening of the 2025 Africa Annual Conference on Credit Rating yesterday, 21 May 2025, and ending today.

African nations continue to be unfairly rated in the global financial markets which impedes access to affordable credit and undermines their economic development, given the negative messages that poor ratings send out to potential investors.

African countries are facing several challenges in their dealings with the ‘big three’ dominant international credit rating agencies. Some of these challenges pertain to inaccuracies in credit rating models, credit rating biases, exaggerating negative risk perception and misconceptions by foreign-based credit rating analysts about African sovereigns and their entities.

Like those before it, the theme for this year’s conference, “Unlocking Domestic Financing through Improved Credit Ratings”, is aimed at creating a platform for reviewing and reflecting on the impact of global rating agencies on the welfare of African nations. Importantly, the 2025 edition of the Africa Annual Conference on Credit Ratings is meant to forge a common approach in the operationalisation of AfCRA among public, civil society and private sector stakeholders.

“AfCRA’s disposition and approach to its tasks should be through the lens of the African continent and should play a developmental role that is accompanied by the requisite capacity to intervene, as and when necessary, to support member states,” said Dr Sokhela.

He called for stronger solidarity among African nations, especially in light of South Africa’s G20 Presidency, whose theme is “solidarity, equality and sustainable development”.

“I’m therefore certain that this platform will come up with specific ideas to support countries to unlock their potential to economic prosperity and sustainable development, which aligns with our theme for G20 Presidency,” he concluded.