Pretoria — Public Service and Administration Minister, Inkosi Mzamo Buthelezi, has urged African governments to prioritise strong governance and fiscal discipline as critical factors in improving the continent’s sovereign credit ratings and unlocking sustainable development.
Speaking at a public lecture hosted by the African Peer Review Mechanism to mark the 23rd anniversary of its founding, Minister Buthelezi emphasised that credit ratings are not merely technical financial tools but key determinants of Africa’s development trajectory.
“Access to affordable finance is not just a financial matter, it is a developmental and justice issue,” he said, highlighting how ratings directly influence the cost of building infrastructure, financing healthcare, and creating opportunities for young people.
The Minister acknowledged longstanding concerns from African policymakers about perceived bias in global rating systems dominated by international agencies. However, he cautioned against using these concerns as excuses, stressing that governance failures within African states remain a significant factor affecting ratings.
“We must move beyond protocol and into performance,” said Minister Buthelezi. “Markets respond to credibility, discipline, and governance, not declarations.”
He also addressed growing momentum behind the establishment of an African Credit Rating Agency (AfCRA), positioning it as a step towards strengthening the continent’s financial independence. However, he warned that such an institution must be credible, independent, and technically sound to gain global recognition.
“Africa does not need a friendly rating agency; it needs a credible one,” he said.
Minister Buthelezi praised the role of the African Union and the APRM in promoting accountability, transparency, and peer-driven reforms across member states.
Concluding his address, the Minister called on African nations to take ownership of their economic future by strengthening institutions and aligning governance with global standards.
“If our governance is weak, ratings will reflect it. If our credibility is compromised, investment will retreat,” he said.
