Top 10 African countries with the highest credit ratings

Similar to when individuals borrow money to meet their needs, countries sometimes take loans to advance development within their borders, especially when they lack the financial capacity to do so.

However, securing these funds is no stroll in the park. It involves a series of processes, and one pivotal metric that wields significant influence is credit rating.

Credit rating is an estimate of the ability of a person, organization or country to fulfill their financial commitments based on previous dealings.

In the global context, countries with high credit ratings tend to attract more investment and better terms for borrowing.

However, many African countries have had lower credit ratings, leading to higher borrowing costs and reduced access to international capital markets.

The credit rating industry in Africa is dominated by three international agencies: Moody’s, S&P and Fitch, but African countries have expressed discontent with their ratings.

Recently, the African Union announced its intention to launch a new African credit rating agency next year to tackle the organisation’s concerns regarding what it perceives as unjust ratings assigned to countries on the continent.

A United Nations Development Programme study showed that African countries could save up to $74.5 billion if credit ratings were based on less subjective assessments.

According to data from Trading Economics, here are the credit ratings for African countries as assessed by any of the “big three” rating agencies.

Source: businessinsiderafrica