Experts and policymakers gathered at the annual 2025 Africa Credit Rating Conference in Cape Town to discuss the urgent need for an African credit rating agency, aiming to reduce reliance on international financial markets and boost domestic investment.

The conference, attended by financial analysts, government officials, and economists, highlighted the challenges African nations face due to dependence on foreign credit ratings, which often result in higher borrowing costs and limited access to capital.

Dr. Misheck Mutize of the African Peer Review Mechanism, a key speaker at the event, emphasized the need for African countries to move away from Eurobond markets and instead strengthen domestic financial systems.

“Most of our borrowing shifted to the Eurobond market after the decline in donor funding, but this comes with complexities beyond our control,” Dr. Mutize explained. “This conference is about igniting the conversation on domestic resource mobilization and developing our own financial markets.”

The discussion also addressed recent global credit rating developments, including Moody’s downgrade of the United States. Dr. Mutize noted that while such downgrades cause market reactions, Africa’s bigger issue is the high cost of accessing international capital, even for countries with relatively stable ratings.

“Even if African nations had better ratings, borrowing in foreign currency remains unsustainable because repayment still requires foreign reserves, which many countries struggle to maintain,” he said.

A major theme at the conference was the push for an Africa-based credit rating agency to provide more accurate and context-sensitive assessments of the continent’s economies. Proponents argue that this would reduce bias, lower borrowing costs, and encourage investment in local markets.

“We need to promote a rating culture within Africa, educate corporations on domestic capitalization, and strengthen our stock and debt exchanges,” Dr. Mutize added.

As the conference concluded, participants stressed the importance of collaboration among African nations to build resilient financial systems. The call for an African credit rating agency signals a broader movement toward economic self-reliance and reduced dependency on global financial institutions.

The event, held in Cape Town, brought together key stakeholders to chart a path forward, with hopes that these discussions will translate into actionable policies for sustainable growth.