The second day of the African Peer Review Mechanism’s (APRM) annual conference on credit ratings saw key discussions on improving Africa’s economic outlook through stronger domestic capital markets and credit rating reforms.

Held in Cape Town, the event brought together African governments, central banks, credit rating agencies, investors, and development finance institutions. A major focus was addressing the steep penalties African nations face in global capital markets due to perceived risk, and the push for establishing a pan-African credit rating agency to provide more accurate assessments.

Sunil Benimadu, CEO of the Mauritius Stock Exchange, delivered a keynote address highlighting lessons from countries like South Korea, Singapore, India, and China, which transformed their economies through bold capital market reforms.

“Fifty years ago, these nations faced economic struggles similar to Africa’s today,” Benimadu said. “By deepening their capital markets and embracing reforms, they became global economic powerhouses.”

He emphasized that Africa must unlock domestic financing to bridge critical funding gaps, including an estimated 100billionannuallyforinfrastructureand200 billion for Sustainable Development Goals (SDGs).

A recurring theme was the need to strengthen local bond markets to reduce reliance on volatile foreign investment. Experts argued that better credit rating systems would improve investor confidence and attract long-term capital.

Benimadu shared Mauritius’ success in expanding its stock exchange by adopting multi-currency listings and attracting international investors. “We shifted from a small, equity-centric market to a diversified, multi-asset exchange,” he said.

Delegates stressed the importance of policy coordination across African nations to create deeper, more integrated capital markets. “We need unity of purpose among policymakers to unlock Africa’s economic potential,” Benimadu added.

The conference continues to explore strategies for improving credit accessibility and fostering sustainable growth.