During the 80th Session of the United Nations General Assembly in September 2025, UNDP and partners convened two strategic dialogues on Africa's financial sovereignty and the imperative for fairer credit rating practices.

Africa Group Consultation on AfCRA

On 18 September 2025, UNDP partnered with the African Peer Review Mechanism (APRM) to engage the Africa Group and UN agencies on the establishment of the Africa Credit Rating Agency (AfCRA). The consultation brought together representatives from Ethiopia, Kenya, the UN Office of the Special Advisor on Africa (UNOSSA), the UN Office for South-South Cooperation (UNOSSC), and the UN Capital Development Fund (UNCDF) for a candid discussion on Africa's credit rating challenge. 

A presentation by APRM shared updates on AfCRA’s progress, including the selection of its primary jurisdiction and plans to issue the first ratings by January 2026 ahead of the African Union Summit. The market opportunity is significant: 21 unrated African countries and an estimated USD 46 billion in untapped corporate and municipal rating opportunities await more accessible and contextually appropriate assessment frameworks.

Participants agreed on the urgency of elevating the cost of capital issue and exploring concrete areas for collaboration in research, advocacy, and technical support.

High-Level Dialogue on Reforming Global Credit Rating Practices

On 23 September 2025, UNDP co-hosted a high-level dialogue titled, "Reconfiguring Global Credit Rating Practices: African Perspectives on Reforming the Financial Architecture", at the Permanent Observer Mission of the AU to the UN. Organized in partnership with APRM, AfriCatalyst, the UN Economic Commission for Africa (UNECA), and the African Center for Economic Transformation, the event drew over 200 participants both online and in-person.

Featured speakers included Ms. Ahunna Eziakonwa, UN Assistant Secretary-General and UNDP Regional Director for Africa; Mrs. Francisca Tatchouop Belobe, African Union Commissioner; Amb. Claver Gatete, Executive Secretary, UNECA; Amb. Marie-Antoinette Rose Quatre, CEO, APRM; Dr. Daouda Sembene, CEO, AfriCatalyst; Prof. Vincent O. Nmehielle, Secretary General, AfDB; and Mr. Yusuf Daya of Afreximbank.

Speakers highlighted the need for reform across global credit rating systems. Out of 34 rated African countries, only three hold investment-grade status, while 21 remain unrated and excluded from capital markets. Between 2008 and 2022, more than half of rated African countries experienced downgrades, driven largely by external shocks rather than domestic fundamentals.

The “Africa premium” was cited as a key barrier, with governments paying up to four times more to borrow than comparable countries elsewhere in the world. This disparity reduces fiscal space and constrains essential investments in education, health, infrastructure, and job creation. With fairer methodologies, borrowing costs could fall by 50–100 basis points, saving African countries up to USD 5 billion annually. These resources that could transform development outcomes across the continent.

The Africa Credit Ratings Initiative

Both dialogues were organized as part of the UNDP Africa Credit Ratings Initiative, launched in 2024 to support African governments in strengthening their creditworthiness and improving engagement with credit rating agencies. Working in close collaboration with partners, the initiative combines technical assistance, institutional capacity building, and strategic advisory support to help countries better articulate their economic narratives and prepare for rating assessments.