LocationsBuilding a Sustainable Investment Environment and Advancing Development Finance
Event Report: [TICAD9 High-Level Thematic Event] Credit Rating in Africa
September 22, 2025
At a Glance
On the final day of TICAD9, August 22, UNDP, in partnership with AfriCatalyst, a global development advisory firm based in Africa, convened a high-level thematic event on credit ratings in Africa at Pacifico Yokohama. The event addressed one of the most pressing development challenges facing the continent: access to affordable financing. Participants discussed how improvements in sovereign credit ratings could unlock Africa’s development potential and reduce the region’s borrowing costs-currently 200 to 400 basis points higher than those of other emerging economies.
Speakers:
Ahunna Eziakonwa, UN ASG/UNDP Regional Director for Africa
H.E. Ismael Nabe, Minister of Planning and International Cooperation, Republic of Guinea
Soraya Diallo, Senior Vice President, Bloomfield Investment Corporation
Daouda Sembene, CEO, AfriCatalyst
Satoshi Nakagawa, Director, Double Feather Partners
Raymond Gilpin, Chief Economist and Head of Strategy, Analysis and Research Team, UNDP Regional Bureau for Africa
Moderator: Folly Bah Thibault, Al Jazeera Journalist/Education Advocate
Opening: Path to Financial Transformation
The session began with the opening remarks of Ahunna Eziakonwa, UNDP Regional Director for Africa, who set the stage by highlighting a stark reality: despite Africa hosting 12 of the world's 20 fastest-growing economies, the continent faces a $1.4 trillion financing gap for achieving the Sustainable Development Goals by 2030. "Access to affordable financing is not a luxury but a lifeline," she emphasized, noting that even maximizing domestic resource mobilization would fall far short of meeting Africa's development needs.
She outlined the transformative potential of the Africa Credit Ratings Initiative, supported by Japan, which has already trained 385 senior officials from 25 countries and established a high-level Consilium of 15 credit rating advisors. This initiative represents a collaborative effort with AfriCatalyst, the African Union, UNECA, and the Africa Center for Economic Transformation to fundamentally change how Africa is perceived by global financial markets.
Ahunna Eziakonwa, UNDP Regional Director for Africa
Government's Perspective through Guinea's Strategic Transformation
H.E. Mr. Ismael Nabe, Minister of Planning and International Cooperation of Guinea, provided compelling insights into how a country can strategically position itself for better credit ratings. Guinea's approach focuses on demonstrating resilience and opportunity rather than simply managing risk. "The time has come for Africa to be judged not on risk, but on resilience, not on vulnerability, but on opportunity,” Minister Nabe stated.
Guinea's transformation strategy centers on the ambitious Simandou 2040 Programme, which the Minister described as central to the country's long-term development plan based on mining. Rather than spending mining revenues immediately, Guinea has made the strategic decision to invest them in a sovereign wealth fund to support sustainable development. This approach demonstrates the kind of long-term fiscal planning that credit rating agencies value.
The Minister also highlighted Guinea's commitment to transparency and data accuracy, explaining how the government has implemented reforms such as GDP rebasing and improved inflation measurement by including data across the country. "When the rating agencies came to us, the rating was not about finance, but it was about the coordination of all the government departments, so we made sure to give them proper and consistent data," he noted.
H.E. Ismael Nabe, Minister of Planning and International Cooperation
Investor Insights and Lessons from Asia's Success
Mr. Satoshi Nakagawa of Double Feather Partners drew valuable lessons from Asia's experience, particularly Indonesia's successful transition from relying on multilateral and bilateral loans to accessing international capital markets, which required sovereign credit ratings. He emphasized that building strong sovereign investor relations was crucial in this transition, as credit ratings play a central role in dialogue with capital markets. Nakagawa highlighted the key distinction between a "growth story" (appealing to equity investors) and a "credit story" (appealing to debt investors and credit rating agencies). While growth stories focus on economic potential –abundant in Africa–, credit stories emphasize stability and resilience, which underpin the assessment of debt repayment capacity.
"The IIF studies revealed that countries with strong investor relations and debt transparency practices tend to have better credit ratings, and according to their latest report, Indonesia and the Philippines are the best-performing countries in terms of sovereign investor relations," Nakagawa observed. He recommended that African countries establish dedicated sovereign investor relations offices and adopt best practices, such as regularly publishing policy information in English, to better engage with international markets.
Nakagawa also underscored the potential for Africa to establish a regional macroeconomic research office similar to Asia's AMRO (ASEAN+3 Macroeconomic Research Office), which could also provide the investor community with independent analysis. In addition, he pointed to the avenue for reducing dependence on global credit rating agencies by promoting domestic resources mobilization, particularly through the development of local currency bond markets. Here, Asia’s two decades of experience with the Asian Bond Markets Initiative (ABMI) could offer a useful precedent.
Satoshi Nakagawa, Director of Double Feather Partners
Innovative Rating Approaches with Local Currency
Ms. Soraya Diallo of Bloomfield Investment Corporation presented an alternative approach to credit ratings that focuses on local currency assessments rather than traditional hard currency evaluations. "for WAEMU countries, we will be rating them in XOF, for entities in Central Africa, it will be in XAF, and for DRC, it will be in CDF, and that is opposed to the traditional approach of international rating agencies," she explained.
This methodology avoids penalizing African countries for having low foreign exchange reserves and provides more context-sensitive assessments of African economies. Diallo highlighted Bloomfield's work with the West African central bank to rate all WAEMU countries, with the goal of monitoring how improved financial ratings can lower borrowing costs on regional markets.
She also emphasized the importance of digitalization and AI in improving data accuracy and availability, noting that similar programs are being considered in Central Africa with support from international partners, particularly Asian countries like Japan.
Soraya Diallo, Senior Vice President of Bloomfield Investment Corporation
Building Continental Solutions
Dr. Daouda Sembene, CEO of AfriCatalyst, provided a comprehensive analysis of the structural challenges facing Africa's credit ratings. He identified several root causes, including perception gaps based on insufficient evidence, limited local presence of major rating agencies, and methodological shortcomings that fail to capture Africa's economic realities.
"African countries have a responsibility to have very strong data that are published in a timely manner," Sembene emphasized, while alarming that without reliable data, agencies may rely on outdated or inaccurate information, which can negatively affect ratings.
He advocated for a dual approach: empowering local credit rating agencies while building robust regulatory frameworks at both national and continental levels. Sembene noted successful examples of South-South cooperation, citing reforms in Guinea and Côte d'Ivoire that led to improved ratings.
Daouda Sembene, CEO of AfriCatalyst
Q＆A with Participants
The session also addressed critical questions from the audience, including one about balancing long-term creditworthiness development with immediate financing needs. Sembene emphasized the ongoing domestic reforms that many African countries have implemented to increase revenue sources as part of efforts to address immediate funding needs alongside long-term strategies. Minister Nabe echoed this point and responded by explaining Guinea's efforts in reforming the tax system and shift toward mobilizing local resources, noting that the government has increased the share of the budget allocated to investment from 20% to 40% in 2024.
The audience question also covered innovative financing mechanisms to support sustainable development, responded to by Minister Nabe with discussions covering diaspora engagement, support for local business champions, and the strategic use of credit export agencies. He noted the importance of building human capital, especially by empowering young and driven entrepreneurs through coaching and training, while also mentioning the need for building trust and confidence in the system to encourage more diaspora investment.
Closing: A Roadmap for Action
The closing remarks were delivered by Raymond Gilpin, UNDP's Chief Economist for Africa, who synthesized the discussion around three critical actions: increasing the number of African countries prepared for the credit rating process, ensuring the availability of accurate governance and institutional data, and shifting global narratives to position Africa as an investment opportunity rather than a risk.
"Credit ratings are at the core of development financing in Africa, as external funding options are shrinking or becoming too expensive," Gilpin stated. He emphasized that the work of institutions like Bloomfield is already demonstrating Africa's investment potential through alternative assessment methodologies.
Raymond Gilpin, UNDP Chief Economist and Head of Strategy, Analysis and Research Team for Africa
As the discussion demonstrated, transforming Africa's credit landscape requires a multifaceted approach combining accurate data, transparent governance, regional cooperation, and innovative financing mechanisms. Improving credit ratings is not just about accessing capital; it's about freeing up resources currently spent on high debt service costs and redirecting them toward development priorities.
The path forward involves not just technical improvements but a fundamental shift in how Africa presents itself to the world, from a continent of risks to one of unprecedented opportunities.
Date/Time: 10:00-11:30 JST, August 22, 2025
Location: Pacifico Yokohama Exhibition Hall D
Format: Hybrid (In-person:31, Online:53)
Languages: English, Japanese, French
Organizers: UNDP, AfriCatalyst
Related
content
content
